After two defaults, New York-based Columbia Property Trust has struck a deal with its lenders to restructure approximately $1.8B of debt backing a seven-building portfolio.

The June agreement will modify the debt, which is secured by buildings in San Francisco, Boston, New York and Jersey City, New Jersey, the San Francisco Business Times reported. It places the debt back in good standing and extends the maturity date to July 2028.

The debt last matured in July 2025, following a prior default and extension. At that time, lenders including Goldman Sachs Group, Citigroup, and Deutsche Bank AG said the borrower failed to repay the debt.

Prior to the agreement, lenders initiated foreclosure actions against two San Francisco properties: 201 and 650 California St. However, the foreclosures are now canceled, with Columbia having already sold 201 California St. to Ridge Capital Investors for $75M under a friendly foreclosure agreement, the San Francisco Business Times reported.

Columbia Property Trust declined Bisnow’s request to comment on the loan modification.

Meanwhile, the company, in collaboration with The Main Post, plans to invest in an upgraded amenity program and new property management at 650 California St. The building is 80% occupied in a market with a 30% vacancy rate.

“Our leasing program at 650 California has achieved tremendous recent success with rents now 30 percent higher than pre-2020,” Columbia Property Trust Head of Real Estate Ted Koltis said in a press release obtained by Bisnow. “Over the past 18 months alone, we have completed 10 deals, including 8 relocations, totaling 145K SF.”

Columbia Property Trust purchased 650 California St. in 2014 for $309M. By July 2024, the building’s occupancy was 90% after Columbia executed four lease extensions and expansions totaling 79K SF in the 470K SF building, Bisnow previously reported.

The new amenity package is slated to be unveiled sometime around Labor Day.