There is more here than meets the eye. The loan matures in November 2023. So, the borrower is giving up the property for six months of mortgage payments. Unless there is a huge balloon payment they are giving up the building for very little money.
I suspect the real scenario is that a default and sale of the property will wipe out contracts that Park has with various unions and even with San Francisco. The loss on the building may be less than the projected losses from being forced to operate in a city that has turned itself into a sh*t hole.
There is a balloon it’s in the article. They are banking the 6 months of payments rather than paying only to have to refinance or surrender then
They are literally saying we are going to keep that 6 months of cash and give up completely on the property. Or basically “we feel the property is worth less than we owe and are keeping out cash.”