OAKLAND — A lender has grabbed ownership of a big apartment complex in Oakland, an ominous setback that suggests financial cracks have begun to materialize even in the Bay Area’s residential markets.
The Logan, a 204-unit multifamily residential property in North Oakland, is now owned by an affiliate of Brookfield Property Partners, whose owner and sibling companies own office, retail, residential, industrial and hotel properties in the United States, Canada, Brazil, Australia, Europe and Asia.
The Logan, a six-story, 204-unit apartment complex at 5110 Telegraph Avenue in north Oakland, in a May 2024 image capture. (Google Maps)
Brookfield Property’s affiliate took ownership of the apartment complex through a deed in lieu of foreclosure, according to documents filed on Nov. 27 with the Alameda County Recorder’s Office.
A deed in lieu of foreclosure allows a lender to use a streamlined process for the seizure of a property whose loan is delinquent or has ceased to produce income for the financier.
The failure of The Logan’s loan offers a disturbing signal that this region’s residential markets aren’t immune from the financial and economic maladies that have infected the Bay Area’s office, hotel and retail markets.
In September 2024, Bayview, a 186-unit apartment complex in Emeryville, was seized by its lender CIM Group through a similar deed in lieu of foreclosure procedure.
The seller was an affiliate of Rad Urban, an Oakland-based housing development firm that used modular construction techniques to build the residential units for The Logan.
Rad Urban’s affiliate, whose principal executives include Randall Miller, bought the Oakland property at Telegraph Avenue and 51st Street in 2017, paying $15.5 million for the site.
The development also obtained a $68.3 million loan from Husky Finco at the time of the purchase. That loan helped to finance the construction of the apartment complex.
In 2021, the loan was assigned to ING Capital, which provided “up to $100 million” in financing for the RAD Urban affiliate and its apartment complex in North Oakland’s Temescal district.
This year, ING Capital transferred the failed $100 million loan to an affiliate of Brookfield Property Partners. The affiliate, which specializes in owning apartment properties, bought The Logan apartment complex in Oakland through the deed in lieu of foreclosure.
The Logan apartment complex also includes 35,000 square feet of ground-floor retail. The commercial spaces feature a Whole Foods 365 grocery store.
Residents at The Logan also have access to a rooftop farm and gardens that total 25,000 square feet.