Huge SF Apartment Complex in Default

The San Francisco Chronicle is reporting that the owner of the city's 116-acre Parkmerced apartment complex is expected to announce that the loan on the property has fallen into default.

May 26, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user orphanjones

The San Francisco Chronicle is reporting that the owner of the city’s 116-acre Parkmerced apartment complex is expected to announce that the loan on the property has fallen into default.

Stellar Management and co-owner Rockpoint Group are said to owe at least $500 million on two separate notes, though this was not confirmed by the companies. However, Stellar executive vice president Seth Mallen did confirm to the newspaper through a statement that Parkmerced and its lenders have engaged a special servicer. Mallen did not name the servicer.

Currently Parkmerced has slightly more than 1600 rental units in 11 residential towers. An additional 1,538 apartments are contained in two-story townhouses. The Chronicle reported that the owners have proposed a $1.3 billion plan to triple these numbers and make some units available for purchase.

Sources told the newspaper that the expansion plan is proceeding.