Office Park Gets $51 Million Infusion

ROSEVILLE, CA–The $51 million recapitalization of Parkway Corporate Plaza, a 288,000-square-foot, institutional quality office park, has been completed. The office park, located at 1620-1680 E. Roseville Parkway, is one of many core assets purchased in the early 2000s under a tenants in common (TIC) structure. The property is currently 85% leased to mostly national tenants including Kaiser Permanente, Sutter Health, Wells Fargo, California Department of Social Services and Act-On.

During the recession, the property faced CMBS debt maturity. NNN Properties Inc. purchased the property in 2003 for $63.65 million and syndicated it to 27 TIC owners and a collective investment group as the 28th TIC member. After losing a lead tenant and changing operators, the TIC ownership group went into loan default when it could no longer advance funds for the asset’s leasing needs. The special servicer filed for technical default foreclosure on the asset and lawsuits ensued.