L
akeside Group and Rubicon Point Partners have acquired a 15-story office building near Downtown Oakland through a deed-in-lieu of foreclosure. The property, located at 180 Grand Avenue, was purchased for 75% of its original sale price seven years ago. The investors bought the troubled $95 million loan tied to the property in August for $30.2 million.

    The building, which spans 279,700 square feet and has a 370-slot parking garage, was previously owned by Harvest Properties and AXA Investment Managers. It was surrendered to the lender after Harvest defaulted on loan payments. The property is located between Uptown and Adams Point, near Lake Merritt, and was 72% occupied at the time of the sale.

    Lakeside Group's managing partner, Isaac Abid, stated that the acquisition allows them to execute their business plan for the building and enhance its existing features. This marks one of Lakeside's first large purchases since its founding in February by Abid, who previously worked with HP Investors.

    The deal may help reset office values around Downtown Oakland, where office vacancy rates are high. Colliers reported a 21.4% office vacancy rate in the city last month, while other analysts have placed the rate at 29.7%. Office landlords in Oakland have reduced rents in response to the shift to remote work.

    Rubicon Point Partners has also faced investment challenges, including surrendering an office building in San Francisco's Civic Center after defaulting on a $42 million loan.