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San Francisco Apartment Owner Veritas Defaults on $450M Loan

San Francisco Apartment Owner Veritas Defaults on $450M Loan

While the multifamily sector has been a strong performer through the pandemic, the current volatile economy is starting to take a toll. One of San Francisco’s largest apartment landlords, Veritas, has defaulted on a $450 million CMBS loan, and it could be a sign of things to come.

According to reports, the loan, which is secured by 62 of the company’s rent-controlled properties in The City, went into special servicing on November 3, and was not repaid when it matured on November 15. 

In a statement, Veritas said that the multifamily sector is facing many of the same financial challenges as other asset classes, including the spiraling costs of debt. Veritas added that despite the headwinds, it remains committed to San Francisco, and it will manage its properties as “normal” while its financial partner, reportedly Baupost Group, continues to work with the lender to resolve the loan impasse. 


Inside The Story

VeritasThe Baupost Group

About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.

  • ◦Financing
  • ◦Economy
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