The Edgewater Park Plaza office complex at 7700 Edgewater Drive near Oakland International Airport is heading to a foreclosure auction, marking another setback for HP Investors, which acquired the property in 2022 for roughly $36 million.
The two‑story, 207,000‑square‑foot building sits on 10.6 acres and was once considered a prime asset in Oakland’s industrial‑office corridor, the San Francisco Business Times reported. However, rising vacancies and post‑pandemic market headwinds have eroded its value, pushing the property into distress.
HP Investors, led by Sumeet Parekh, purchased the site from California Capital and Investment Group for about $172 per square foot, making it one of the largest East Bay transactions of 2022. The complex, located across from the Oakland Coliseum and minutes from the airport, was initially positioned as a redevelopment opportunity for logistics or flex‑office tenants. Yet, with office demand weakening and finance costs climbing, the property’s performance deteriorated, leading to a lender‑initiated sale.
The January notice of default indicated HP Investors owed nearly $1 million in rent payments. East West Bank was the lender on the property.
The auction underscores the broader East Bay office market correction, where vacancy rates have climbed above 15 percent, and asking rents have slipped amid slow return‑to‑office trends. HP Investors has already lost several Oakland assets, including 1700 Broadway, which was seized by lender Bank of Sierra in 2024. HP Investors bought the 10-story office building for $13.3 million in 2017. HP Investors also lost 2001 Broadway, the historic I. Magnin building, which traded for $4.5 million, a 76 percent decline from its prior valuation.
Current high-profile headaches in the market include Highbridge Equity Partners’ Tribune Building and 1500 Broadway.
The Edgewater property’s foreclosure follows similar distress among mid‑tier office owners in the Bay Area, where refinancing challenges and declining occupancy have triggered a wave of auctions and note sales. Despite its proximity to major transit and industrial hubs, Edgewater’s size and vintage construction have limited its appeal to new tenants.
– Joel Russell
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