{"id":371874,"date":"2026-06-23T19:51:11","date_gmt":"2026-06-23T19:51:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/371874\/"},"modified":"2026-06-23T19:51:11","modified_gmt":"2026-06-23T19:51:11","slug":"kkr-tmg-partners-lose-oakland-office-tower-to-foreclosure","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/371874\/","title":{"rendered":"KKR, TMG Partners Lose Oakland Office Tower to Foreclosure"},"content":{"rendered":"

Heitman Capital Management has seized a 535,000-square-foot building that serves as a hub for Clorox in downtown Oakland after foreclosing on a $239.6 million loan.\u00a0<\/p>\n

The Chicago-based real estate management firm took control of the 24-story building at 1221 Broadway but retained a former co-owner as its operating partner, the San Francisco Business Times reported<\/a>.<\/p>\n

Private equity firm KKR and TMG Partners bought the building in 2019<\/a> for $255.34 million, or $477 per square foot, and it was among the largest commercial real estate deals in Oakland.<\/p>\n

New York-based KKR borrowed $239.6 million from Heitman<\/a> for the purchase and later defaulted on the loan. It\u2019s not clear what role TMG, listed as a co-owner, played in the default.<\/p>\n

TMG, based in San Francisco, will stay on as manager of the office tower, with plans to renovate the property to draw new tenants.\u00a0<\/p>\n

The glass-covered trophy tower, designed by Cesar Pelli in 1976, includes ground-floor shops and restaurants at City Center.<\/p>\n

Clorox, the building\u2019s anchor tenant, leases half of the building in a lease that expires next year. It\u2019s not clear if Clorox renewed that lease, and if so, how much space it kept.\u00a0<\/p>\n

The company put four floors of its headquarters up for sublease<\/a> in 2022, and in 2021 gave part of its corporate offices to FiveTran in a direct lease with the landlord.\u00a0<\/p>\n

Other anchor tenants include Union Bank, Brown and Toland and WCIRB.\u00a0<\/p>\n

TMG\u2019s renovation plans include upgrades to the main building systems, as well as strategic re-leasing, according to its website.<\/p>\n

Clorox leased its headquarters in 2012, after selling the building to San Diego-based Westcore Properties for $110 million. The building was sold to Swiss-based UBS in 2015 for $165 million, then to KKR and TMG.<\/p>\n

Since the pandemic, building vacancies rose and property values plummeted in Oakland, leaving landlords unable to pay off debts. The Clorox building foreclosure comes after a slew of Oakland office properties were either handed to their lenders or sold at firesale prices.<\/p>\n

Last month, the 206,000-square-foot Edgewater Park Plaza office park at 7700 Edgewater Drive went into foreclosure after the previous owner, a former HP Investors affiliate, defaulted on a $21.4 million loan.<\/p>\n

In January, Deutsche Bank seized three office buildings<\/a> from Starwood Capital at 2100 Franklin Street, 2101 Webster Street and 1901 Harrison Street through a deed in lieu of foreclosure. The bank then tapped Harvest Properties as an operating partner. <\/p>\n

\u2014Dana Bartholomew<\/p>\n

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Clorox to sublease four floors at Oakland headquarters<\/p>\n

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Starwood Capital forfeits Oakland office buildings to Deutsche Bank<\/p>\n

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More Oakland offices seized by lender as East Bay distress grows<\/p>\n

\t\t\t<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Heitman Capital Management has seized a 535,000-square-foot building that serves as a hub for Clorox in downtown Oakland…\n","protected":false},"author":2,"featured_media":371875,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[150671,143,145,144],"class_list":["post-371874","post","type-post","status-publish","format-standard","has-post-thumbnail","category-oakland","tag-kkr-tmg-oakland-office","tag-oakland","tag-oakland-headlines","tag-oakland-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/371874","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=371874"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/371874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/371875"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=371874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=371874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=371874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}