Holy Names University Oakland hills campus price tag tops $60 million

OAKLAND — Holy Names University’s hillside campus in Oakland has officially been bought for more than $60 million in a deal that the new owner says will preserve educational activities at the scenic complex.

BH Properties, acting through an affiliate, paid $65 million for the huge campus, which is located at 3500 Mountain Boulevard in Oakland, according to documents filed on Tuesday with the Alameda County Recorder’s Office.

“We are excited to announce this long-term investment in the Oakland community, Jim Brooks, president of BH Properties, said last week as part of the real estate firm’s announcement of the property deal. “We expect it to continue to be an asset to the community and its students for years to come.”

As part of its purchase of the 58.6-acre campus, BH Properties also obtained $45 million in financing from Hankey Capital to help accomplish the deal, the county documents filed on June 13 show.

The property purchase was arranged through CBRE commercial real estate brokers Mike Taquino, Kyle Kovac, Joe Moriarty and Giancarlo Sangiacomo.

Holy Names University sold its campus, to which it first moved in 1957, while being forced to confront financial squeezes on multiple fronts.

The most recent among numerous financial challenges facing Holy Names University was a filing on Feb. 23 that stated the college had defaulted on a $49 million mortgage loan. The school’s property, including the land and buildings on the site, provided the collateral for the loan.

The lender, Preston Hollow Community Capital, filed the default notice at the Alameda County Recorder’s Office.

Adding to the pressure on the university, Preston Hollow had scheduled a public auction for June 30 that would have allowed the lender to seize the school and the property, or have it sold to the highest bidder.

Instead, the stage is now set for the campus to be a prime site for long-term educational activities in Oakland.

The next major step for the campus site: Commercial real estate brokers David Klein and Jeff Moeller of Lee & Associates San Francisco will scout for one or more education-oriented tenants to lease space.

“It heartens us to know that the legacy created by Holy Names University will be carried on for future generations of learning and education at the campus for students of Oakland and the East Bay,” said Steven Borg, chair of the university’s board of directors. “This was a priority of the board as we embarked on the wind-down of the university and sale of the property.”