San Jose-based lender Avidbank has sold a newly built Mission Bay condominium complex that it foreclosed in August, The Real Deal has learned.
The bank offloaded the asset, located at 603 Tennessee Street, in a $14 million deal, property records show. The buyer is HSH Holdings, a Sunnyvale-based entity managed by Ed Ali Bozorghadad. The deal closed Oct. 27.
The transaction comes just months after Sol Properties, the previous owner of the 24-unit complex, surrendered the asset. According to an August deed that conveyed ownership to Avidbank, the unpaid debt on the condominium complex had grown to $15.4 million. Sol Properties secured the original $12.4 million loan on the asset in June 2018.
The property is a six-story, 24,000-square-foot building that has sat empty despite construction finishing more than two years ago, according to a previous report from the San Francisco Chronicle.
Alexander Kolovyansky, the listing agent for the property, previously told the San Francisco Standard that the development was hurt by delays in the permitting process. Sol expected the certificate of occupancy for the project in 2021, but received approvals earlier this year.
“It’s a very unfortunate state of affairs, and they’re far from the only developer that’s having problems due to San Francisco policies mixed with federal policies impacting the market,” Kolovyansky said at the time.
Sol Properties initially tried to sell individual units to residents before marketing the entire property to investors. The firm had set the initial asking price at $19 million. After several price cuts, Sol’s last asking price for the asset stood at $16.2 million.
The deal adds to the churn of distressed assets in San Francisco. In August, Ballast Investments won an auction for $800 million in residential loans backed by 2,149 San Francisco apartment units. The properties were previously owned by Veritas Investments, one of the city’s largest landlords. Earlier this month, CrossHarbor Capital Partners acquired 55 New Montgomery Street, a 100,200-square-foot SoMa office building, through a foreclosure auction.