Call it an estate walk of disgrace.
Loss-making hotel and office building owners in San Francisco who defaulted or left San Francisco now appear on the interactive map, According to the San Francisco Chronicle.
this new map That includes 13 ominous downtown commercial properties that have defaulted on their loans or been in dire financial trouble since the pandemic, according to Chronicle’s analysis.
That includes five hotels and six vacant office buildings stretching from the Financial District to Market South to Nob Hill.
Park Hotels and Resorts in Virginia said it would stop paying $725 million in debt at the city’s two largest hotels, the Hilton San Francisco Union Square and Parc 55 San Francisco, both of which are on the map.
This spring, Redco Development and AEW Capital Management left San Francisco’s historic First National Bank building after failing to make mortgage payments in what is believed to be near ground zero for city office forfeiture. 1 Montgomery Street buildings on the map.
The combined market value of the 13 mapped properties is unknown, but the city values them at $3.3 billion for tax purposes.
Missed payments, or in some cases defaults, can cause banks and other lenders to take buildings to cover losses. Some upside-down owners hand over the keys and walk away.
This, in turn, can lower property prices, as well as those of their financially well-off neighbors, the Chronicle reported.
combine work remotely, downsizing, leaving company and More and more big box retail stores are closing their doors, which would depress the overall value of downtown real estate. A third of offices on the market are now vacant.
The end result is decrementing Property and business tax revenue Fund public services.A city estimate says annual tax losses could Reaching nearly $200 million.
“We’re not even close to the bottom,” Ken Rosen, chair of UC Berkeley’s Haas Fisher Center for Real Estate and Urban Economics, told The Chronicle.
— Dana Bartholomew
