REAL ESTATE : 12-Story East Tower in Irvine Finds No Takers at Foreclosure Auction

As expected, nobody bought a 12-story twin office tower built by the Koll Co. and Columbia Savings & Loan at a foreclosure auction Monday. The property, known as the East Tower, is a polished granite building, one of twin 280,000-square-foot structures located in the Koll Center Irvine North complex at Main Street and MacArthur Boulevard in Irvine. Unable to reach agreement over an overdue $50-million construction loan, Connecticut General Life Insurance has now foreclosed on the property.

Richard Ortwein, division president with the Koll Co. in Newport Beach, said bidders probably shied away because the amount of the loan likely exceeds the building’s current value. As a result, the property reverts back to the lender. Ortwein said it was not clear if Connecticut General would hold onto the building or try again to sell it. Some real estate observers have mentioned the building as a possible new expansion site for Taco Bell, which is located near the East Tower and has announced it is searching for a new facility.

The East Tower’s twin, the West Tower, is being marketed for about $37 million by Wells Fargo Bank, which foreclosed on the property in April. It was also built by a Koll-Columbia partnership.