Kevin V. Nguyen

For nearly two decades, San Franciscans have been sold a pipe dream about&nbsp;Parkmerced. The 3,221-unit development, hastily built in the aftermath of World War II, spans some 152 acres of the west side, adjacent to San Francisco State University, the Stonestown Galleria, and some of the country’s best golf courses.&nbsp;

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For nearly two decades, San Franciscans have been sold a pipe dream about&nbsp;Parkmerced. The 3,221-unit development, hastily built in the aftermath of World War II, spans some 152 acres of the west side, adjacent to San Francisco State University, the Stonestown Galleria, and some of the country’s best golf courses.&nbsp;

Since 2005, a New York-based developer by the name of Robert Rosania has been promising to supercharge the city’s largest housing complex into a “vibrant, pedestrian-focused” neighborhood.&nbsp;

Since 2005, a New York-based developer by the name of Robert Rosania has been promising to supercharge the city’s largest housing complex into a “vibrant, pedestrian-focused” neighborhood.&nbsp;

His vision was to capitalize on San Francisco’s growth potential by building approximately 10,000 homes and a string of neighborhood amenities, including a retail corridor, parks, and stops on the Muni M line, which connects <a href="https://sfstandard.com/2024/09/11/southwest-san-francisco-tale-of-two-cities/">southwest neighborhoods</a> to downtown.&nbsp;

In the city&#8217;s southwest corner, real estate is booming and busting at once

His vision was to capitalize on San Francisco’s growth potential by building approximately 10,000 homes and a string of neighborhood amenities, including a retail corridor, parks, and stops on the Muni M line, which connects <a href="https://sfstandard.com/2024/09/11/southwest-san-francisco-tale-of-two-cities/">southwest neighborhoods</a> to downtown.&nbsp;

But 14 years after his redevelopment proposal was greenlit by the city, Rosania and his investors have yet to break ground.&nbsp;

But 14 years after his redevelopment proposal was greenlit by the city, Rosania and his investors have yet to break ground.&nbsp;

Residential units rest at Parkmerced near San Francisco State University on Friday, Sept. 6, 2024.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/09/202240910-southwestsftaleof2cities_0401_7a2586.jpg?w=2001" alt="The image shows modern townhouses with green and teal facades in front of a large beige apartment building. Cars are parked along the street." class="wp-image-310123"/><figcaption class="wp-element-caption">The same developer has been trying to transform the neighborhood for two decades.</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/09/202240910-southwestsftaleof2cities_0401_7a2586.jpg?w=2001" alt="The image shows modern townhouses with green and teal facades in front of a large beige apartment building. Cars are parked along the street." class="wp-image-310123"/><figcaption class="wp-element-caption">The same developer has been trying to transform the neighborhood for two decades.</figcaption></figure>

During that time, he has broken up with the company with which he embarked on the project, Stellar Management, and launched his own, Maximus Real Estate Partners. He has nearly defaulted on the mortgage twice. And he watched as first the Great Recession crippled the investment market, then as the pandemic struck.&nbsp;

During that time, he has broken up with the company with which he embarked on the project, Stellar Management, and launched his own, Maximus Real Estate Partners. He has nearly defaulted on the mortgage twice. And he watched as first the Great Recession crippled the investment market, then as the pandemic struck.&nbsp;

Last month came what is likely a double death knell. Lenders petitioned the courts to put Parkmerced under receivership, stripping Maxmius of control, and weeks later, the company and Rosania were named in a sexual harassment lawsuit.

Last month came what is likely a double death knell. Lenders petitioned the courts to put Parkmerced under receivership, stripping Maxmius of control, and weeks later, the company and Rosania were named in a sexual harassment lawsuit.

Here is a rundown of how a billion-dollar housing development comes undone.&nbsp;

Here is a rundown of how a billion-dollar housing development comes undone.&nbsp;

<h2 class="wp-block-heading" id="h-timeline-nbsp">Timeline&nbsp;</h2>

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<h2 class="wp-block-heading" id="h-timeline-nbsp">Timeline&nbsp;</h2>

2005: Rosania, principal at New York-based Stellar Management, acquires a controlling interest in the Parkmerced property alongside Boston-based Rockpoint Group, with plans to revive the aging development. The deal reportedly <a href="https://www.sfgate.com/business/article/N-Y-group-buys-S-F-complex-Parkmerced-sold-to-2566517.php">values the complex at $700 million</a>.&nbsp;

2005: Rosania, principal at New York-based Stellar Management, acquires a controlling interest in the Parkmerced property alongside Boston-based Rockpoint Group, with plans to revive the aging development. The deal reportedly <a href="https://www.sfgate.com/business/article/N-Y-group-buys-S-F-complex-Parkmerced-sold-to-2566517.php">values the complex at $700 million</a>.&nbsp;

2010: The ownership group announces it is in <a href="https://www.sfgate.com/business/article/Fate-of-S-F-s-Parkmerced-complex-in-limbo-3262009.php">danger of defaulting on a $500 million mortgage</a> but still plans to move forward with a multidecade expansion project that would triple the amount of housing at the site while delivering new retail and offices and public infrastructure improvements.&nbsp;

2010: The ownership group announces it is in <a href="https://www.sfgate.com/business/article/Fate-of-S-F-s-Parkmerced-complex-in-limbo-3262009.php">danger of defaulting on a $500 million mortgage</a> but still plans to move forward with a multidecade expansion project that would triple the amount of housing at the site while delivering new retail and offices and public infrastructure improvements.&nbsp;

“If worse came to worst and they could not continue with the project, the development agreement only adds value to the property,&#8221; Michael Yarne, former development adviser in the Office of Economic and Workforce Development, tells the Chronicle.

