Large Apartment Complex in San Francisco in Default
San Francisco Chronicle reports: The commercial real estate meltdown has caught up with one of the largest apartment complexes in the country - San Francisco's Parkmerced.
The loan on the property is headed for default, according to the development's owner.
The 116-acre complex, purchased in 2005 by Stellar Management and another real estate investment firm, Rockpoint Group, has 1,683 rental units contained in 11 residential towers. Blocks of two-story garden townhouses account for an additional 1,538 apartments.
Earlier this month, the owners presented a $1.3 billion plan to triple the number of homes at Parkmerced, replacing the townhouses with more than 7,000 new units, including some available to buy.
Stellar Management says the expansion plan is in the environmental impact report stage.
"At this point, we're not anticipating any effect on our future plans for Parkmerced," said P.J. Johnston, a spokesman for Stellar Management,
Observers have praised Parkmerced's owners for making major improvements to the complex since they bought it for $700 million.
But some real estate analysts have raised financial concerns, given the state of the real estate market. "The asset has fallen to the point that makes refinancing very difficult without a massive equity infusion," said an analyst with Real Capital Analytics, a global commercial real estate research firm.
View the full article on San Francisco Chronicle: Large Apartment Complex in San Francisco in Default
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Posted by: Nina Turner