Tracking the biggest multifamily delinquencies

Since COVID-19 hit, San Francisco’s rental market has been anything but normal. With many workers no longer tied to their offices, the city saw a mass exodus, and apartment owners felt the impact as occupancy rates dropped.

As vacancies rose, loan issues began surfacing about two years into the pandemic. By early 2023, Veritas Investments defaulted on a $448M loan covering 62 San Francisco properties, and the trend continued through 2023 and 2024.

There have been some positive outcomes, like Crescent Heights securing a loan modification for the 754-unit NEMA San Francisco complex. But others, such as Goldman Sachs and Ballast Investments handing over 82 properties to Royal Bank of Canada affiliates, signal there’s still fallout ahead.

Multifamily Dive is tracking these problem loans in San Francisco and nationwide, with regular updates on the situation.