San Francisco's largest apartment complex, the 754-unit NEMA building, may default on its $384 million mortgage. The loan moved to a special servicer as the owner says rental income can't cover debt payments. Occupancy hit 91% last year, but residents have fled amid rising crime.
Rumors are swirling that San Francisco's biggest apartment complex, the NEMA Building on 10th and Market, could default on its mortgage as residents and businesses have left the area. The $384 million mortgage on the 754-unit apartment building has been transferred to a special servicer, which is a step often taken in the immediate lead-up to a default. The company that owns the property, a company called Crescent Heights, indicated that cash flow from the rentals could no longer service their debt. Occupancy in the building last year reached as high as 91%, but it's unclear what the occupancy rate is today as tenants and businesses have largely left the area, which is one of the most crime-ridden areas in the entire city. Things in the area are definitely gonna have to change if there's any hope of turning this around. Follow me for more Bay Area real estate. Bye.