“If worse came to worst and they could not continue with the project, the development agreement only adds value to the property," Michael Yarne, former development adviser in the Office of Economic and Workforce Development, tells the Chronicle.

“If worse came to worst and they could not continue with the project, the development agreement only adds value to the property,&#8221; Michael Yarne, former development adviser in the Office of Economic and Workforce Development, tells the Chronicle.

2011: The redevelopment is entitled after the Board of Supervisors <a href="https://www.sfgate.com/bayarea/article/Parkmerced-transformation-wins-approval-2370555.php">approves the multidecade plan in a 6-5 vote</a>. The controversial proposal includes replacing 1,500 rent-controlled townhomes with 7,200 “energy-efficient” units over 20 to 30 years.&nbsp;

2011: The redevelopment is entitled after the Board of Supervisors <a href="https://www.sfgate.com/bayarea/article/Parkmerced-transformation-wins-approval-2370555.php">approves the multidecade plan in a 6-5 vote</a>. The controversial proposal includes replacing 1,500 rent-controlled townhomes with 7,200 “energy-efficient” units over 20 to 30 years.&nbsp;

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2012: Rosania leaves Stellar to form Maximus Real Estate. In a lawsuit filed in New York&#8217;s <a href="https://www.nycourts.gov/Reporter/pdfs/2016/2016_30910.pdf">district court known as the Supreme Court,</a> Rosania claims he was ousted from the firm by his longtime mentor and partner, Laurence Gluck. In a court filing, Gluck (who died in 2024) responds that Rosania made a deal to refinance Parkmerced without his knowledge.

2012: Rosania leaves Stellar to form Maximus Real Estate. In a lawsuit filed in New York's <a href="https://www.nycourts.gov/Reporter/pdfs/2016/2016_30910.pdf">district court known as the Supreme Court,</a> Rosania claims he was ousted from the firm by his longtime mentor and partner, Laurence Gluck. In a court filing, Gluck (who died in 2024) responds that Rosania made a deal to refinance Parkmerced without his knowledge.

2012: Rosania leaves Stellar to form Maximus Real Estate. In a lawsuit filed in New York&#8217;s <a href="https://www.nycourts.gov/Reporter/pdfs/2016/2016_30910.pdf">district court known as the Supreme Court,</a> Rosania claims he was ousted from the firm by his longtime mentor and partner, Laurence Gluck. In a court filing, Gluck (who died in 2024) responds that Rosania made a deal to refinance Parkmerced without his knowledge.

2013: While the group is still facing legal challenges related to Parkmerced, Maximus pitches a luxury development near the 16th St. BART station that critics dub the “Monster in the Mission.”&nbsp;

2013: While the group is still facing legal challenges related to Parkmerced, Maximus pitches a luxury development near the 16th St. BART station that critics dub the “Monster in the Mission.”&nbsp;

2014: Maximus refinances the troubled loan, bringing in a group of investors led by New York-based 601 W Co. to buy out control from Rockpoint and Fortress Investment Group, <a href="https://www.wsj.com/articles/investor-group-gets-behind-parkmerced-development-1416955502">valuing the property at more than $1.35 billion</a>.&nbsp;

2014: Maximus refinances the troubled loan, bringing in a group of investors led by New York-based 601 W Co. to buy out control from Rockpoint and Fortress Investment Group, <a href="https://www.wsj.com/articles/investor-group-gets-behind-parkmerced-development-1416955502">valuing the property at more than $1.35 billion</a>.&nbsp;

Rosania is retained as owner and managing partner. A San Francisco judge dismisses an environmental lawsuit challenging the development’s sustainability goals.&nbsp;

Rosania is retained as owner and managing partner. A San Francisco judge dismisses an environmental lawsuit challenging the development’s sustainability goals.&nbsp;

2015: The city Planning Department <a href="https://sfplanning.org/project/parkmerced#timeline">approves Phase 1</a> of the project, which covers primarily residential development on the western portion of the site. Construction of this portion, with approximately 1,668 units, is scheduled to start in 2016 and be completed by 2022.&nbsp;

2015: The city Planning Department <a href="https://sfplanning.org/project/parkmerced#timeline">approves Phase 1</a> of the project, which covers primarily residential development on the western portion of the site. Construction of this portion, with approximately 1,668 units, is scheduled to start in 2016 and be completed by 2022.&nbsp;

