Polidev Buys Oakland Building for $12M

Polidev International a San Francisco based company, backed by Istanbul-based investors swooped up on another distressed Bay Area property. The acquisition for $12 was done last week Friday June 11th which brought their weekly purchases to two. The latest at 7700 Edgewater Park Plaza a four-building 204,000 square foot property in Oakland off Hegenburger near the Oakland airport. The previous owner was Tiburon Capital, although Polidev negotiated directly with the bank JP Morgan which had a loan outstanding on the building. The property was in default and the previous owner had a $13.3 million first mortgage on the asset. The property is 50% vacant with Girl Scouts of America being the anchor tenant. Grubb and Ellis who represented the seller said the campus suffered from having an absentee owner for most of the past year and no leasing broker. The leasing broker was quoted saying “this is a small tenant building that requires hands-on management. It was simply poorly managed by the previous owner”. Polidev picked up the property for about half of what other properties in the Hegenburger Road sub-district are trading for. Polidev bought the property for $60 bucks a square foot, where other properties in the area were trading at $110-$125 a square foot in 2007 and the first half of 2008. Look for more news soon on another Polidev acquisition as they seem to have a appetite to purchase.