Prado Group has picked up $124 million in troubled loans tied to more than 300 apartments in San Francisco owned by Veritas Investments.
The local investor bought a mortgage linked to the 20-building, 304-unit portfolio owned by Veritas, the San Francisco Business Times reported. The seller was Veritas’ lender, an affiliate of New York-based Mack Real Estate Credit Strategies.
Terms of the deal late last month to buy the $124 million in distressed loans, including the price Prado paid, was not disclosed.
Veritas, among San Francisco’s largest apartment landlords, ran aground in November when it didn’t pay an $800 million loan secured by a 75-building portfolio spanning 2,149 units.
The buyer of that portfolio, at auction in August, was San Francisco-based Ballast Investments. Toronto-based Brookfiled also bought an undisclosed stake in the deal.
The Business Times reported in May that a nearly $139 million loan secured by the smaller, 300-unit portfolio had been in default since January.
Assessors’ documents list the loans in that secondary portfolio purchased by Prado as totaling $124 million; the reason for the $15 million discrepancy was not clear.
The Prado Group, founded by Dan Safier and Craig Greenwood, paid more than $50 million in December to buy the former California Pacific Medical Center campus at 3700 California Street in Presidio Heights. The property came with approvals to build 273 homes.
— Dana Bartholomew