They keys belonging to a family living in an RV and the map of Parkmerced apartments showing the buildings where some members of the mobile home community who previously lived on Zoo Drive will live after receiving housing vouchers on Monday, August 19, 2024. After a mayor's office effort to remove an RV community that relocated from a street near Stonestown Mall to one beside a Recreation Center, the families received housing vouchers at Parkmerced. The keys to at least 22 apartments were handed to immigrant families who had been targeted for living on RV parked in Zoo Drive in recent weeks, following an overturned local injunction that allowed the city to be more aggressive in its sweeps of encampments as a result of the Supreme Court's ruling in June.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/08/20240819rvfamilyfolo-12_3b561d.jpg?w=2500" alt="A cluster of gold keys on a ring and a black key fob rest on a detailed map, with a marked area labeled &quot;Construction Coming Soon.&quot;" class="wp-image-303725"/><figcaption class="wp-element-caption">Keys belonging to a family that used to live in an RV sit atop a map of Parkmerced. The complex has housed some needy residents during and after the pandemic. </figcaption></figure>

2017: The below-market requirement of the first phase is approved by the Mayor’s Office of Housing and Community Development. Despite the approvals, construction never begins.

2017: The below-market requirement of the first phase is approved by the Mayor’s Office of Housing and Community Development. Despite the approvals, construction never begins.

2019: Maximus refinances its Parkmerced debt again, this time for $1.8 billion from Barclays, Citigroup, and Aimco. The loan has a maturity date of December 2024. Around this time, Maximus earns approval for a 697-unit project in San Leandro at 899 Alvarado St.&nbsp;

2019: Maximus refinances its Parkmerced debt again, this time for $1.8 billion from Barclays, Citigroup, and Aimco. The loan has a maturity date of December 2024. Around this time, Maximus earns approval for a 697-unit project in San Leandro at 899 Alvarado St.&nbsp;

Construction is supposed to start in the spring/summer of 2020.&nbsp;

Construction is supposed to start in the spring/summer of 2020.&nbsp;

Meanwhile, Maximus <a href="https://missionlocal.org/2020/02/monster-mashed-developer-pulls-plug-on-contentious-1979-mission-project-puts-land-up-for-sale/">pulls the plug</a> on its Mission project in February. A month later, the Covid-19 pandemic shuts down San Francisco.&nbsp;

Meanwhile, Maximus <a href="https://missionlocal.org/2020/02/monster-mashed-developer-pulls-plug-on-contentious-1979-mission-project-puts-land-up-for-sale/">pulls the plug</a> on its Mission project in February. A month later, the Covid-19 pandemic shuts down San Francisco.&nbsp;

2023: Aimco sells 20% of its loan mezzanine position in Parkmerced <a href="https://www.aimco.com/aimco-closes-on-partial-sale-of-parkmerced-mezzanine-loan-and-announces-amended-agreement-for-sale-of-remaining-investment/">for $33.5 million</a>, giving the unnamed purchaser an option to acquire the remaining amount for $134 million.&nbsp;

2023: Aimco sells 20% of its loan mezzanine position in Parkmerced <a href="https://www.aimco.com/aimco-closes-on-partial-sale-of-parkmerced-mezzanine-loan-and-announces-amended-agreement-for-sale-of-remaining-investment/">for $33.5 million</a>, giving the unnamed purchaser an option to acquire the remaining amount for $134 million.&nbsp;

In the thick of the pandemic, Parkmerced’s vacancy rates reportedly approach 30%. Complaints <a href="https://www.sfchronicle.com/bayarea/article/parkmerced-apartments-problems-19423636.php">continue to pile up</a> at the Department of Building Inspection, reporting mold, squatters, and deferred maintenance.&nbsp;

In the thick of the pandemic, Parkmerced’s vacancy rates reportedly approach 30%. Complaints <a href="https://www.sfchronicle.com/bayarea/article/parkmerced-apartments-problems-19423636.php">continue to pile up</a> at the Department of Building Inspection, reporting mold, squatters, and deferred maintenance.&nbsp;

2024: Maximus requests in April that its $1.5 billion CMBS loan enter special servicing, a process in which an intermediary is brought in to help renegotiate terms. Credit rating agency Morningstar reports that the property is about 83% occupied, with cash flow “well below” the point needed to cover its existing debt payments.&nbsp;

2024: Maximus requests in April that its $1.5 billion CMBS loan enter special servicing, a process in which an intermediary is brought in to help renegotiate terms. Credit rating agency Morningstar reports that the property is about 83% occupied, with cash flow “well below” the point needed to cover its existing debt payments.&nbsp;

The Roa family’s view from the kitchen of their new apartment in Parkmerced on Tuesday, Aug. 20, 2024. After a mayor's office effort to remove an RV community that relocated from a street near Stonestown Mall to one beside a Recreation Center, at least 22 housing vouchers were handed out for housing at Parkmerced, following an overturned local injunction that allowed the city to be more aggressive in its sweeps of encampments as a result of the Supreme Court's ruling in June.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/08/20240819rvfamilyfolo-part2-9.jpg?w=2500" alt="The image shows a view through a high window of a sunlit building, with a large tree, a small green utility box, and a parking lot with several cars below." class="wp-image-303738"/><figcaption class="wp-element-caption">The view of Parkmerced from an apartment. As the property lurches toward foreclosure, complaints of deferred maintenance pile up.</figcaption></figure>

