Oakland 28-Story Office Loan: $60M Debt, $53.5M Appraisal

A $60 million CMBS loan on a 28-story Class A office building in Oakland is carried above its latest appraisal of $53.5 million, according to the October servicer report for JPMCC 2016-JP3 Mortgage Trust, filed October 27. The building has 528,158 square feet and was 55 percent occupied as of its January 2026 rent roll. The filing does not give the street address.

Why it matters

A 528,158-square-foot tower is a benchmark for downtown Oakland office values. The appraisal, dated April 24, 2026, is below the balance, so a sale at appraised value would not repay the loan in full. Brokers and developers considering office-to-residential conversions or a bulk purchase can read the gap as the lender’s starting point.

The numbers

The loan transferred to special servicing effective October 29, 2024, for imminent monetary default, and matured July 1, 2026. Net operating income was $4.1 million with a debt service coverage ratio of 1.02 as of September 30, 2025. The balance is $60 million and the appraisal is $53.5 million, about 89 percent of the debt. A sister trust, JPMDB 2016-C4, reports a separate $37.1 million balance and describes the same building; the loan is split across trusts, so balances should not be added. Net operating income of $4.1 million against a $60 million balance is a yield of about 6.9 percent on the debt, before reserves and capital costs, which is the arithmetic a buyer will run.

What’s next

The servicer says its asset manager is in discussions with the borrower over a potential loan modification. No modification is reported as closed. The next monthly report will show whether the loan is modified, extended or heads toward foreclosure. For more, see the San Francisco market hub.