A very large apartment building in San Francisco has lost $250 million in value since 2018 as the city has devolved into a hellscape of crime and open drug addiction.
Commercial real estate and retail space in the city have had the same problems.
This could eventually cause a domino effect on San Francisco unlike anything we have ever seen.
The FOX Business Network reports:
San Francisco apartment building facing foreclosure, significant decline in value
An apartment building in San Francisco has reportedly experienced a large decrease in its value compared to where it stood in 2018.
The San Francisco Chronicle, citing data from Trepp, reported Thursday that the building, the Crescent Heights-owned NEMA, had its value decline by $264.6 million, hitting $279 million, more than a 48% drop from 2018, when it was worth $543.6 million.
Trepp had also tweeted about it Wednesday. The company, which tracks structured finance, commercial real estate and banking markets, said the commercial mortgage-backed securities (CMBS) loan connected to it was $384 million.
The Mid-Market area of San Francisco, where the headquarters of X (previously known as Twitter) and other office buildings are located, houses NEMA. The roughly 10-year-old building has 37 floors and 754 rental units, according to the Crescent Heights website.
The change comes just a couple months after another Trepp report indicated the NEMA could potentially have to contend with foreclosure from a mortgage default, according to the San Francisco Chronicle and the San Francisco Business Times. Special servicing reportedly received the loan.
Liberal policies are destroying this city.
The 754-unit apartment complex backing the $384 million #CMBS loan was cut to $279 million. In 2018 the value was $543.6 million.
— Trepp (@TreppWire) October 18, 2023
“A 754-unit luxury apartment complex owned by Crescent Heights in San Francisco’s Mid-Market neighborhood lost nearly half its value since the deal priced in 2019, according to #Trepp.” @AndrewCoen Via @commobserverhttps://t.co/OF1hXVwgk2
— Trepp (@TreppWire) October 19, 2023
What will happen to the city of San Francisco when this crash in value hits a majority of properties?
Source material can be found at this site.