SUNNYVALE — A big office complex in Sunnyvale has staggered into default on its loan, a financial setback that suggests post-coronavirus maladies still afflict the commercial real estate market in the Bay Area.
Horizon Sunnyvale, a revamped office center on Oakmead Parkway, is in default on its real estate mortgage and could face a loan foreclosure, documents on file with the Santa Clara County Recorder’s Office show.
The office complex consists of four interconnected buildings and totals 181,200 square feet, according to a marketing flyer distributed by property owner Embardero Capital Partners and commercial real estate brokerage Newmark.
The financing that has become delinquent totals $63.5 million and was provided by lender LoanCore Capital REIT in 2019, according to the county’s real estate records.
The financial difficulties serve as a fresh example of the unforeseen and cataclysmic economic woes spawned by the onset of the coronavirus in early 2020.
Embarcadero Capital bought the big three-story office complex in 2016. In 2020, Embarcedro Capital, one of the Bay Area’s top-notch and veteran real estate firms, launched a complete modernization of the buildings.
The revamp of the Sunnyvale office center occurred at a time when coronavirus-linked fears prompted a flurry of companies to rethink how office space should be structured.
The modernized campus features flexible spaces and offices with easy access to outdoor areas to promote wellness and a healthy work environment. The property is geared toward tech companies seeking creative places for people to work.
