OAKLAND — Three high-profile office towers in downtown Oakland have been seized through a foreclosure due to a loan failure that shows economic maladies still afflict the commercial property sector in the East Bay’s largest city.
Deutsche Bank AG New York Branch, through an affiliate, took ownership of the three office towers in a streamlined foreclosure process, according to documents filed on Jan. 20 with the Alameda County Recorder’s Office.
The unpaid debt for the three office buildings totals $442.1 million, the financial titan’s affiliate stated in the filing, which was a deed in lieu of foreclosure, the county records show.
The original loan that Deutsche Bank provided to Starwood totaled $364.5 million, Alameda County real estate records show.
The buildings are located at 2101 Webster St., 1901 Harrison St., and 2100 Franklin St., according to the public filing.
Connecticut-based Starwood Capital had bought the buildings in 2019, paying $494 million in a deal that at the time was seen as a sign of confidence in the Oakland office market.
The exuberance over the office sector was well-placed in 2019. Around the time Starwood bought the buildings, the office vacancy rate in downtown Oakland was around 7.5%, according to a report by Colliers, a commercial real estate firm.
However, about a year after Starwood bought the office buildings, the coronavirus outbreak ushered in wide-ranging business shutdowns that chased workers out of their offices over fears about the spread of the deadly virus.
Office vacancies have remained elevated in the Bay Area, even years after the end of the business lockdowns.
In the October-through-December fourth quarter of 2025, the office vacancy rate in downtown Oakland was a brutally high 28.5%, Colliers reported.
The three buildings totaled 975,000 square feet, according to information posted by the CompStak commercial real estate database.
The 2101 Webster building is 20 stories and totals 473,000 square feet. The 1901 Harrison property is 17 stories and totals 285,000 square feet. The 10-story 2100 Franklin building totals 217,000 square feet.
In addition to the offices, the bank’s affiliate also seized ownership of a parking garage at 2353 Webster St., the foreclosure deed shows.
The office buildings are all on different parcels. This means the lender’s affiliate could market the buildings through separate sales, should the bank decide it wants to unload any or all of the towers.
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