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Harvest Properties and HP Investors default on East Bay office debt

Harvest falls behind on $12M mortgage in Berkeley; HP defaults on $10M loan in Oakland

Harvest Properties and HP Investors each default on loans tied to East Bay offices
Harvest Properties' John Winther and HP Investors' Sumeet Parekh with 2168 Shattuck Avenue and 1700 Broadway (Harvest Properties, HP Investors, Google Maps, Getty)

The owners of two East Bay office buildings face foreclosure after defaulting on multimillion-dollar loans tied to both properties

An affiliate of Oakland-based Harvest Properties and Miami-based Independencia Asset Management have defaulted on an $11.8 million loan linked to a three-story office building at 2168 Shattuck Avenue in Downtown Berkeley, the San Jose Mercury News reported. JPMorgan Chase is the lender.

An affiliate of San Diego-based HP Investors has also defaulted on a $10 million loan tied to a 10-story office tower at 1700 Broadway, in Oakland’s Uptown, according to the newspaper. The lender is Bank of the Sierra.

In 2018, Harvest and Independencia paid $19.7 million for the 36,000-square-foot office building in Berkeley.

At the time, Harvest said it was “very optimistic” about the Downtown Berkeley office market.

In 2017, HP Investors paid $13.3 million for the 31,500-square-foot office tower in Oakland, which includes 3,500 square feet of ground-floor shops and restaurants. 

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When each landlord fell delinquent from their respective loans was not disclosed.

Vacancy caused by a broad shift to remote work, coupled with higher interest rates, has devalued buildings and made financing for a growing number of landlords difficult. As a result, the number of defaults and building seizures has increased across the Bay Area and beyond.

In December 2022, Harvest Properties won approval to add a 210,000-square-foot, six-story office building to its three-building life sciences campus in Emeryville. 

In October 2022, HP Investors bought the 207,800-square-foot Edgewater Park Plaza office complex near Oakland Airport for $35.7 million, or $172 per square foot.

— Dana Bartholomew

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Companies and People
Harvest Properties and Independencia Asset Management; HP Investors
Tags
Loan default