Case Studies > Orchard Moffett Investors – Sunnyvale, CA


Orchard Moffett consisted of three non-contiguous office/R&D buildings in Moffett Park acquired in a distress situation.

SITUATION
  • 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.

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