Former Borland center on auction block

Lenders are preparing to sell Enterprise Technology Center in Scotts Valley in a foreclosure auction at the end of the month after owners of the 488,000-square-foot facility failed to meet the debt obligation of the property, best known as the former Borland headquarters.
An auction on the steps of the Santa Cruz County government center is scheduled for 1:30 p.m. Tuesday, Nov. 29.
The property — two parcels assessed at a value of more than $64 million — is owned by Triple Net Properties of Santa Ana, which bought it for $59.5 million in 2004. Triple Net borrowed to purchase the property. The Santa Cruz County Assessors Office shows that as many as 31 investors bought partial interest in the building.
A notice of default on a loan with an original note of $63.5 million was filed July 13, and the property went into receivership the following week. Tim Ballas of San Francisco-based CB Richard Ellis was assigned as receiver.
The foreclosure notice lists the remaining debt as $38,756,967.04.
If there is no bid at auction, the property will revert to the ownership of the lender, in this case, the master servicer of the loan LNR, a large commercial mortgage servicer based in Florida.
The technology center was built by Borland founder Phillipe Kahn for $120 million in 1993 to house his booming tech company.
Borland sold the building in 2000 but remained one of the largest tenants until 2005, when the company moved entirely to Cupertino.
Club One is the largest of several tenants, running a large-scale fitness club in the building’s recreation facilities. Club One management had not yet heard any official word from the property’s manager as of Tuesday, Nov. 8 and could not comment on the situation.