Edgewater Park Plaza, a two-story office campus near Oakland International Airport, is now barreling toward a foreclosure auction, the latest sign that HP Investors’ big bet on Bay Area office repositioning is backfiring. The roughly 206,000-square-foot complex, bought when the market looked far sunnier, was pitched as a candidate for logistics or flex-office conversions. Instead, slower leasing activity and rising financing costs have squeezed returns, and with a lender stepping in to sell, tenants and nearby businesses are staring down a very uncertain future.
According to The Real Deal, the Edgewater Park Plaza property at 7700 Edgewater Drive is headed for a lender-initiated sale after a January notice of default cited nearly $1 million in unpaid rent and identified East West Bank as the lender. The outlet also reported that the complex was part of HP Investors’ 2022 buying streak, and that The Real Deal pegged the purchase price at about $35.7 million. The looming auction arrives amid a broader wave of distress among mid-tier East Bay office owners.
Property background
HP Investors lists Edgewater Park Plaza at about 206,000 square feet on roughly 11 acres, with the acquisition recorded in June 2022. The two-story campus sits across from the Coliseum and was marketed as a flexible play that could tap into logistics and industrial-office demand near Interstate 880 and the airport. That strategy looked solid in 2022, but it has been far harder to pull off amid a slower-than-hoped-for return-to-office cycle.
Market strain
East Bay office numbers have not been doing landlords any favors. Market data show vacancy hovering in the mid-teens, and CoStar reported about a 16 percent vacancy rate in early 2026. At the same time, lenders have grown less eager to refinance properties that are already struggling. The pressure has already triggered seizures and auctions: HP Investors previously lost 1700 Broadway in a 2024 lender seizure, as documented by the Page Suite. Against that backdrop, a large, older office campus near the airport winding up at a foreclosure auction is less a surprise than a sign of the times…