Columbia Property Trust received a new notice of default tied to a $1.7B loan secured by a portfolio of office properties including 650 California St., the San Francisco Business Times reported.
:quality(75))
The debt, which matured July 9 after a prior default and extension, is backed by seven office buildings nationwide. Lenders including Goldman Sachs Group, Citigroup and Deutsche Bank AG allege the borrower failed to repay the loan, triggering the default nearly six months later.
According to the notice, the outstanding balance has climbed to more than $1.9B, and lenders signaled that foreclosure could be pursued if the debt isn’t resolved. Notes sent to CMBS bondholders in December indicate lenders have issued required notices while also engaging in discussions with Columbia about potential alternatives.
Columbia Property Trust didn’t respond to a request for comment.
In addition to 650 California, the portfolio includes:
229 W. 43rd St., the historic 16-story, 934K SF office tower in the Theater District of Manhattan that was home to The New York Times until 2007.
245-249 W. 17th St., two interconnected buildings totaling 281K SF that are home to X's offices in Manhattan's Chelsea neighborhood.
315 Park Ave. S., a 332K SF tower in Manhattan that was home to the first Amazon Go store in the city.
201 California St., a 259K SF, 17-story office tower at the corner of California and Front streets in San Francisco.
116 Huntington Ave., a 272K SF office building topped with an oculus window in Boston.
95 Columbus, a 19-story, 629K SF office tower off Christopher Columbus Drive in Jersey City.
In July 2024, Columbia Property Trust executed four lease extensions and expansions totaling 79K SF at 650 California St., lifting the asset’s occupancy to 90%. Columbia negotiated new loan terms in May 2024 with its lenders, Goldman Sachs Group, Citigroup and Deutsche Bank AG. The REIT received an extension on the loan’s maturity date through July 2025 with a six-month extension option.
The default comes as the portfolio’s valuation has taken a hit, falling from $2.27B in 2021 to $1.25B. The appraised value of 650 California St. dropped from $79M in 2021 to $350M.
Columbia purchased the 470K SF office building for $309M in 2014. It originally defaulted on the loan in January 2023.
While the $1.7B financing covers assets in multiple markets — including 201 California St. in San Francisco, three buildings in Manhattan, one in Boston and one in New Jersey — no public notices of default had been recorded for the six other properties as of Dec. 24.
UPDATE, JAN. 7, 4:13 P.M. PT: This story has been updated to include details about the properties in the portfolio.
)
)
)
)
)
)
)
)
)
)
)
)