The city’s Department of Homelessness and Supportive Housing provides vouchers for portions of the complex <a href="https://sfstandard.com/2024/08/21/this-is-a-win-families-are-moving-from-rvs-to-apartments-at-last/">to be leased out to needy residents</a>.&nbsp;

&#8216;This is a win&#8217;: Families are moving from RVs to apartments at last

The city’s Department of Homelessness and Supportive Housing provides vouchers for portions of the complex <a href="https://sfstandard.com/2024/08/21/this-is-a-win-families-are-moving-from-rvs-to-apartments-at-last/">to be leased out to needy residents</a>.&nbsp;

The effort to refinance the loan <a href="https://www.bizjournals.com/sanfrancisco/news/2025/03/19/parkmerced-receiver-san-francisco-maximus.html">falls apart in December</a> after months of negotiations, according to the San Francisco Business Times.

The effort to refinance the loan <a href="https://www.bizjournals.com/sanfrancisco/news/2025/03/19/parkmerced-receiver-san-francisco-maximus.html">falls apart in December</a> after months of negotiations, according to the San Francisco Business Times.

2025: In March, a San Francisco judge grants lenders’ request to place Parkmerced under receivership, putting San Diego-based Douglas Wilson Co. in charge of the property. Although Maximus can still technically work out a deal to keep control of Parkmerced, experts say it is highly unlikely.

2025: In March, a San Francisco judge grants lenders’ request to place Parkmerced under receivership, putting San Diego-based Douglas Wilson Co. in charge of the property. Although Maximus can still technically work out a deal to keep control of Parkmerced, experts say it is highly unlikely.

On March 24, Rosania’s personal assistant, Richaele Affannato, sues him and the company <a href="https://webapps.sftc.org/ci/CaseInfo.dll?CaseNum=CGC25623590&amp;SessionID=F50D10E60762FB0A2F53D6B5E92F377F9E6DD884">in San Francisco Superior Court</a> for sexual harassment, retaliation, wrongful termination, and failure to pay all wages due.&nbsp;

On March 24, Rosania’s personal assistant, Richaele Affannato, sues him and the company <a href="https://webapps.sftc.org/ci/CaseInfo.dll?CaseNum=CGC25623590&amp;SessionID=F50D10E60762FB0A2F53D6B5E92F377F9E6DD884">in San Francisco Superior Court</a> for sexual harassment, retaliation, wrongful termination, and failure to pay all wages due.&nbsp;

Among the allegations, Affannato says she was required to buy male performance-enhancement pills and that Rosania left pornography showing on a television at his San Francisco apartment when she was required to be present. Additionally, she said he showed a female receptionist a bag of dildos.&nbsp;

Among the allegations, Affannato says she was required to buy male performance-enhancement pills and that Rosania left pornography showing on a television at his San Francisco apartment when she was required to be present. Additionally, she said he showed a female receptionist a bag of dildos.&nbsp;

Rosania and Maximus have not responded to the lawsuit and did not respond to a request for comment.

Rosania and Maximus have not responded to the lawsuit and did not respond to a request for comment.

Parkmerced: How a long-promised billion-dollar housing project fell apart

Stephanie K. Baer

Madewell is closing its location at San Francisco Centre, marking the latest departure at the long-struggling Downtown San Francisco mall.

Madewell is closing its location at San Francisco Centre, marking the latest departure at the long-struggling Downtown San Francisco mall.

The denim and contemporary clothing brand said in a message on its website that the store at 845 Market St. will close on Monday, directing customers to shop at its location in the Marina District.

The denim and contemporary clothing brand said in a message on its website that the store at 845 Market St. will close on Monday, directing customers to shop at its location in the Marina District.

Madewell did not immediately respond to The Standard&#8217;s request for comment on Thursday.

Madewell did not immediately respond to The Standard's request for comment on Thursday.

Madewell did not immediately respond to The Standard&#8217;s request for comment on Thursday.

READ MORE: <a href="https://sfstandard.com/2023/10/10/downtown-san-francisco-centre-receiver/">New Development Could Lead to Sale of Struggling Downtown San Francisco Mall</a>

New development could lead to sale of struggling downtown San Francisco mall

READ MORE: <a href="https://sfstandard.com/2023/10/10/downtown-san-francisco-centre-receiver/">New Development Could Lead to Sale of Struggling Downtown San Francisco Mall</a>

The shuttering comes after a string of closures at San Francisco Centre. Last year, <a href="https://sfstandard.com/2023/08/27/san-francisco-nordstrom-shoppers-say-goodbye/">Nordstrom closed</a> and Westfield <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">gave up control</a> of the mall.

Inside the downtown San Francisco Nordstrom on its last day

Westfield gives up downtown San Francisco mall

The shuttering comes after a string of closures at San Francisco Centre. Last year, <a href="https://sfstandard.com/2023/08/27/san-francisco-nordstrom-shoppers-say-goodbye/">Nordstrom closed</a> and Westfield <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">gave up control</a> of the mall.

