{"id":256331,"date":"2026-04-07T21:09:08","date_gmt":"2026-04-07T21:09:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/256331\/"},"modified":"2026-04-07T21:09:08","modified_gmt":"2026-04-07T21:09:08","slug":"oc-office-campus-in-distress","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/256331\/","title":{"rendered":"OC Office Campus in Distress"},"content":{"rendered":"

A lender and special servicer, on behalf of commercial mortgage-backed securities holders, requested a court-appointed receiver for an Orange County office campus.<\/p>\n

The parties alleged the borrower defaulted on their loan and said the amount owed was in excess of $17 million, according to a complaint filed earlier this year. Wells Fargo originated the note, and K-Star Asset Management is the special servicer.<\/p>\n

The property in question is a three-building office park on Garden Grove Boulevard in Westminster, which saw its value decline to $16.4 million, compared to $27.7 million at loan issuance six years prior, per Morningstar Credit and Trepp recent alerts. That represents a 41 percent decrease.\u00a0<\/p>\n

The haircut came after the borrower, an entity connected to Younan Properties, defaulted on the loan, which was moved to special servicing<\/a> late last year, per Morningstar Credit and Trepp. The office campus at 5405, 5455 and 5555 Garden Grove Boulevard is around 150,000 square feet, which means a deal at its apparent value would come out to around $109 per square foot.\u00a0<\/p>\n

In an opposition to appoint a receiver, Younan Properties Chair and CEO Zaya Youna accused the plaintiff and its agents of \u201cacting in bad faith,\u201d in court documents dated late March.\u00a0<\/p>\n

\u201cNever in my decades of working in commercial real estate have I heard of a special servicer contacting a borrower\u2019s leasing agents and disclosing that a property was in special servicing as the lender\u2019s special servicer did here,\u201d he wrote. \u201cAs a result, the property has seen a marked decrease in leasing activity and faces the potential loss of current tenants.\u201d\u00a0<\/p>\n

The property\u2019s last known occupancy was 64 percent in June 2024, according to Morningstar Credit.<\/p>\n

Youna said appointing a receiver would only harm the office campus and would \u201ceffectively kill any leasing activity and drive away existing tenants.\u201d He added, if a receiver is appointed, it is likely that the entity that owns the property would be forced to file for bankruptcy.\u00a0<\/p>\n

A hearing to appoint a receiver was scheduled on Monday, but a minute order has not been issued yet. The attorney for the plaintiff declined to comment, and attorneys for the defendant did not immediately respond.\u00a0<\/p>\n

Servicer commentary via Morningstar Credit noted \u201cforeclosure is being pursued concurrently with the receivership.\u201d\u00a0<\/p>\n

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Silent distress at OC office campus<\/p>\n

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\t\t\t\t\t\t\t\t\t\t\t\t\t\"Landlord\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

Zaya Younan fights Arlington Heights office foreclosure in bizarre conundrum<\/p>\n

\t\t\t<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"A lender and special servicer, on behalf of commercial mortgage-backed securities holders, requested a court-appointed receiver for an…\n","protected":false},"author":2,"featured_media":256332,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[163,165,164,113367],"class_list":["post-256331","post","type-post","status-publish","format-standard","has-post-thumbnail","category-anaheim","tag-anaheim","tag-anaheim-headlines","tag-anaheim-news","tag-orange-county-office-campus"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/256331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=256331"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/256331\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/256332"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=256331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=256331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=256331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}