OAKLAND — Two apartment hubs in downtown Oakland’s lively Uptown neighborhood are facing foreclosure of their delinquent loans in a fresh sign of weakness for the city’s multifamily residential sector.
CBRE Capital Markets has scheduled separate foreclosure proceedings for the apartments this spring, during which the residential hubs will be placed on the auction block. If buyers don’t emerge, the lender is threatening to seize the properties.
The apartment properties fell into default on their loans in July 2024, documents on file with the Alameda County Recorder’s Office show.
Telegraph Arts, a 97-unit apartment building at 471 26th St., is in default on a $31.6 million loan issued to its owner.
The Moran, a 78-unit five-story apartment property at 570 21st St., has defaulted on a $20.7 million loan provided to its owner, county files show.
Both properties are owned by Switzerland-based investment company UBS, acting through an affiliate of its Trumbull Property Fund.
In 2020, CBRE Capital Markets provided the financing packages for the residential hubs, Alameda County documents show.
The UBS Trumbull Property affiliates developed both of the apartment properties, which are separated by less than a mile.
The investment bank’s Trumbull entity bought the development site at 471 26th St. in 2017 for $6.7 million. The real estate firm obtained a $34.3 million construction loan at that time to build the seven-story apartment hub that would become Telegraph Arts. It was completed in 2019.
Also in 2017, the Trumbull real estate group paid $4.6 million for the 570 21st St. development site. The company landed a $24.6 million construction loan to build The Moran.
Bank of America provided construction financing for both properties. In both instances, CBRE Capital Markets provided loans to replace the construction funding soon after the apartment projects were completed.
The Oakland commercial property market is struggling with financial setbacks that have triggered loan failures in some instances. Apartments, hotels, and office buildings have flopped into foreclosures.
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