Might I ask, is the owner being sued by the state AG’s office over the asset’s inflated value?
Derelicts living free to keep them off filthy sidewalk tent encampments claim the room service is slow and the narcotics delivered are mostly cut with cornstarch or talcum. And the Netflix and Paramount Plus service on the 80 inch HD TVs keeps going off and on.
They may demand a better building.
All part of the plan. In two years the value will be $80 million and some globalist will buy the entire neighborhood.
I love a happy ending
I’m not unhappy to see the people of San Francisco, who decade after decade are so stupid they elect literally retarded morons,... take one more punch in the gut.
I am unhappy to see private enterprise take one more liberal/marxist/socialist, democratic party punch in the gut.
It’s what they voted for.
No need for them to worry. Our government will rent the place out to house illegals.
San Francisco is a literal turd bowl.
And they can’t figure out how to clean it up.
If you owe the bank $1 million and can’t pay, you have a problem. If you owe the bank $100 million and can’t pay, the bank has a problem.
This place, on 10th St., is a very poor location. I walked right by it in May.
There were hopes, during the techbro boom pre-Covid, that it could be gentrified. That is gone for now.
There is a game afoot here. The borrowers are well-positioned to re-negotiate.
Or some bottom fisher could buy for a bargain price. Banks and other lenders do not like to own real estate. REO (“Real Estate Owned”) is usually sold at a loss by the lenders.
Okay but, this is an apartment that should be better than 98% occupied and rents haven’t been reduced.
So what gives?
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.
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.