• Confederation Life held mortgages on three vacant office/R&D buildings in Moffett Park.
• The borrower was “under water” and the buildings needed significant upgrading prior to marketing and leasing. A Notice of Default had been filed, but Confederation Life did not proceed with foreclosure.
• Orchard Investors acquired the Note from Confederation Life at a significant discount, then proceeded with foreclosure to gain title to the assets.

RESULTS

• Orchard Investors executed a capital plan for renovation of the three buildings, including demolition of older, cluttered interiors; voluntary seismic upgrades; new lobbies; paint and carpet, and upgraded landscaping.
• The buildings were subsequently leased at rates significantly higher than proforma to tenants including Honeywell, QuickLogic, and Axis Systems.
• Orchard Investors proceeded to trade the Honeywell building for the land that would become Orchard Business Centre, Santa Clara, and operated the other two buildings until sale in 2005.