Columbia Property Trust Modifies $1.8B Loan After Multiple Defaults

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.

Courtesy of Vantage Point Photography/Jeff Peters
650 California St. In Downtown San Francisco

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.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Hudson Pacific's Historic San Francisco Conversion Project Gets Approval

FIRST DRAFT LIVE: Why Sun Belt Multifamily Giant Cortland Is Moving Its Money North

Data Centers Fuel Busiest Industrial Market Since 2022

Treasury Introduces Rule Blocking Big Investors From Bulk-Buying Homes

'Illegitimate' Or 'Leveling The Playing Field'?: Why Habitability Cases Are Surging In Eviction Court

Walker & Dunlop Execs On Dealmaking Volatility, Data Center Risks, Housing

Hines Closes $591M Multifamily DST Offering

Kroger Plans 3 New Store Formats, 110 New Locations In Bid To Boost Sales

CBRE Leans On Data Center Business As Higher Rates Squeeze Capital Markets

Blackstone Writes Down Real Estate Values But Remains Bullish On Data Centers

Debt Flood Shrinks Bank OZK's Real Estate Book Faster Than Planned

The Governor Races And Referendums Where Housing Is On The Ballot