A court-appointed receiver is seeking buyers for the Concord Tech Center, a two-building office campus in Concord, California. The move comes after the Swiss owner of the 477,500-square-foot property defaulted on a $400 million loan that was also backed by three other California properties.
Stapleton Group, acting as receiver, has partnered with Newmark to market the campus for sale. According to the San Francisco Business Times, Wells Fargo—the largest tenant at the complex—recently renewed its lease for 257,000 square feet. This renewal marks the largest office lease in the East Bay so far this year.
The properties at 1655 and 1755 Grant Street were purchased by Switzerland-based Partners Group from Swift Real Estate Group in 2018 for $148 million. Swift Real Estate Group continued to manage the property after the sale. A Swift affiliate secured the $400 million loan from Wells Fargo that same year. As of January, $382 million remained unpaid on the principal.
Earlier this year, Wells Fargo initiated judicial foreclosure proceedings in Contra Costa County Superior Court. In May, Stapleton Group was appointed as receiver of the property. Newmark is now accepting bids for either both buildings together or each individually.
The Concord Tech Center may join other office properties along Interstate 680 that have sold at significant discounts following financial difficulties. For example, FH One Investments acquired Sutter Square at 1800 Sutter Street out of receivership for $13 million earlier this year—a 58 percent drop from its previous purchase price of $31 million in 2020. That building’s former owner defaulted on a $25.5 million loan last year.
Other recent East Bay transactions include Hall Equities’ purchase of Ygnacio Center in Walnut Creek for $111 million and Peninsula Land & Capital’s acquisition of 3003 Oak Road for $22.5 million.