In late September, Wilmington Trust and Wells Fargo <a href="https://sfstandard.com/2023/10/10/downtown-san-francisco-centre-receiver/">sued in an attempt to force foreclosure</a> on the mall, alleging that the entities associated with Westfield had defaulted on their loan payments. A San Francisco judge appointed a third party to manage the property during the ongoing litigation in October.

In late September, Wilmington Trust and Wells Fargo <a href="https://sfstandard.com/2023/10/10/downtown-san-francisco-centre-receiver/">sued in an attempt to force foreclosure</a> on the mall, alleging that the entities associated with Westfield had defaulted on their loan payments. A San Francisco judge appointed a third party to manage the property during the ongoing litigation in October.

Another store will close at struggling downtown San Francisco mall

The Standard Staff

WeWork, the shared-office company that once was valued as high as $47 billion, filed for Chapter 11 bankruptcy reorganization on Monday night.&nbsp;

WeWork, the shared-office company that once was valued as high as $47 billion, filed for Chapter 11 bankruptcy reorganization on Monday night.&nbsp;

The company said it was beginning the reorganization process in the U.S. and Canada “to rationalize its lease portfolio and position the company for sustainable, long-term growth for the benefit of all stakeholders.”

The company said it was beginning the reorganization process in the U.S. and Canada “to rationalize its lease portfolio and position the company for sustainable, long-term growth for the benefit of all stakeholders.”

The company said during this process, WeWork spaces would remain open and operational, and there would be “no change to the way the Company operates for its members.”

The company said during this process, WeWork spaces would remain open and operational, and there would be “no change to the way the Company operates for its members.”

Trading in shares of WeWork had been halted earlier&nbsp;Monday as rumors swirled that the office sharing company would seek bankruptcy protection.

Trading in shares of WeWork had been halted earlier&nbsp;Monday as rumors swirled that the office sharing company would seek bankruptcy protection.

Shares of WeWork, which cost more than $400 two years ago, could be had Monday for less than $1.

Shares of WeWork, which cost more than $400 two years ago, could be had Monday for less than $1.

The specter of bankruptcy has hovered over WeWork for some time. In August, the New York company sounded the alarm over its ability to remain in business. But cracks had begun to appear several years ago.

The specter of bankruptcy has hovered over WeWork for some time. In August, the New York company sounded the alarm over its ability to remain in business. But cracks had begun to appear several years ago.

WeWork is paying the price for aggressive expansion in its early years. The company went public in October 2021 after its first attempt to do so two years earlier collapsed spectacularly. The debacle led to the ouster of founder and CEO Adam Neumann, whose erratic behavior and exorbitant spending spooked early investors.

WeWork is paying the price for aggressive expansion in its early years. The company went public in October 2021 after its first attempt to do so two years earlier collapsed spectacularly. The debacle led to the ouster of founder and CEO Adam Neumann, whose erratic behavior and exorbitant spending spooked early investors.

Japan&#8217;s SoftBank stepped in to keep WeWork afloat, acquiring majority control over the company.

Japan's SoftBank stepped in to keep WeWork afloat, acquiring majority control over the company.

Japan&#8217;s SoftBank stepped in to keep WeWork afloat, acquiring majority control over the company.

Despite efforts to turn the company around since Neumann&#8217;s departure—including significant cuts to operating costs and rising revenue—WeWork has struggled in a commercial real estate market that has been rocked by the rising costs of borrowing money, as well as a shifting dynamic for millions of office workers now checking into their offices remotely.

Despite efforts to turn the company around since Neumann's departure—including significant cuts to operating costs and rising revenue—WeWork has struggled in a commercial real estate market that has been rocked by the rising costs of borrowing money, as well as a shifting dynamic for millions of office workers now checking into their offices remotely.

Despite efforts to turn the company around since Neumann&#8217;s departure—including significant cuts to operating costs and rising revenue—WeWork has struggled in a commercial real estate market that has been rocked by the rising costs of borrowing money, as well as a shifting dynamic for millions of office workers now checking into their offices remotely.

In September, when WeWork announced plans to renegotiate nearly all of its leases, CEO David Tolley noted that the company&#8217;s lease liabilities accounted for more than two-thirds of its operating expenses for the second quarter of this year—remaining &#8220;too high&#8221; and &#8220;dramatically out of step with current market conditions.&#8221;

In September, when WeWork announced plans to renegotiate nearly all of its leases, CEO David Tolley noted that the company's lease liabilities accounted for more than two-thirds of its operating expenses for the second quarter of this year—remaining "too high" and "dramatically out of step with current market conditions."

In September, when WeWork announced plans to renegotiate nearly all of its leases, CEO David Tolley noted that the company&#8217;s lease liabilities accounted for more than two-thirds of its operating expenses for the second quarter of this year—remaining &#8220;too high&#8221; and &#8220;dramatically out of step with current market conditions.&#8221;

Last month, WeWork skipped hefty interest payments—kicking off a 30-day grace period before an event of default. And last week, WeWork disclosed a forbearance agreement with bondholders that extended negotiations by one week prior to triggering a default.

