A residential buildings in San Francisco has reportedly experienced a sharp decline in value compared to its level in 2018.
The San Francisco ChronicleCiting data from Trepp, the company reported Thursday that the value of the building, which was part of Crescent Heights’ NEMA, fell $264.6 million to $279 million, a decline of more than 48% compared to 2018, when it was worth $543.6 million.
Trepp also tweeted about it on Wednesday. The firm, which tracks structured finance, commercial real estate and banking markets, said the associated commercial mortgage-backed securities (CMBS) loan was $384 million.
The mid-market area of San Francisco, where the headquarters of X (formerly known as Twitter) and other office buildings are located, is home to NEMA. The roughly 10-year-old building has 37 stories and 754 rental units, according to the Crescent Heights website.
The change comes just a few months after another Trepp report suggested that NEMA could potentially face foreclosure due to a mortgage default, according to the San Francisco Chronicle and the San Francisco Business Times. Special Servicing reportedly received the loan.
FOX Business reached out to Crescent Heights for comment but did not receive a response at the time of publication.
San Francisco and its real estate markets have been working to recover from the peak of the COVID-19 pandemic. The city has a large presence of companies in the region Tech sectormany of which give their employees the option to work remotely.
Data released by the San Francisco Office of Economic Workforce & Development showed that weekly office attendance in San Francisco averaged 44% for the week of Sept. 27, a figure that has fluctuated for some time. The city reported an office space vacancy rate of 26% for the quarter ended March.
This year, a a lot of companies said they were leaving locations in downtown San Francisco. The reasons for this are varied, with some citing changing consumer habits, local business conditions and safety concerns, as FOX Business previously reported.
According to the San Francisco Office of Economic Workforce & Development, the city had an estimated population of about 808,400 in 2022, a significant decrease from 881,500 in 2019.
Original source of the article: Apartment building in San Francisco faces foreclosure, significant loss in value