Receiver Douglas Wilson Cos. confirmed Wednesday that it is in “full control” of Parkmerced, the 3,165-unit complex near the San Francisco-Daly City border, the San Francisco Business Times reported.
Lenders Barclays and Citigroup filed suit against a Maximus affiliate in San Francisco Superior Court in February, seeking the appointment of a receiver responsible for managing, operating and maintaining the complex.
The debt on Parkmerced entered special servicing a year ago at Maximus’ request. Last fall, the developer and its lenders finalized the terms of an agreement to modify the CMBS debt package, but the deal fell apart before it could be closed.
In December, after the loan modification agreement collapsed, Maximus Founder Rob Rosania said his firm had “never been more committed to Parkmerced than now,” adding that the company expected to close a loan extension in “coming weeks,” The Business Times reported.
If the Parkmerced complex ends up on the selling block it will enter a San Francisco multifamily market that is seeing institutional investors back in play and prime locations trading as prices are firming.
Longtime owners have closed deals in the first quarter to sell two apartment buildings, continuing a hot streak that began in the second half of 2024.
The deals included the sale for $14.5M of a 36-unit Nob Hill apartment building that was conducted in 1954. The price for that trade translates to just over $400,000 per unit, significantly higher than the 2024 average of about $340K per unit, according to Colliers data.
The seven-story building at 1330 Jones is in proximity to Grace Cathedral, Huntington Park and the Financial District. The sellers were descendants of the developer who built the apartment building, Theo G. Meyer and Sons, and the buyer was Otrera Real Estate.
Another recent trade was the $35M sale of the block-long Normandy Apartments, located just behind St. Mary’s Cathedral.
Affordable housing developer Tenderloin Neighborhood Development Corp. (TNDC) bought the 108-unit complex at 1135-1175 Ellis Street, built in 1968, with funding from the San Francisco Mayor’s Office of Housing and Community Development.
The acquisition will create “permanently affordable units in the city’s Western Addition neighborhood,” TNDC said in a statement.
Multifamily investment sales volume in San Francisco increased by 31% in 2024 versus the previous year, with a 69% rise in transactions for properties with 10 or more units, according to Colliers data. With private equity and institutional investors coming back into the market, more inventory has been going on the selling block.
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