Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

One of S.F.’s biggest apartment buildings reportedly loses half its value
SF Chronicle ^ | 10-19-23 | Roland Li

Posted on 10/23/2023 7:35:22 PM PDT by dynachrome

NEMA, one of San Francisco’s largest apartment buildings, has lost almost half its value in five years as it faces an “imminent default” risk on its mortgage, according to a new report.

The 754-unit apartment tower was valued at $543.6 million in 2018 but is now valued at $279 million by real estate data firm Trepp. That’s below the value of owner Crescent Heights’ $384 million mortgage, an ominous sign indicative of the Mid-Market area’s struggles.

• S.F. Bay Area property map: Here’s who owns every building in region

Crescent Heights didn’t immediately respond to a request for comment, but said in August that “the property’s cash flow can no longer cover the monthly debt service,” according to Trepp. The developer could lose control of the property if it becomes late on mortgage payments and lenders seek to foreclose.

San Francisco landlords have struggled with mortgage payments or given up properties around downtown, including at the San Francisco Centre mall; the Parc 55 and Hilton Union Square hotels; and a huge portfolio of apartments owned by Veritas.

NEMA, at 8 10th St., is next to two major office buildings that have emptied during the pandemic: 1355 Market St., where X (formerly Twitter) slashed most of its staff following Elon Musk’s acquisition; and, to the west, 1455 Market St., which lost its two anchor tenants, Uber and Block.

(Excerpt) Read more at sfchronicle.com ...


TOPICS: Business/Economy; Crime/Corruption; News/Current Events; US: California
KEYWORDS: apartment; california; realestate
Navigation: use the links below to view more comments.
first previous 1-2021-27 last
To: 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.


21 posted on 10/23/2023 9:35:29 PM PDT by Reverend Wright ( Everything touched by progressives, dies !)
[ Post Reply | Private Reply | To 1 | View Replies]

To: buwaya

“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.


22 posted on 10/23/2023 10:43:02 PM PDT by cba123 (Tôi là người Mỹ. Hiện tôi đang ở Việt Nam)
[ Post Reply | Private Reply | To 18 | View Replies]

To: cba123

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.


23 posted on 10/23/2023 10:55:01 PM PDT by buwaya (Strategic imperatives )
[ Post Reply | Private Reply | To 22 | View Replies]

To: Reverend Wright

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 ...


24 posted on 10/24/2023 3:42:24 AM PDT by catnipman (A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil)
[ Post Reply | Private Reply | To 21 | View Replies]

To: dynachrome

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


25 posted on 10/24/2023 4:12:52 AM PDT by Ex-Con777
[ Post Reply | Private Reply | To 1 | View Replies]

To: dynachrome
The 754-unit apartment tower was valued at $543.6 million in 2018 but is now valued at $279 million by real estate data firm Trepp.

But hey, it's still worth $261 million more than Mar-a-Lago.

26 posted on 10/24/2023 8:21:16 AM PDT by Albion Wilde (Either ‘the Deep State destroys America, or we destroy the Deep State.’ --Donald Trump)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Spacetrucker

.....me too, but any factor that hurts the economy hurts us all.


27 posted on 10/24/2023 11:23:36 AM PDT by Cen-Tejas
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-27 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson