Friday, September 11, 2009

$68 million AmberGlen Business Center goes into foreclosure

From the Oregonian:

In go-go days of May 2007, a San Diego company hunted deep into Hillsboro's Silicon Forest for a real estate buy that would produce a princely profit.

Equastone Real Estate Investment Advisors thought it found its prize when it bought 40 percent of AmberGlen Business Center, a sprawling glass and brick office park that bills itself as Oregon's largest.

With money easy to come by, the firm took out a high-risk loan to make the unsolicited $67.9 million deal, an eye-popping 24 percent increase from the last sale just 20 months earlier.

Two years later, Equastone's bet busted.

The firm's buildings - equal to about 28 high-rise floors -- are in default, the first step of foreclosure. Local brokers say the investors would be lucky to sell for half what they paid.

The article is a good one. I recommend reading the entire thing.