West Oakland Apartments Sell at Foreclosure

A newly built apartment complex in West Oakland has been seized by its lender after a nearly $60 million loan default.

An affiliate of Parkview Financial real estate investment trust bought the 102-unit residential property at 1919 Market Street for $37.5 million, the Mercury News reported, citing a Jan. 7 trustee’s deed. At the time of the formal foreclosure, the unpaid debt on the site was up to $58.5 million.

As part of the foreclosure process, an affiliate of the project’s developer, oWow, lost ownership of the multifamily property. Last June, Boston-based lender UC Funds acquired the 1919 Market Street building via a deed in lieu of foreclosure, which transferred ownership of the asset to the lender instead of beginning the formal foreclosure process, the San Francisco Business Times reported last summer.

Parkview Financial provided $32 million in construction financing for the project in 2019. The loan was modified the following year. Parkview issued a notice of default last August, followed by another notice last month of the proposed foreclosure sale. The building’s value in July 2024 was $40 million, according to Alameda County Tax Assessor data cited by the Business Times.

The apartment complex is an adaptive reuse of a former Greyhound bus terminal, per Parkview Financial. Another former Greyhound station in San Jose similarly faced foreclosure and seizure last year, with a lender group moving to foreclose on the property in October for $22.2 million. Last month, the new owners received $23 million in financing to revive the site, which was already approved for a residential high-rise.

Over the past year, the Bay Area multifamily market has seen several loan defaults, foreclosures and sales at steep discounts.

Last month, an affiliate of lender Madison Realty Capital, began the final stages of the foreclosure process for the 363-unit Fay high-rise in San Jose. Veritas Investments is also facing foreclosure on 66 residential buildings in San Francisco after defaulting on $652 million of debt. The more than five dozen properties total 1,566 units.

— Chris Malone Méndez