Finance  ·  Distress

Greenlaw Partners, Walton Street Capital Delinquent on $63M Loan: Report

Owners put the SoCal office tower the loan is tied to up for sale last November, asking $100 million

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Greenlaw Partners and Walton Street Capital are tardy on a loan tied to an office tower in Orange County, Calif.

The firms are 30-days delinquent on a $62.7 million loan backed by 1 City Boulevard West, in the city of Orange. The loan has since been sent to special servicing, The Real Deal reported, citing data from Trepp

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Greenlaw Partners and Walton Street, which purchased the property in 2013, did not respond to requests for comment. The 18-story, 350,000-square-foot building, known as City Plaza, is empty and fully available for lease, according to a listing from CBRE (CBRE)

TPG Real Estate Finance Trust originated the loan in 2019 and packaged it into a commercial loan obligation, and the loan has a rate cap of 5.55 percent, per TRD, which cited Morningstar. It was set to mature in August 2021 but the borrowers obtained three one-year extensions.

The firms put the tower up for sale early last year with an asking price of $100 million, or roughly $285 per square foot, per TRD.

Large office towers in Orange County have traded at steep discounts lately, according to a third-quarter office market report by CBRE. The 314,000-square-foot tower at 2050 Main Street in Irvine and the 394,000-square-foot office campus at 7777 Center Avenue in Huntington Beach both sold at 47 percent and 66 percent discounts, respectively, per the report. Irvine-based Greenlaw purchased the Irvine tower for $58 million last month, per TRD.

Meanwhile, Greenlaw sold a 4.9-acre office property in Santa Ana for $14.8 million back in September. The new owners, Terreno Realty, planned to convert the site into an industrial space. 

Nick Trombola can be reached at NTrombola@commercialobserver.com.