Last month, WeWork skipped hefty interest payments—kicking off a 30-day grace period before an event of default. And last week, WeWork disclosed a forbearance agreement with bondholders that extended negotiations by one week prior to triggering a default.

WeWork files for Chapter 11 bankruptcy

Kevin Truong

The value of one of Downtown San Francisco’s largest luxury apartment buildings has been cut nearly in half, according to commercial real estate data provider Trepp.

The value of one of Downtown San Francisco’s largest luxury apartment buildings has been cut nearly in half, according to commercial real estate data provider Trepp.

NEMA, the glass-covered tower at 8 10th St., has seen its value drop from $543.6 million in 2018 to $279 million. Trepp notes that this decline means the value sits well below the loan balance, making the debt more expensive than the property itself.

NEMA, the glass-covered tower at 8 10th St., has seen its value drop from $543.6 million in 2018 to $279 million. Trepp notes that this decline means the value sits well below the loan balance, making the debt more expensive than the property itself.

The Real Deal <a href="https://therealdeal.com/sanfrancisco/2023/10/18/sf-luxe-apartment-complex-nema-loses-nearly-half-its-value/">first reported</a> the news.&nbsp;

The Real Deal <a href="https://therealdeal.com/sanfrancisco/2023/10/18/sf-luxe-apartment-complex-nema-loses-nearly-half-its-value/">first reported</a> the news.&nbsp;

The 754-unit apartment complex on the corner of 10th and Market streets opened in 2013 as a part of the <a href="https://www.google.com/search?q=mid+market+kevin+truong&amp;rlz=1C5GCEM_en&amp;oq=mid+market+kevin+truong&amp;gs_lcrp=EgZjaHJvbWUqBggAEEUYOzIGCAAQRRg7MggIARAAGBYYHjIICAIQABgWGB4yCAgDEAAYFhgeMgoIBBAAGIYDGIoFMgoIBRAAGIYDGIoF0gEIMzQ1OGowajeoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8">Mid-Market revival</a> kicked off in part by the city’s tech boom and the so-called Twitter tax break. Amenities at the building across the street from Twitter headquarters include multiple public plazas, a fitness center and a 60-foot lap pool.

The 754-unit apartment complex on the corner of 10th and Market streets opened in 2013 as a part of the <a href="https://www.google.com/search?q=mid+market+kevin+truong&amp;rlz=1C5GCEM_en&amp;oq=mid+market+kevin+truong&amp;gs_lcrp=EgZjaHJvbWUqBggAEEUYOzIGCAAQRRg7MggIARAAGBYYHjIICAIQABgWGB4yCAgDEAAYFhgeMgoIBBAAGIYDGIoFMgoIBRAAGIYDGIoF0gEIMzQ1OGowajeoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8">Mid-Market revival</a> kicked off in part by the city’s tech boom and the so-called Twitter tax break. Amenities at the building across the street from Twitter headquarters include multiple public plazas, a fitness center and a 60-foot lap pool.

Then came the pandemic, which hollowed out the neighborhood of major tech tenants like Uber, Block and DoorDash. Concerns about public safety and street conditions led to the closure of the <a href="https://t.co/pdEREdSAXP">nearby Whole Foods</a> less than a year after opening.&nbsp;

Then came the pandemic, which hollowed out the neighborhood of major tech tenants like Uber, Block and DoorDash. Concerns about public safety and street conditions led to the closure of the <a href="https://t.co/pdEREdSAXP">nearby Whole Foods</a> less than a year after opening.&nbsp;

NEMA’s debt-service coverage ratio, which measures the ability of a property’s cash flow to pay its debt, has been below 1 since 2020, a troubling sign for the ability of the developer to control the building.

NEMA’s debt-service coverage ratio, which measures the ability of a property’s cash flow to pay its debt, has been below 1 since 2020, a troubling sign for the ability of the developer to control the building.

According to Trepp data, occupancy in the beginning of 2023 was 92%, compared to 90% in 2021 and 72% in 2020. However, revenue has seen a steep decline during the pandemic, from $36.8 million in 2019 to $29.2 million in 2022.

According to Trepp data, occupancy in the beginning of 2023 was 92%, compared to 90% in 2021 and 72% in 2020. However, revenue has seen a steep decline during the pandemic, from $36.8 million in 2019 to $29.2 million in 2022.

Loan data from Trepp said the main loan on the property is delinquent and that the deal has been transferred to special servicing, which are enlisted to avoid a loan default.&nbsp;

Loan data from Trepp said the main loan on the property is delinquent and that the deal has been transferred to special servicing, which are enlisted to avoid a loan default.&nbsp;

The cause for the transfer into special servicing is “imminent monetary default,” according to Trepp loan documents.

The cause for the transfer into special servicing is “imminent monetary default,” according to Trepp loan documents.

