Success Stories

  • Takeover in November 2010
  • Resolution in December 2011
  • Lender Recovery*: 93%

    * Assumes repayment of the B-Note at maturity
  • Value at Takeover: $6.5MM
  • UPB at Takeover: $10.1MM
  • Value at Resolution: $8.0MM

Tribune Tower

82,000 SF Office Building in Oakland, CA
The property is a historic office building in downtown Oakland, CA that was the former headquarters of the Oakland Tribune newspaper. The Oakland Tribune vacated the asset in 2007. At takeover, the property was 15% occupied and not generating sufficient cash flow. In addition, there were various deferred maintenance items that needed immediate attention.

Action

The Receiver initiated an asset marketing campaign within the leasing broker community to generate renewed interest in the building. During the Receiver's possession, leases with three new tenants were negotiated and two of the existing tenants were renewed. In addition, the Receiver restructured the financial performance, designed multi-tenant plans and made various repairs including restoring the tower's clock.

Outcome

The Receiver sold the asset in December 2011 to a group of foreign investors participating in the EB-5 visa program for $8MM. The EB-5 visa program was created by the Immigration Act of 1990 and provides a method of obtaining visas for foreign nationals who invest money in the United States and create jobs in high unemployment areas. The Receiver negotiated an A/B Note structure where the buyer assumed a $6.7MM A-Note with the balance of the original loan partitioned into a non-interest bearing B-Note. Upon asset sale or refinance, the lender is entitled to 50% of the gross proceeds less a 12.5% return for the buyer's initial equity.