East Bay Office Group
Oakland Bank Owned Property For Sale
Oakland Bank Owned Property
Earlier this month Ben and I got the listing for an interesting bank owned property located at 1671 8th St in West Oakland. The property is a mixed use retail building with a second story apartment. This REO is 8,220 square feet on an 11,700 square foot lot. The location is well suited for a retail or restaurant establishment and the second floor apartment can be occupied by an owner/operator or leased out for income. The proximity to the West Oakland BART Station and its planned expansion makes this property ripe for appreciation. To find out more information please view the flyer or contact us at (510)903-7600. We frequently track commercial properties that have received Notices of Default and can help locate opportunities for investors or users before the properties become REOs.
Bank Failures Affect Commercial Real Estate
As the national residential real estate market starts its long march out of the current depressed state the disaster in the commercial real estate market is just beginning. Unfortunately this appears to be a long process.
Banks are hesitant to foreclose on commercial properties and when they do they are having a tough time valuing the assets. In our East Bay commercial real estate market, and certainly in the Oakland submarket, we are seeing banks and troubled sellers having to look at sales comps for office buildings that are 12 to 24 months old because those are the most recent comps. The big problem is that the market for Oakland office buildings has dropped significantly since those sales occurred and it is taking the banks quite a while to come to this realization which stalls the entire process.
Many banks are being taken over by the FDIC and their assets subsequently sold to other banks. Click the FDIC link to see an interesting article about how many banks have failed.
Ben and I have a client (Client X) whose case is an interesting demonstration of this phenomenon. Client X sold a commercial property to a developer who planned to build housing. This buyer missed the market for redevelopment and had the property taken back by the bank. Client X made an offer and was one of several suitors expecting to receive a counter offer from the bank. Before the counter offer could be made the FDIC shut down the bank and sold all of the assets to a second bank. Her we sit four months later still waiting on a response to the offer. This is hardly the only case we are seeing in the East Bay commercial real estate market. For more information regarding the state of the Oakland office market and the East Bay commercial real estate market please contact Dave McCarty (510)903-7601 or Ben Jones (510)903-7606.