Crescent Heights did not respond to a request for comment.&nbsp;

Crescent Heights did not respond to a request for comment.&nbsp;

The property has a bit of a troubled development history. Crescent Heights purchased the site in 2006 and originally intended to build for-sale condos, but switched up their business plan in the wake of the Great Recession.&nbsp;

The property has a bit of a troubled development history. Crescent Heights purchased the site in 2006 and originally intended to build for-sale condos, but switched up their business plan in the wake of the Great Recession.&nbsp;

The difficult economic environment meant that the project didn’t break ground until 2011.&nbsp;

The difficult economic environment meant that the project didn’t break ground until 2011.&nbsp;

The current challenges in commercial real estate are squeezing many property owners between lower revenues and higher debt payments.

The current challenges in commercial real estate are squeezing many property owners between lower revenues and higher debt payments.

The underwater mortgages are leading an increasing number of property owners to stop debt payments, giving buildings back to their lenders, including <a href="https://sfstandard.com/2023/06/05/real-estate-group-halts-loan-payments-two-san-francisco-hotels/">Park Hotels and Resorts</a> and a <a href="https://www.google.com/search?q=back+to+lender+kevin+truong&amp;rlz=1C5GCEM_en&amp;oq=back+to+lender+kevin+truong&amp;gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQIRigATIHCAIQIRiPAjIHCAMQIRiPAtIBCDM2OTFqMGo3qAIAsAIA&amp;sourceid=chrome&amp;ie=UTF-8">brand-new condo complex</a> in Mission Bay.

Union Square woes: San Francisco hotel owner stops debt payments on Hilton, Parc 55

The underwater mortgages are leading an increasing number of property owners to stop debt payments, giving buildings back to their lenders, including <a href="https://sfstandard.com/2023/06/05/real-estate-group-halts-loan-payments-two-san-francisco-hotels/">Park Hotels and Resorts</a> and a <a href="https://www.google.com/search?q=back+to+lender+kevin+truong&amp;rlz=1C5GCEM_en&amp;oq=back+to+lender+kevin+truong&amp;gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQIRigATIHCAIQIRiPAjIHCAMQIRiPAtIBCDM2OTFqMGo3qAIAsAIA&amp;sourceid=chrome&amp;ie=UTF-8">brand-new condo complex</a> in Mission Bay.

Downtown San Francisco luxury apartment tower loses half its value

Lauren Saria

As prolific chef and restaurateur George Chen moves to expand his empire to Silicon Valley, his most well-known restaurant, <a href="https://chinalivesf.com/">China Live</a>, is once again at risk of closure.&nbsp;

As prolific chef and restaurateur George Chen moves to expand his empire to Silicon Valley, his most well-known restaurant, <a href="https://chinalivesf.com/">China Live</a>, is once again at risk of closure.&nbsp;

The multilevel restaurant on the edge of Chinatown is being sued for $1.1 million in unpaid rent and is being evicted, court documents filed in late January reveal. The motion alleges Chen has not paid rent since September.&nbsp;

The multilevel restaurant on the edge of Chinatown is being sued for $1.1 million in unpaid rent and is being evicted, court documents filed in late January reveal. The motion alleges Chen has not paid rent since September.&nbsp;

Chen disputes that he owed rent payments during that period because a jury trial to settle the lawsuit, which was originally set to start in August, is yet to begin. &#8220;We are not paying rent because we&#8217;re legally not liable while in litigation,&#8221; Chen said via text. Chen said he is close to reaching a settlement, which would also resolve the possible eviction.

Chen disputes that he owed rent payments during that period because a jury trial to settle the lawsuit, which was originally set to start in August, is yet to begin. "We are not paying rent because we're legally not liable while in litigation," Chen said via text. Chen said he is close to reaching a settlement, which would also resolve the possible eviction.

Chen disputes that he owed rent payments during that period because a jury trial to settle the lawsuit, which was originally set to start in August, is yet to begin. &#8220;We are not paying rent because we&#8217;re legally not liable while in litigation,&#8221; Chen said via text. Chen said he is close to reaching a settlement, which would also resolve the possible eviction.

The move to evict comes just weeks after Chen and his wife, Cindy Wong-Chen, announced plans to open a second food hall, Asia Live, at Westfield Valley Fair in Santa Clara.

The move to evict comes just weeks after Chen and his wife, Cindy Wong-Chen, announced plans to open a second food hall, Asia Live, at Westfield Valley Fair in Santa Clara.

The new spot, expected to open this fall, will expand on the China Live concept by offering food from not only China but Southeast Asia, India, Korea, and Japan. At 13,000 square feet, the bi-level project will include a restaurant, bar, and retail section, along with seating for 350.

The new spot, expected to open this fall, will expand on the China Live concept by offering food from not only China but Southeast Asia, India, Korea, and Japan. At 13,000 square feet, the bi-level project will include a restaurant, bar, and retail section, along with seating for 350.

