AXS Opportunity Fund Grabs Concord Offices for $45 Million

An office complex in Concord that fell into receivership following a loan default has traded hands at a significant discount.

Beverly Hills-based investment firm AXS Opportunity Fund, acting through an affiliate, bought the twin office buildings at 1655 and 1755 Grant Street for $45.3 million, the East Bay Times reported. The sale price marks a 69 percent drop from the $148 million that the prior owner, Switzerland-based Partners Group, paid for the buildings in 2018.

The 477,500-square-foot complex, known as Concord Tech Center, including the 13-story office tower at 1655 Grant Street totaling 292,900 square feet and a four-story office structure at 1755 Grant totaling 184,600 square feet. Stapleton Group was appointed as receiver last May after lender Wells Fargo pursued a judicial foreclosure in Contra Costa County Superior Court earlier last year. In 2024, Partners Group defaulted on a $400 million loan backed by Concord Tech Center and three other California properties, including another East Bay business center, the Rosewood Commons in Pleasanton.

The Concord Tech Center transaction is the latest distressed office sale in the East Bay.

Last month, a Deutsche Bank AG affiliate seized three office towers in downtown Oakland through a deed-in-lieu of foreclosure. Starwood Capital Group owned 2101 Webster Street, 1901 Harrison Street and 2100 Franklin Street prior to a lender takeover. The unpaid debt for the three office buildings totals $442.1 million, the Mercury News reported. The original loan Deutsche Bank provided to Starwood totaled $364.5 million. Starwood purchased the office buildings in 2019 for a total of $494 million.

Also last month, three Oakland office properties were taken over by a receiver after another loan default. Lender Rialto Capital Management filed a lawsuit in Alameda County Superior Court to foreclose on a portfolio that includes Oakland’s Tribune Tower, the Financial Center building at 405 14th Street and offices at 1500 Broadway, the San Francisco Business Times reported. The legal action came after Highbridge Equity Partners defaulted on a $111 million Rialto loan last year. Touchstone Commercial Partners’ Christian Diggs was appointed as receiver. — Chris Malone Méndez