{"slug": "landmark-oakland-office-tower-is-foreclosed-as-market-weakness-widens", "title": "Landmark Oakland office tower is foreclosed as market weakness widens", "summary": "The Clorox Building, a landmark Oakland office tower, has been foreclosed after its owners, KKR and TMG Partners, returned the property to lender Heitman Capital Management. The foreclosure, valued at $258.3 million, highlights ongoing weakness in the Bay Area office market.", "body_md": "**Getting your**\n\n[Trinity Audio](//trinityaudio.ai)player ready...OAKLAND — One of the landmarks of the Oakland skyline has been foreclosed due to a failed loan, a grim new indicator that the Bay Area office market remains feeble with no immediate remedies in sight.\n\nThe Clorox Building at 1221 Broadway in downtown Oakland has been taken back through a speedy foreclosure process, documents filed on June 16 with the Alameda County Recorder’s Office show.\n\nThe deed in lieu of foreclosure for the Clorox tower represents one of the latest examples of the [brutal economic conditions for the office market in Oakland](https://www.mercurynews.com/2026/01/27/oakland-property-office-economy-real-estate-build-loan-bank-develop/) and elsewhere in the Bay Area.\n\nLoan failures and [fading values have begun to haunt a growing number of office buildings](https://www.mercurynews.com/2026/04/02/oakland-property-office-build-real-estate-economy-develop-loan-downtown/) in the East Bay’s largest city.\n\nAn alliance of private equity titan KKR and real estate firm TMG Partners returned the Clorox Building to its lender as a result of the swift foreclosure, the county documents show.\n\nHeitman Capital Management took back the office tower, which is part of the City Center mixed-use complex. The Heitman Capital affiliate that now owns the property placed a value of $258.3 million on the Clorox Building through the foreclosure.\n\nAn affiliate of KKR and TMG bought the Clorox Building in 2018, paying $253.5 million for the tower, Alameda County documents show. KKR obtained a $239.6 million loan from Heitman Capital at the time of its purchase.\n\nAt the time that transaction occurred, commercial real estate experts described the purchase as the largest single-asset purchase in Oakland’s history. The Clorox tower totals about 535,000 square feet.\n\nIn 2015, the Clorox Building was bought for $165.4 million, according to Alameda County property documents.\n\nOakland-based Clorox has its world headquarters in the building and is the anchor tenant for the tower. In 2012, Clorox sold the building for $110 million. The Clorox tower’s other tenants include Brown & Towland.", "url": "https://wpnews.pro/news/landmark-oakland-office-tower-is-foreclosed-as-market-weakness-widens", "canonical_source": "https://www.mercurynews.com/2026/06/18/oakland-office-economy-property-build-real-estate-develop-loan-bay-area/", "published_at": "2026-06-18 12:00:21+00:00", "updated_at": "2026-06-18 12:26:10.935173+00:00", "lang": "en", "topics": ["ai-policy"], "entities": ["Clorox Building", "KKR", "TMG Partners", "Heitman Capital Management", "Clorox", "Brown & Towland", "Oakland", "Bay Area"], "alternates": {"html": "https://wpnews.pro/news/landmark-oakland-office-tower-is-foreclosed-as-market-weakness-widens", "markdown": "https://wpnews.pro/news/landmark-oakland-office-tower-is-foreclosed-as-market-weakness-widens.md", "text": "https://wpnews.pro/news/landmark-oakland-office-tower-is-foreclosed-as-market-weakness-widens.txt", "jsonld": "https://wpnews.pro/news/landmark-oakland-office-tower-is-foreclosed-as-market-weakness-widens.jsonld"}}