San Francisco Multifamily Portfolios Going Back to Lender
Goldman, Ballast in talks to hand 82 apartment buildings to RBC.
Apartment portfolios in San Francisco continue to change hands like a game of musical chairs—and it’s probably a safe bet that it will take a few rate cuts from the Fed to end the slow dance of borrowers and lenders.
Goldman Sachs and Ballast Investments are in talks to hand three residential portfolios encompassing a total of 82 buildings and about 1,200 apartments in the city back to lender RBC Real Estate Capital in a deed-in-lieu transaction, according to a report in the San Francisco Business Times.
Last year, Goldman and Ballast defaulted on $688M in loans backed by the portfolios, debt that was originated in 2020 and 2021 by RBC, the report said.
Earlier this year, Ballast was on the acquisitions side of the largest debt-related trade of a huge multifamily portfolio in San Francisco.
NYC-based Brookfield Properties and Ballast partnered to acquire 2,149 apartments in the city that had previously been owned by Veritas Investments, which with its partners defaulted in 2022 and 2023 on two loans totaling $915M backed by the multifamily properties.
In December, their lenders sold the debt, a $675M loan backed by 62 buildings and a $130M loan backed by 14 buildings, to Brookfield and Ballast for $615M. In January, the partners acquired the apartment portfolio at a foreclosure auction.
Goldman and Ballast together own and operate an estimated 106 apartment properties in San Francisco, including the 82 buildings financed by RBC, which the partners acquired between 2017 and 2020 in transactions encompassing more than $1.1B, the report said.
In February, Mosser Companies defaulted on an $88M loan backed by 12 apartment building encompassing 459 units in San Francisco. The lender is marketing the loan and the portfolio, which includes properties in the Civic Center, Downtown and South of Market, according to a report in the San Francisco Chronicle.
In October, Veritas sold the mortgages tied to a portfolio of 20 multifamily properties in San Francisco to Prado Group for $124M.