From Wolf Street, December 10:
While landlords are muttering, “And this too shall pass.”
The award-winning luxury-apartment property NEMA San Francisco, with 754 units in four linked towers completed in 2013, on the corner of 10th Street and Market Street (NEw MArket, get it?), has become part of the story of suddenly and deeply plunging occupancy rates as a large number of tenants have packed up and left during the Pandemic.
For the three largest towers, the occupancy rate has plunged to 70% as of September, according to data by Trepp, which tracks commercial mortgage backed securities (CMBS). The occupancy rate of the smallest building as of September is not available. But as of June, it dropped to 80% and may have deteriorated further since then. The four towers are across the street from Twitter’s headquarters, part of which Twitter is now trying to sublease because it won’t need that much space, after its switch to work from home
Each of the four towers, ranging from 10 stories to 35 stories, is collateral of a mortgage that total $274 million. The 10-year interest-only mortgages, a fairly typical arrangement, have been securitized into a “private-label” CMBS.....
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