- Parkmerced, a 3,165-unit property, has been placed into receivership after a $1.5B loan default.
- Maximus Real Estate Partners failed to repay the CMBS loan in December 2024.
- Barclays and Citigroup initiated legal action to appoint a receiver.
- Parkmerced is now under the control of Douglas Wilson Cos.
- San Fran’s multifamily market is showing signs of recovery with renewed investor interest.
San Francisco’s largest apartment complex, Parkmerced, is now under court-appointed management following a massive loan default.
A judge approved the move after Maximus Real Estate Partners failed to repay a $1.5B CMBS loan that came due in December.
The 3,165-unit complex, located near the San Francisco-Daly City border, is now in the hands of Douglas Wilson Cos., which confirmed this week it has assumed “full control” of the asset.
Legal Action by Lenders
The receivership was requested by lenders Barclays (BCS) and Citigroup (C), who filed suit in San Francisco Superior Court last month against a Maximus affiliate.
The lenders had sought court intervention after a long-delayed loan restructuring agreement collapsed late last year. Despite negotiations and a preliminary deal reached in the fall, the loan modification was never finalized.
The debt had entered special servicing in early 2024 at Maximus’ request. In December, Maximus founder Rob Rosania publicly maintained that the company remained committed to Parkmerced and expected to close on a loan extension “in the coming weeks.” That extension never materialized.
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Shifting Multifamily Landscape
If Parkmerced ends up on the market, it could make a splash in what’s become a recovering multifamily scene in San Francisco.
Investment sales volume in the city climbed 31% in 2024 compared to the prior year, with transactions for properties of 10+ units surging 69%, per Colliers data.
Recent deals reflect a growing buyer appetite. A 36-unit apartment building in Nob Hill recently sold for $14.5M—translating to over $400K per unit, well above the 2024 citywide average of $340K per unit.
The property was purchased by Otrera Real Estate from the family of original developer Theo G. Meyer and Sons.
Affordable Housing in Focus
Another notable trade came as Tenderloin Neighborhood Development Corp. (TNDC) acquired the 108-unit Normandy Apartments for $35M.
Backed by the San Francisco Mayor’s Office of Housing and Community Development, TNDC plans to convert the building into permanently affordable housing for the city’s Western Addition neighborhood.
Looking Ahead
With institutional and private equity firms re-entering the market and values showing signs of stability, distressed or high-profile assets like Parkmerced could attract considerable attention.
Still, any sale will be complicated by the property’s size, capital needs, and its now-public loan default. For now, it remains under receivership as stakeholders sort out the next steps.
