Another one bites the dust....

Posted by Expert Gadget Reviewer on Thursday, 15 April 2010

Anyone who has journeyed south from Walnut Creek past Pleasanton has passed the 5 building Stoneridge Corporate Plaza complex (off to the right of I-680 southbound). This iconic east bay office complex is the latest property to sink into default, a continuing sign of the on-going struggle of commercial real estate.

The owners of the complex, Teachers Insurance & Annuity Association, has decided to walk away from the loan, commenting "We have decided not to make any additional payments on an outstanding mortgage loan at Stoneridge Corporate Plaza...The decision to halt mortgage payments was "made in line with our responsibility to seek what we believe are the most attractive long-term investment opportunities for our clients" said Abby Cohen, a spokeswoman for the New York City based Association.

Stoneridge Corporate Plaza is just the latest in a number of "Marquee" east bay properties to fall into default. As documented in this blog, the current wave of defaults is a necessary "cleansing" process for the market. New ownership will allow the property to become competitive by providing lower asking rents, providing Tenant Improvement funds (TI's) to entice new tenants, and by moving off the unofficial "black-list" of properties. The "black-list", is made up of commercial properties which brokers steer their clients away from, because of concerns about the financial stability of  ownership.

Thanks to the Contra Costa Times for contributing to this posting.