Posted on 10/23/2023 7:35:22 PM PDT by dynachrome
I’m not an expert on residential multi financing but that apartment with 754 units at peak had a valuation of ~700K per unit.
Even a 5 percent return on capital above costs would be ~$3000 per month ??
What kind of rents was this place charging ?
There is no way to me that the financing works. Is it all based on hoped for future price gains.
“The Chinese” are several things.
First of all, they are the PRC.
(Huge)
Then there is the (also huge) Chinese diaspora which is not directly controlled by Beijing, is very powerful globally, and owns a LOT of companies and will not do things opposed by Beijing. Lots of Taiwan interests in this bunch.
Then finally you have American influence, which is slowly being elbowed aside.
There are not lots of Chinese not somewhere in one of these.
Most of them are NOT in one of these things.
Chinese guys with money are not good at being centrally organised this way.
Especially not the sorts who want to make real estate investments in San Francisco. This is capital flight. They are doing things Beijing doesn’t want them to do.
yeah, something doesn’t seem right to me if the claimed 92% current occupancy rate is insufficient for positive cash flow ... if true, sounds like the whole deal was shaky from the git go ...
Kick out all of the current tenants and fill it with illegals. The government rate will be well in excess of what the owners are now collecting in rent.
EC
But hey, it's still worth $261 million more than Mar-a-Lago.
.....me too, but any factor that hurts the economy hurts us all.
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