Huge SF Apartment Complex in Default
- May 26, 2010
May 26, 2010
By Allison Landa, News Editor
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.