G
erding Edlen has relinquished a 24-story apartment building to its lender after failing to pay a $90 million loan on the property. The developer, now known as Edlen & Company, signed a deed-in-lieu-of-foreclosure, giving up ownership of the 206-unit tower at 1700 Webster Street in Downtown Oakland. The lender, Union Labor Life Insurance, took control of the ZO Oakland Apartments located at the intersection of Webster and 17th Streets.
The affiliate of Gerding Edlen developed the tower in 2019, marking the first high-rise construction in Oakland since 2008. In 2020, the unidentified affiliate secured a $90 million loan from The Union Labor Life Insurance. When Union Labor Life took back the property, the outstanding balance was $89.8 million.
The current occupancy status of the apartment complex is unknown, and it is unclear what the life insurance firm intends to do with the residential tower. Typically, lenders prefer to find new owners for properties seized due to non-performing or delinquent loans, according to reports.
The ZO Oakland Apartments boasts 175,100 square feet of living space and features a rooftop deck with a pool, indoor and outdoor lounges, an outdoor terrace with fire pits and barbecue grills, a fitness center, a play area for pets, and a pet spa. The ground floor of the building also contains 2,200 square feet of retail space, as listed on LoopNet.
Rent prices for the apartments range from $1,950 for a studio to $3,900 per month for a two-bedroom unit, according to Apartments.com.
Gerding Edlen was founded in 1996 by Mark Edlen and the late Bob Gerding. In 2021, the company was acquired by its employees and rebranded as Edlen & Company, as reported by the Portland Business Journal. Its investment management arm was separated into a separate entity called Green Cities.
