Broadreach Defaults on Mountain View Property Loan

By Sharon Simonson

Union Bank has filed a notice of default regarding a more than $60 million mortgage against a prominent Mountain View office park owned by Palo Alto real estate company Broadreach Capital Partners.

The bank is owed not quite $62 million, according to The Blue Sheet, a daily report of all notices of default filed in Santa Clara County. The loan, extended in October 2007, became delinquent at the beginning of November.

The multi-building portfolio fronts U.S. 101 immediately south of the Rengstorff Avenue exit in Mountain View. The site is adjacent to the Google Inc. campus in the Shoreline district and has ample highway frontage.

It was assessed at less than $40 million in 2010.

At the same time, Montreal-based Otera Capital is accepting offers on the sale of a defaulted loan backed by the 197,000 square-foot 550 Kearny St. office building in San Francisco’s Financial District, said Francois Gaboury, director of communications for Otera. The property is identified as a Broadreach holding on the Broadreach Web site. The office building was first constructed in 1957 and renovated in 1982. Otera is a subsidiary of Montreal-based Caisse de dépôt et placement du Québec, a leading institutional fund manager in Canada. Broadreach is the real estate investment company formed in 2002 by the former executives of Silicon Valley’s famed Spieker Properties Inc. Spieker, a real estate investment trust, was merged into the former Equity Office Properties Trust in 2001 in a $7.3 billion transaction.

Broadreach also has offices in San Francisco, Los Angeles, St. Louis and Edwards, Colo., according to its Web site.

Ned Spieker, the former chairman of Spieker Properties, was named to the Equity Office board as part of the merger’s outcome, as were Craig Vought and John Foster, the former Spieker co-chief executives.

Spieker is now a special advisor to Broadreach. Foster and Vought are managing directors in the company’s Palo Alto office.

Foster did not return a telephone message left just before the close of business Dec. 15.

West Coast Commercial Real Estate News