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   From: yourdime@outlook.com   
      
   NEMA, one of San Francisco’s largest apartment buildings, has lost almost   
   half its value in five years as it faces an “imminent default” risk on its   
   mortgage, according to a new report.   
      
   The 754-unit apartment tower was valued at $543.6 million in 2018 but is   
   now valued at $279 million by real estate data firm Trepp. That’s below   
   the value of owner Crescent Heights’ $384 million mortgage, an ominous   
   sign indicative of the Mid-Market area’s struggles.   
      
   Crescent Heights didn’t immediately respond to a request for comment, but   
   said in August that “the property’s cash flow can no longer cover the   
   monthly debt service,” according to Trepp. The developer could lose   
   control of the property if it becomes late on mortgage payments and   
   lenders seek to foreclose.   
      
   San Francisco landlords have struggled with mortgage payments or given up   
   properties around downtown, including at the San Francisco Centre mall;   
   the Parc 55 and Hilton Union Square hotels; and a huge portfolio of   
   apartments owned by Veritas.   
      
   NEMA, at 8 10th St., is next to two major office buildings that have   
   emptied during the pandemic: 1355 Market St., where X (formerly Twitter)   
   slashed most of its staff following Elon Musk’s acquisition; and, to the   
   west, 1455 Market St., which lost its two anchor tenants, Uber and Block.   
   Uber moved its headquarters to Mission Bay and put its space up for   
   sublease, while Block’s lease expired last month.   
      
   Occupancy at NEMA was 92% as of March, up from 72% in 2020 but down from   
   96% in 2018, according to Trepp. The building will require further   
   investment to maintain its “good” condition, according to an inspection   
   report in September.   
      
   San Francisco Business Times and the Real Deal earlier reported NEMA’s   
   slashed valuation.   
      
   NEMA, which is short for “New Market,” opened in 2013 as the last decade’s   
   tech boom gathered momentum.   
      
   Its amenities include three outdoor terraces, a 60-foot lap pool, a fire   
   pit and grills, while tech workers said its proximity to fast-growing tech   
   companies was a draw.   
      
   But COVID was a heavy blow to San Francisco’s apartment market as tens of   
   thousands of residents moved away.   
      
   Natixis originated NEMA’s loan in 2019 and a special servicer has been   
   appointed, indicating a default is possible.   
      
   https://www.sfchronicle.com/realestate/article/s-f-building-nema-loses-   
   half-its-value-18435865.php   
      
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