Northpoint Plaza
Northpoint Plaza (formerly known as Greenfield Plaza) is an 18,000 SF multi-tenant office building with ground floor retail situated in the north downtown market of Los Gatos. Marwood purchased a defaulted first position note directly from the lender at 60% of face value. The property and note had been in litigation for several years, which included a borrower bankruptcy proceeding. Marwood recognized that the borrower and litigation proceedings had likely run their course and that the pending foreclosure auction would likely not be challenged. Marwood closed escrow on the note purchase the day before the scheduled foreclosure auction and attended the auction and credit bid against other bidders in order to gain ownership and control of the property. At the time of distressed acquisition, the building’s occupancy was under 50% and in a state of disrepair.
EXECUTION
Marwood executed a full building and landscaping face-lift and renovation, hired a new leasing team and achieved 100% occupancy from 50% in 9 months. The property appraised at more than double the note purchase price and Marwood refinanced the majority of the equity out of the building with long-term fixed rate, assumable debt. After undergoing a complete façade update and new landscaping and signage in 2013, the project remained at or near 100% occupancy.
ADDRESS
634 N. Santa Cruz Avenue, Los Gatos, CA
PROJECT SIZE
18,000 Square Feet
PROPERTY TYPE
Core Mixed-Use/Office
ACQUIRED
February 2015
STATUS
Sold November 2019