OAKLAND — A century-old high-rise in Oakland has been seized by the property's lender. The deal is a grim reminder of the issues plaguing the Bay Area's industrial real estate sector.
The Leamington, an 11-story landmark high-rise built a couple of century ago in downtown Oakland, was repossessed by its lender on account of a failed loan totaling $35.5 million, as of Jan. 6 Documents filed with the Alameda County Recorder's Office show.
CIT Bank, acting through a subsidiary, wrested ownership of the property from a subsidiary of Harvest Properties, which purchased the constructing in 2015 for $19.1 million, county records show.
Today, the tower houses offices and ground-floor retail space at 1814 Franklin in Oakland. Originally a hotel, the Leamington opened its doors almost a century ago and quickly became certainly one of the town center's hotspots.
“The Leamington Hotel was considered an architectural masterpiece when it opened its doors to traveling businessmen in 1926,” explained a Post on local wiki Website. “The luxurious Spanish-style hotel was designed by architect WH Weeks.”
In 1987, the tower, positioned on the corner of Franklin and nineteenth Streets in Oakland's trendy and vibrant Uptown neighborhood, was designated an Oakland landmark.
“Opulent social gatherings for wealthy Oakland residents were among the frequent events at the Leamington,” based on a Local Wiki web post.
According to several web posts, famous aviator Amelia Earhart once occupied an office in The Leamington when she was planning her final and fatal air trip.
CIT Bank repossessed the tower through a foreclosure deed. This is a streamlined process for a lender to seize title to a property with a delinquent loan.
According to real estate records, the bank's subsidiary paid $34.5 million for the tower, which could be lower than the loan amount.
Oakland's office market weakened sharply in late 2024, driven by rising vacancies downtown and a nosedive in office values in the town, Colliers, a industrial real estate firm, reported.
According to the brand new Colliers report, well over 1 / 4 of the office space within the East Bay city's downtown core is vacant or being subleased by a tenant who doesn't wish to occupy the positioning.
In the fourth quarter of 2024 from October to December, downtown Oakland's office emptiness rate was 26.9%. In the third quarter of 2024 from July to September, the emptiness rate was 23.8%, based on Colliers estimates.
The Leamington is just the newest example of the difficulties facing Oakland's office market.
The expected next step for the landmark tower is for CIT Bank to seek out a brand new owner for the tower. Banks typically aim to maintain foreclosed properties on their books for as short a time as possible.
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