PCCP Defaults on $72M Loan Tied to Santa Clara Offices

PCCP has defaulted on a $72 million loan secured by a six-story office building in Santa Clara.

An affiliate of the Los Angeles-based investor defaulted on the debt tied to the 152,300-square-foot building at 2390 Mission College Boulevard, the San Jose Mercury News reported.

Luxembourg-based AB Commercial Real Estate Debt provided the $72 million loan in 2022. A default notice allows the lender to foreclose on the loan or auction the building.

Some 83,600 square feet of offices are available for lease, according to CommercialSearch, indicating the building is 55 percent vacant.

Tenants include network security company Infoblox, which in 2020 leased 42,100 square feet for its headquarters, according to the Silicon Valley Business Journal. Terms were not disclosed.

The building, built in 2018, was once owned by Los Gatos-based South Bay Development, whose surrounding Mission City Center included a parking garage and a 14-story office tower at 2350 Mission College Boulevard.

It’s not clear when PCCP bought the building at 2390 Mission College, and for how much.

Office availability across the South Bay was 25.9 percent during the fourth quarter ending in December, down from 27.5 a year earlier, according to Savills. Availability includes empty office space plus space tenant offers for sublease.

A leasing boom by Silicon Valley tech firms at the end of last year helped tamp down office vacancy across the region, according to the Mercury News.

Deals last quarter include Snowflake leasing 773,000 square feet in Menlo Park; Amazon.com taking 217,800 square feet in Mountain View; Astera Labs leasing 154,200 square feet in North San Jose; Robinhood leasing 128,700 square feet in Menlo Park; and Nvidia taking up 101,600 square feet in North San Jose.

PCCP, founded in 1998 by William Lindsay, Aaron Giovara and Donald Kuemmeler, focuses on lending for middle-market projects across the U.S., according to its LinkedIn page. As of Sept. 30, the firm had had $24.9 billion in assets under management, according to its website.

— Dana Bartholomew