China Live is one of many Asian Restaurants hoping for an increase of customers during the Asia-Pacific Economic Cooperation (APEC) trade summit in San Francisco on Tuesday August 22, 2023. Tens of thousands of travelers from Asia, potentially including top world leaders like China’s President Xi Jinping, will come to San Francisco this November to attend the Asia-Pacific Economic Cooperation (APEC) trade summit, which will bring a major boost to local Asian restaurants.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/FEATURED_APECAsianFood-081423.jpg?w=2500" alt="A modern three-story building with large windows displays a vertical &quot;China Live&quot; sign. It's beside a street with cars and nearby smaller shops." class="wp-image-195079"/><figcaption class="wp-element-caption">China Live, on the border of Chinatown and North Beach, is being evicted.</figcaption></figure>

Representatives for Westfield Valley Fair did not respond to a request for comment.&nbsp;

Representatives for Westfield Valley Fair did not respond to a request for comment.&nbsp;

Chen has said he plans to open <a href="https://sf.eater.com/2025/1/8/24339415/china-live-opens-santa-clara-south-bay-asia-live">Asia Live locations in New York and Paris</a>. He announced the Paris restaurant in 2023; it is expected to open into a 35,000-square-foot space by the Louvre that was formerly occupied by a Printemps department store.

Chen has said he plans to open <a href="https://sf.eater.com/2025/1/8/24339415/china-live-opens-santa-clara-south-bay-asia-live">Asia Live locations in New York and Paris</a>. He announced the Paris restaurant in 2023; it is expected to open into a 35,000-square-foot space by the Louvre that was formerly occupied by a Printemps department store.

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Despite these ambitious plans, Chen faces trouble in San Francisco. He has been locked in a convoluted legal battle involving landlord Cypress Properties, which has attempted to evict China Live, at 644 Broadway, multiple times. Meanwhile, Cypress Properties is being sued by its lender after defaulting on a $21.2 million loan, leading the court to place control of the China Live property with receiver Gregg Williams of Trident Pacific. Prior to that move last March, Chen and Cypress reached an agreement in which he would pay $125,000 in monthly rent. In the motion filed last month, Williams says Chen has failed to do so.&nbsp;

Despite these ambitious plans, Chen faces trouble in San Francisco. He has been locked in a convoluted legal battle involving landlord Cypress Properties, which has attempted to evict China Live, at 644 Broadway, multiple times. Meanwhile, Cypress Properties is being sued by its lender after defaulting on a $21.2 million loan, leading the court to place control of the China Live property with receiver Gregg Williams of Trident Pacific. Prior to that move last March, Chen and Cypress reached an agreement in which he would pay $125,000 in monthly rent. In the motion filed last month, Williams says Chen has failed to do so.&nbsp;

Attorneys for Williams did not respond to a request for comment.

Attorneys for Williams did not respond to a request for comment.

With the future of China Live unclear, Chen has reportedly been <a href="https://www.sfchronicle.com/realestate/article/china-live-restaurant-sf-19972659.php">exploring a move</a> to the <a href="https://sfstandard.com/2023/10/21/crocker-galleria-downtown-san-francisco-empty-mall/">Crocker Galleria</a>, a shopping center in the Financial District. <a href="https://eighttables.com/">Eight Tables</a>, the fine-dining restaurant located on the second floor of China Live, closed in September, and Chen plans to reopen it as a new concept, a spokesperson says. China Live, located on the ground floor, and Cold Drinks Bar, on the second floor, remain open.&nbsp;

Crocker Galleria, downtown San Francisco’s other mall, is down to three tenants

With the future of China Live unclear, Chen has reportedly been <a href="https://www.sfchronicle.com/realestate/article/china-live-restaurant-sf-19972659.php">exploring a move</a> to the <a href="https://sfstandard.com/2023/10/21/crocker-galleria-downtown-san-francisco-empty-mall/">Crocker Galleria</a>, a shopping center in the Financial District. <a href="https://eighttables.com/">Eight Tables</a>, the fine-dining restaurant located on the second floor of China Live, closed in September, and Chen plans to reopen it as a new concept, a spokesperson says. China Live, located on the ground floor, and Cold Drinks Bar, on the second floor, remain open.&nbsp;

As China Live expands to Silicon Valley, it’s being evicted in SF

You're invited to an exclusive, hands-on cocktail class at Lower Nob Hill’s stylish DACHA, where you’ll shake, stir, sip, and show off.

Summer Cocktail Class

Join researcher and nonprofit director Bill Delzell for a private reception exploring a time capsule that still feels relevant today.

In the early 1980s, a Bay Area picker stumbled upon something incredible: a plastic garbage bag filled with 2,042 processed 35mm color slides and 102 rolls of carefully labeled black-and-white film. The images — all 8,417 of them — captured a seminal moment in San Francisco counterculture, from 1966 through the 1967 Summer of Love to 1970.

The photographer remains unknown, and most of the photos have gone unseen — until now.

Join researcher and nonprofit director Bill Delzell for a private reception exploring a time capsule that still feels relevant today. Based on a story by San Francisco Standard culture reporter Sam Mondros.

Find/Seek: Stories and Photos from San Francisco's Past
Tuesday, May 20
6pm-8:30pm
Four One Nine
419 Tenth Street
San Francisco

Complimentary wine and bites. 
Invitation only for guests 21 and over.

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As China Live expands to Silicon Valley, it’s being evicted in SF