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