Renting Unsold Units To Avoid Foreclosure A Possibility For Oakland Condo Developer In Default

In Oakland, California, the Alameda Times Star reports:

• An upscale residential project that is one of the keys to the downtown's revival has lurched into a mortgage default and faces an uncertain future. The owner of the 901 Jefferson complex in downtown Oakland, consisting of 75 for-sale condominiums, has defaulted on a $26 million construction loan issued in 2006, Alameda County property records show.

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• "The downturn in the economy, plus the downturn in the condominium market, has made selling that property as condos not feasible," said Arthur Evans, president and chief executive of A.F. Evans. It's possible the lender, Keybank National Association, could attempt to seize the property through a foreclosure of the construction loan.

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• One backup plan would be to rent the units and sell them when the market bounces back. A.F. Evans is also attempting to find a buyer for the property, which is completed but remains vacant.

For more, see Upscale Oakland project in trouble.