{"id":1434463,"date":"2023-10-23T22:00:00","date_gmt":"2023-10-24T02:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1434463"},"modified":"2023-10-23T22:00:00","modified_gmt":"2023-10-24T02:00:00","slug":"huge-san-fran-apartment-building-reportedly-loses-50-of-value-as-cre-market-tanks","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/huge-san-fran-apartment-building-reportedly-loses-50-of-value-as-cre-market-tanks\/1434463\/","title":{"rendered":"Huge San Fran Apartment Building Reportedly Loses 50% Of Value As CRE Market Tanks"},"content":{"rendered":"

Huge San Fran Apartment Building Reportedly Loses 50% Of Value As CRE Market Tanks<\/span><\/p>\n

\n

Soaring interest rates and a slide in bank lending following March’s regional banking meltdown have pressured the commercial real estate sector, especially office towers nationwide. But the stress might be spreading as a new report warns one of San Francisco’s largest apartment buildings has sustained a near 50% collapse in valuation in just five years, with risks of imminent default.\u00a0<\/p>\n

Local paper\u00a0San Francisco Chronicle<\/em><\/a>, citing new data from real estate data firm Trepp, said the 754-unit apartment tower, called “NEMA,” located at 10th and Market Street in the downtown area, was valued at $543.6 million in 2018 but is now worth around $279 million. This means in just five years, the building’s value crashed a whopping 48.6%.\u00a0<\/p>\n

#TreppWire<\/a> Trading Alert: Value of NEMA #SanFrancisco<\/a> Collateral Slashed\ud83d\udea8<\/p>\n

The 754-unit apartment complex backing the $384 million #CMBS<\/a> loan was cut to $279 million. In 2018 the value was $543.6 million.<\/p>\n

Learn about #Trepp<\/a>https:\/\/t.co\/hezyw9iFbh<\/a> https:\/\/t.co\/FThMuFcQnA<\/a> pic.twitter.com\/66esH0jGiA<\/a><\/p>\n

\u2014 Trepp (@TreppWire) October 18, 2023<\/a><\/p>\n

Crescent Heights, the building owner, is at risk of imminent default because its $384 million mortgage exceeds the current $279 million value by $105 million. In August, Trepp said the building owner warned, “The property’s cash flow can no longer cover the monthly debt service.”\u00a0<\/p>\n

High interest rates plus sliding property valuations will keep\u00a0refinancing conditions strained for\u00a0Crescent Heights. A\u00a0September\u00a0inspection report said the building owner would need to make\u00a0significant investments to\u00a0maintain “good” conditions in the building. As of 1Q23, NEMA had\u00a092% occupancy.\u00a0<\/p>\n

<\/a><\/p>\n

San Francisco landlords, especially office tower ones in the downtown area, have been battered by high interest rates, and a\u00a0crime-ridden metro area<\/a>\u00a0imploding under failed progressive policies, such as ‘defund the police,’ which has sparked a tsunami in crime. Businesses and people are moving out of the city to safer areas.\u00a0<\/p>\n

In recent quarters, several office towers,\u00a0malls<\/a>, and hotels in the downtown area have either defaulted or sold at a\u00a0massive discount<\/a>.<\/p>\n

We first told readers in early March during the regional banking fiasco:\u00a0“CRE Nuke Goes Off With Small Banks Accounting For 70% Of Commercial Real Estate Loans.”<\/em><\/a><\/p>\n

In recent weeks, Goldman interviewed real estate legend Scott Rechler, Chairman and CEO of RXR Realty, who provided the understanding the\u00a0CRE crisis is only just beginning<\/a>.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 10\/23\/2023 – 18:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/huge-san-fran-apartment-building-reportedly-loses-50-value-cre-market-tanks<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Huge San Fran Apartment Building Reportedly Loses 50% Of Value As CRE Market Tanks Soaring interest rates and a slide in bank lending following March’s…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1434463","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-61av","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1434463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1434463"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1434463\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1434463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1434463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1434463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}