Dive Brief:
- After maturing in December, the loan backing Parkmerced, a 3 million-square-foot, 3,221-unit complex in San Francisco, went into receivership in March, according to a Morningstar Credit report shared with Multifamily Dive.
- San Diego-based real estate services provider Douglas Wilson Cos. has been appointed receiver and will take control of property management and operations. Funds were provided to handle operational expenses. Future lender actions may include a foreclosure or an action against the guarantor, according to Morningstar.
- Last year, property owner Robert Rosania, the founder of San Francisco-based apartment investor Maximus, requested the loan go into servicing, citing low occupancy and a December maturity. The borrower failed to close on a loan modification that had been negotiated, according to Morningstar.
Dive Insight:
In a separate report, data firm Trepp noted the $980 million portion of the $1.5 billion senior loan backing the Parkmerced property in San Francisco went delinquent in March, along with the property’s $275 million mezzanine loan.
Parkmerced was built in 1944 and renovated in 2009. The property was appraised at $2.11 billion at securitization in 2019 but fell to $1.39 billion in July 2024.
Trepp said Parkmerced had multifamily's biggest delinquent loan in March. In March 2024, occupancy was reported at 81% at the property, and the debt service coverage ratio was well below breakeven, according to Morningstar Credit.
Parkmerced isn’t the only troubled property in Rosania’s portfolio. He didn’t reply to requests for comment.
He is also listed as the owner of The Cove at Tiburon, a 33-building, 283-unit property in Tiburon, California. The waterfront property, originally constructed in 1967, was renovated in two phases between 2014 and 2018, according to Morningstar Credit.
In January 2025, The Cove at Tiburon’s loan originally went on the watch list due to its pending maturity. The servicer reached out to the borrower multiple times to get an update on its plans once the loan matured, according to Morningstar Credit. However, the borrower has not yet indicated its plans at maturity.
While San Francisco and other West Coast markets struggled in the years after the COVID-19 pandemic, the situation is improving for apartment owners, as major employers like Salesforce have introduced return-to-office mandates.
“While we did include some further recovery in downtown Seattle and San Francisco in our guidance, both markets have the potential to outperform if we get more robust pricing power early in the year,” Equity Residential Chief Operating Officer Michael Manelis said on the Chicago-based REIT’s fourth-quarter earnings call in February.
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