Oakland historic building whose owner battled tower goes into default
OAKLAND — A historic building in downtown Oakland whose owner had battled against the construction of a 40-story housing tower next door faces default and possible foreclosure on the property’s loan.
The four-story building whose loan is in default has addresses of 410 Fourteenth Street and 1411 Franklin Street, according to documents filed on April 4 with the Alameda County Recorder’s Office.
The Athenian-Nile Club Building, as the property at the corner of Fourth Street and Franklin Street is known, totals 40,000 square feet, according to a marketing brochure.
The building, which totals 40,000 square feet, was built in 1901 and was designed by Walter J. Matthews, one of Oakland’s most prolific architects, according to the Oakland LocalWiki website.
Lamumba Inc., whose principal executive is Oakland entrepreneur Geoffrey Pete, is the owner of the building whose $4.25 million loan is in default.
In 2021, Tellone Mortgage Fund provided the loan to Lamumba Inc. and warned that the lender could take back the building through foreclosure or auction off the property if the loan isn’t repaid in full.
Pete notably launched a lengthy appeals process to block the development of a 40-story residential tower on a site next to the building that his Lamuma firm owns.
Pete argued in multiple public hearings held by the Oakland Planning Commission and Oakland City Council that the housing highrise would harm his long-time business next door, Geoffrey’s Inner Circle.
Just before a final hearing was held in January 2024, Pete abruptly withdrew his appeal, which cleared the way for Tidewater Capital to construct the residential tower.
Despite the approval, the precise timeline for the development and completion of the housing highrise is unclear.
Why? Highrises face uncertain prospects due to elevated costs for construction loans.
What is certain is that Lamumba Inc., Pete’s company, could lose ownership of the building if he is unable to repay the delinquent loan in full. At the time of the default filing, Tellone Mortgage claimed that Lamumba owed $4.2 million, the county documents show.
This news organization reached out to Geoffrey Pete through his public phone number and an email address associated with his business to request a comment or perspective about the situation.
When a loan becomes delinquent, the lender typically must give the borrower at least three months to cure the default or craft a workout agreement with the lender.
Pete’s decision to drop his appeal of the housing tower was linked to assurances from the Oakland City Council made in January 2024 to provide financial resources to Geoffrey’s Inner Circle and the Black Art Movement and Business District.
In August 2024, Pete asserted that the item to finalize approval of the financial resources has been removed from the City Council agenda on multiple occasions, according to a report by the Oakland Post.
Besides Geoffrey’s Inner Circle, merchants located in the building include Fourteenth Street Market, Timbuktu 1, Yoko African Art, Minto’s Jamaican Patties and Juice Bar, Oakland Ink, Joyce Gordon Gallery, Central Nails and Truve Fit, according to Google Maps.
Some community leaders believe Pete’s Inner Circle is a Black cultural landmark in Oakland.