Columbia Pacific Advisors has seized nearly 3 acres approved for a 1,032-unit apartment project in West Oakland after its developer defaulted on a $6.25 million loan.
The Seattle-based investment firm took control after Panoramic Development defaulted on the loan tied to 500 Kirkham Street, next to the West Oakland BART station, the East Bay Times reported, citing public records.
The San Francisco-based developer bought the 2.85-acre site bounded by Kirkham, 7th, Union and 5th streets in 2017 for $7.1 million. Media reports also listed the buyer and developer as Panoramic Interests, owned by Patrick Kennedy, and said it paid $4.25 million.
In 2021, a Panoramic affiliate obtained a $6.25 million loan from CPIF California, a business controlled by Columbia Pacific Advisors.
The loan fell into default in March, leading to the foreclosure. The amount owed, including principal, interest, late fees and penalties, had ballooned to more than $13 million.
The project approved for the site, dubbed CitySpaces, was to include 1,032 apartments and 35,000 square feet of shops and restaurants, offices and a grocery store, including an estimated 85 affordable units. It was to replace a vacant lot.
The proposed workforce housing development was among several projects expected to transform a neighborhood between Interstate 880 and 7th Street, next to the West Oakland BART station.
Last June, Panoramic put the site up for sale after failing to find an equity partner for a project estimated in 2019 to cost $300 million, according to the San Francisco Business Times.
West Oakland’s Prescott neighborhood has attracted a wave of development interest after almost 50 years of underinvestment.
In January, Tidewater Capital filed preliminary plans for 289 apartments and 3,000 square feet of shops at 533 Kirkham Street, a block from the same West Oakland BART Station, the area slated to become a transit-oriented, live-work hub.
In addition, a trio of developers has proposed Mandela Station@West Oakland to turn the BART-owned parking lots surrounding the station into 766 apartments and 380,000 square feet of offices, labs, shops and restaurants.
— Dana Bartholomew
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