Cerberus’s investment in a seven-story, 400,000-plus square foot office building in Northern California followed a default on the property’s loans that left the building with a significant outstanding mortgage balance.
Cerberus’s real estate team carefully analyzed and determined the value Cerberus could add to the property, which was located in a highly desirable, urban location popular with both technology startups and well-established corporations. The Firm’s deep understanding of the local property market and investments of both capital and real estate management expertise enabled a strong turnaround for the property.
With a reduced debt burden, prime location and a recently completed $18.4 million renovation, the commercial space was well positioned to rebound. Following Cerberus’s investment, tenant satisfaction increased alongside the property’s enhanced financial health, and Cerberus’s property management improved cash flows and occupancy rates. Eighteen months after Cerberus’s initial investment, the property had recovered its market value and was sold.