Bay Space college property jolted by mortgage default goes up on the market

Holy Names College at 3500 Mountain Boulevard in Oakland.

OAKLAND — A personal college within the Bay Space that’s been jolted by monetary woes together with an actual property mortgage default has been formally put up on the market even because it prepares to shut its doorways this yr.

Holy Names College, together with the buildings and the Oakland web site’s land, has wound up on the gross sales block in a property providing that’s being dealt with CBRE, a business actual property agency that factors out present zoning might enable the location to be redeveloped for housing.

The 58.6-acre campus, nestled within the East Bay hills at 3500 Mountain Boulevard in Oakland, is scheduled to close down after the college yr is full this spring.

The latest amongst quite a few brutal monetary challenges that face Holy Names College was a submitting on Feb. 23 that said the school had defaulted on a mortgage whose collateral is the college’s property, together with the land and the buildings on the location.

A $49 million mortgage for the college web site was in default, in accordance with the discover that lender Preston Hole Neighborhood Capital filed on the Alameda County Recorder’s Workplace. A discover of default begins a course of that may result in the lender seizing the property via an actual property public sale and foreclosures on the mortgage.

Preston Hole, nonetheless, states that its main objective isn’t to realize possession of the college property. Lenders usually search to keep away from foreclosures as a result of they would like to not be the homeowners of actual property.

“We’re presently exploring subsequent steps for the campus, and nonetheless imagine the best and greatest use for the area is to function as a world-class college,” John Dinan, common counsel for Preston Hole Neighborhood Capital, stated in feedback supplied to this information group in early March. “We sit up for collaborating with the town of Oakland and group stakeholders to make this a actuality.”

The college and Oakland metropolis officers are looking for a approach for a college to proceed to function on the Holy Names campus as soon as the school shuts down as anticipated in Might.

CBRE actual property brokers stated it’s doable that the long run use of the college may not be as a college, as soon as a sale goes via.

Residential growth is a chance on the web site, in accordance with data in an electronic mail that CBRE supplied to this information group.

“Whereas Holy Names College seeks to draw a successor possibility, the property can proceed as an training campus or be redeveloped for residential use underneath the present Oakland Normal Plan and the California State Density Bonus program,” CBRE said within the electronic mail on Wednesday.

CBRE brokers Mike Taquino, Kyle Kovac, Joe Moriarty and Giancarlo Sangiacomo will market the property on the market from now via the tip of this yr. CBRE brokers Brad Zampa and Mike Walker will provide recommendation on the financing for any transaction.

The Holy Names College property has 15 buildings together with a performing arts middle, gymnasium, chapel, library, 30 school rooms and housing for 450 scholar beds.

“The property is located within the Oakland Hills, which is understood for its single-family properties and proximity to downtown Oakland, downtown San Francisco and UC Berkeley,” CBRE said.