Another prominent San Francisco property has become the subject of property owner defaulting on its mortgage.
The San Francisco Business Times reported Swift Real Estate Partners defaulted on a $62.3 million loan for 55 New Montgomery St., a 111-year-old office building. Swift acquired the 100,200-square-foot building for $64.25 million in 2018, but the property is currently vacant. Boston-based CrossHarbor Capital Partners is the lender for the property.
“The company is in active discussions with the various parties regarding potential for resolutions,” said Sam Singer, a spokesman for Swift, who added his company’s goal for the property was to “complete, lease and operate” it. According to CBRE, San Francisco’s Q1 office vacancy rate was 32.1%.
San Francisco has become pockmarked with major properties where the owners defaulted on their loans. Earlier this week, the Westfield San Francisco Centre was returned to its lender after the management company opted to walk away from the 55%-vacant shopping mall.
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Saw this sort of thing before. We in Detroit went through a similar decline during the 1980’s and 90’s. The powers that be in the city were not challenged. It could be argued they benefited from the decline.
Good comparison!