Oakland tower foreclosed
What happened
A landmark Oakland office tower changed hands after a rapid foreclosure, signaling ongoing distress in East Bay office fundamentals and a value reset for legacy assets. The building was acquired by a veteran operator in a quick transfer that highlights both deep discounts and the selectivity buyers must bring to turnaround plays. Brokers should note the sale as a live example of distressed pricing and repositioning opportunity in Oakland. (mercurynews.com)
Why it matters
The Leamington, an 11‑story historic office tower at 1814 Franklin Street in downtown Oakland, sold for $14.4 million to an affiliate of local investor Edward Hemmat. (therealdeal.com) That price is roughly 58.3% below a $34.5 million valuation the property carried when CIT Bank took control, meaning the sale reflects a steep value reset and a sub-$200 per‑square‑foot traded basis in this case (about $121 per square foot by the reporting math). (therealdeal.com) The lender recorded a deed‑in‑lieu of foreclosure in January 2025 — a deed‑in‑lieu is when an owner hands the property title to the lender to avoid a public foreclosure auction — which is why the bank held the asset before the Hemmat affiliate purchased it. (multifamilydive.com) Public records and commercial listings show the Leamington’s reported size varies by source (roughly 119,000 rentable square feet on some listings and about 152,000 on others), and the asset includes ground‑floor retail and historic landmark designations that complicate repositioning and per‑square‑foot comparisons across databases. (loopnet.com) (propertyshark.com) Market reports show why lenders and opportunistic buyers are active: Colliers reported an overall Oakland vacancy rate of 21.7% in Q4 2025, Cushman & Wakefield’s East Bay marketbeat put East Bay/Oakland vacancy at 27.1% for the same quarter, and CBRE reported Oakland overall vacancy near 25.5% — elevated vacancy that weakens pricing for legacy office assets. (colliers.com) (cushmanwakefield.com) (cbre.com) Lenders have been the sellers or interim owners on multiple downtown towers (for example, a Deutsche Bank affiliate recorded deed‑in‑lieu transfers on three large towers earlier in 2026), and the Leamington trade shows individual local investors and LLCs are also stepping in to buy single‑asset distress at steep discounts. (therealdeal.com 1) (therealdeal.com 2) Records list Edward Hemmat as manager or registered agent on multiple California LLC filings tied to Oakland properties, illustrating the kind of locally organized buyer entity that has been active acquiring discounted legacy assets in recent months. (bizapedia.com 1) (bizapedia.com 2)
Key numbers
- (mercurynews.com) The Leamington, an 11‑story historic office tower at 1814 Franklin Street in downtown Oakland, sold for $14.4 million to an affiliate of local investor Edward Hemmat.
Quick answers
What happened in Oakland tower foreclosed?
A landmark Oakland office tower changed hands after a rapid foreclosure, signaling ongoing distress in East Bay office fundamentals and a value reset for legacy assets. The building was acquired by a veteran operator in a quick transfer that highlights both deep discounts and the selectivity buyers must bring to turnaround plays. Brokers should note the sale as a live example of distressed pricing and repositioning opportunity in Oakland. (mercurynews.com)
Why does Oakland tower foreclosed matter?
The Leamington, an 11‑story historic office tower at 1814 Franklin Street in downtown Oakland, sold for $14.4 million to an affiliate of local investor Edward Hemmat. (therealdeal.com) That price is roughly 58.3% below a $34.5 million valuation the property carried when CIT Bank took control, meaning the sale reflects a steep value reset and a sub-$200 per‑square‑foot traded basis in this case (about $121 per square foot by the reporting math). (therealdeal.com) The lender recorded a deed‑in‑lieu of foreclosure in January 2025 — a deed‑in‑lieu is when an owner hands the property title to the lender to avoid a public foreclosure auction — which is why the bank held the asset before the Hemmat affiliate purchased it. (multifamilydive.com) Public records and commercial listings show the Leamington’s reported size varies by source (roughly 119,000 rentable square feet on some listings and about 152,000 on others), and the asset includes ground‑floor retail and historic landmark designations that complicate repositioning and per‑square‑foot comparisons across databases. (loopnet.com) (propertyshark.com) Market reports show why lenders and opportunistic buyers are active: Colliers reported an overall Oakland vacancy rate of 21.7% in Q4 2025, Cushman & Wakefield’s East Bay marketbeat put East Bay/Oakland vacancy at 27.1% for the same quarter, and CBRE reported Oakland overall vacancy near 25.5% — elevated vacancy that weakens pricing for legacy office assets. (colliers.com) (cushmanwakefield.com) (cbre.com) Lenders have been the sellers or interim owners on multiple downtown towers (for example, a Deutsche Bank affiliate recorded deed‑in‑lieu transfers on three large towers earlier in 2026), and the Leamington trade shows individual local investors and LLCs are also stepping in to buy single‑asset distress at steep discounts. (therealdeal.com 1) (therealdeal.com 2) Records list Edward Hemmat as manager or registered agent on multiple California LLC filings tied to Oakland properties, illustrating the kind of locally organized buyer entity that has been active acquiring discounted legacy assets in recent months. (bizapedia.com 1) (bizapedia.com 2)
