One of San Francisco’s largest apartment buildings has lost half its value in five years as the Bay Area has struggled with occupancy issues amid a surge in crime, homelessness and effects of the COVID pandemic.
NEMA, the 754-unit apartment building that was once valued at $543.6million in 2018, has seen its valued halved to $279million in the last half decade, the San Francisco Chronicle reported.
In August, Crescent Heights, the real estate developer behind NEMA said: ‘the property’s cash flow can no longer cover the monthly debt service,’ as the mortgage cost for the developer is at $384million- higher than the overall value of the building.
‘The design inspiration for NEMA was to create a residential building, which would reflect the present and future cultural changes of San Francisco apartment living,’ the architect of NEMA Glenn Rescalvo said on the building’s website.
It’s the latest building to announce its struggles in downtown San Francisco as the streets have become overrun with crime and homeless encampments.
www.dailymail.co.uk/news/article-12651949/San-Francisco-aparment-NEMA-value-vacancy-crime-homeless.html