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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.
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.
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