CONCORD — A Concord office complex that was shoved into receivership due to its failed loan was bought at a discount, suggesting regional commercial real estate values remain locked in a nosedive.
Two office buildings on Grant Street were purchased for $45.3 million, documents filed on Feb. 10 with the Contra Costa County Recorder’s Office show.
That is a 69% plunge from the $146.1 million that the sellers paid in 2018, this news organization’s review of the grant deeds for the two transactions shows.
AXS Opportunity Fund, a Beverly Hills-based investment firm that acted through an affiliate, bought the buildings, which total a combined 477,500 square feet, according to a marketing brochure.
One building is a 13-story office tower at 1655 Grant St. and totals 292,900 square feet. The other is a four-story office site at 1755 Grant that totals 184,600 square feet.
Stapleton Group, a court-appointed receiver, conducted the property sale. The buildings were shoved into receivership after the prior owner, an entity affiliated with Partner Group and Swift Realty Partners, became delinquent on a loan for the site.
The drop in the price for the buildings hints that the property might suffer a drop in its assessed value.
If real estate values falter in a region, the decline could imperil a crucial revenue stream from property taxes for cities, counties, regional agencies, and school districts.