Metropolitan Life Insurance Co has foreclosed a five-building office complex Stoneridge Corporate Plaza, near Stoneridge mall in Pleasanton, Alameda County, California. The foreclosed office complex is one of the most prominent projects in East Bay—a part of the San Francisco Bay Area in California.
According to commercial real estate brokers in Pleasanton, commercial office complex development in the area has still potentials despite of a major foreclosure, but still, the foreclosure of Stoneridge Corporate Plaza mirrors the still-weak commercial real estate value and market within the district.
Metropolitan Life Insurance only values the office complex at $69.1 million, which is 19 percent lower than the original loan amount the company has loaned for the property in 2007.
According to a principal at a commercial realty brokerage firm Grubb & Ellis, the office complex caught up with the country’s decline on commercial real estate, and most of the same properties in the area are also experiencing some financial problems, and Metropolitan Life will most likely wait for the market to liven-up a bit before unloading the property.
Plus, there is been swings in office deals that are happening in Tri-Valley market that is outside the county, which can also bring several companies near the Bay Area.
According to Tom Maloney, a broker from Jones Lang LaSalle who handled the lease between the office complex and with the telecommunications giant—Ericsson, which recently signed a contract for an expansion of its previously leased 28,000 square feet to 42,000 square feet in Stoneridge Corporate Plaza.