San Francisco Apartment Building Loses $250 Million in Value Amid Crime Crisis – Now Facing Forclosure

A very large apartment building in San Francisco has lost $250 million in value since 2018 as the city has devolved into a hellscape of crime and open drug addiction.

Commercial real estate and retail space in the city have had the same problems.

This could eventually cause a domino effect on San Francisco unlike anything we have ever seen.

The FOX Business Network reports:

San Francisco apartment building facing foreclosure, significant decline in value

An apartment building in San Francisco has reportedly experienced a large decrease in its value compared to where it stood in 2018.

The San Francisco Chronicle, citing data from Trepp, reported Thursday that the building, the Crescent Heights-owned NEMA, had its value decline by $264.6 million, hitting $279 million, more than a 48% drop from 2018, when it was worth $543.6 million.

Trepp had also tweeted about it Wednesday. The company, which tracks structured finance, commercial real estate and banking markets, said the commercial mortgage-backed securities (CMBS) loan connected to it was $384 million.

The Mid-Market area of San Francisco, where the headquarters of X (previously known as Twitter) and other office buildings are located, houses NEMA. The roughly 10-year-old building has 37 floors and 754 rental units, according to the Crescent Heights website.

The change comes just a couple months after another Trepp report indicated the NEMA could potentially have to contend with foreclosure from a mortgage default, according to the San Francisco Chronicle and the San Francisco Business Times. Special servicing reportedly received the loan.

Liberal policies are destroying this city.

#TreppWire Trading Alert: Value of NEMA #SanFrancisco Collateral Slashed

The 754-unit apartment complex backing the $384 million #CMBS loan was cut to $279 million. In 2018 the value was $543.6 million.

Learn about #Trepp: https://t.co/hezyw9iFbh https://t.co/FThMuFcQnA pic.twitter.com/66esH0jGiA

— Trepp (@TreppWire) October 18, 2023

“A 754-unit luxury apartment complex owned by Crescent Heights in San Francisco’s Mid-Market neighborhood lost nearly half its value since the deal priced in 2019, according to #Trepp.” @AndrewCoen Via @commobserverhttps://t.co/OF1hXVwgk2

— Trepp (@TreppWire) October 19, 2023

What will happen to the city of San Francisco when this crash in value hits a majority of properties?