San Francisco, CA
In a significant move within the San Francisco real estate market, the Prado Group has taken ownership of 20 multifamily buildings and a vacant lot from Veritas Investments. This acquisition, part of a larger divestment strategy by Veritas, marks a notable shift in the city's property landscape.
Details of the Transaction
The deal, which closed on November 17, saw Prado Group purchasing the debt tied to these properties for $124 million in October. The loan portfolio consisted of seven loans totaling $115.8 million in outstanding debt. Veritas Investments, one of San Francisco's largest apartment landlords, had defaulted on several of these loans in January, as reported by the San Francisco Business Times.
Prado Group's Expanding Portfolio
This acquisition is a strategic addition to Prado Group's growing portfolio. The properties, which encompass a 316-unit portfolio, are now under the management of Prado Group, a company co-founded by Dan Safier and Craig Greenwood. This move follows Prado Group's earlier purchase in December for more than $50 million of the former California Pacific Medical Center campus at 3700 California Street in Presidio Heights, which came with approvals to build 273 homes.
Veritas' Divestment Strategy
Veritas' decision to sell these assets is part of a broader divestment strategy. In addition to the sale to Prado Group, Veritas also sold a larger multifamily portfolio to Ballast Investments and Brookfield for $800 million. This portfolio includes 75 multifamily properties with 2,149 units, further indicating a significant reshaping of its holdings.
Implications for the San Francisco Market
The transfer of these properties from Veritas to Prado Group represents more than just a change in ownership; it signifies a shift in the dynamics of the San Francisco real estate market. With Prado Group's increasing influence and strategic acquisitions, the landscape of property management and development in the city is poised for transformation.
For those interested in the evolving San Francisco real estate market or considering investment opportunities, this development is one to watch closely.
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