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;

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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 height="1667" width="2500" 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>

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<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

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

Eddie Sun

A leading real estate analysis firm has connected a so-called San Francisco “crime shadow” with the city’s next possible commercial real estate collapses in a first-of-its-kind study.&nbsp;

A leading real estate analysis firm has connected a so-called San Francisco “crime shadow” with the city’s next possible commercial real estate collapses in a first-of-its-kind study.&nbsp;

The Trepp study examines the impact of crime on business performance and predicted some corporate, retail and hotel buildings in San Francisco could be at risk of defaulting on loans due to their proximity to areas plagued with high violent and property crime rates.&nbsp;

The Trepp study examines the impact of crime on business performance and predicted some corporate, retail and hotel buildings in San Francisco could be at risk of defaulting on loans due to their proximity to areas plagued with high violent and property crime rates.&nbsp;

These properties include the Ritz-Carlton hotel in Lower Nob Hill and the Hyatt Regency hotel in SoMa, as well as the Financial District’s One Market Plaza office complex, <a href="https://sfstandard.com/2023/07/20/autodesk-renews-lease-in-downtown-san-francisco-headquarters/">a once-heralded corporate space</a> that Google and Autodesk are currently leasing. <a href="https://therealdeal.com/sanfrancisco/2023/05/01/visa-puts-190k-sf-headquarter-in-san-francisco-on-sublease-market/" target="_blank" rel="noreferrer noopener">Visa subleased</a> the building earlier this year to move its headquarters just south of Oracle Park.

Autodesk renews lease in downtown San Francisco headquarters

These properties include the Ritz-Carlton hotel in Lower Nob Hill and the Hyatt Regency hotel in SoMa, as well as the Financial District’s One Market Plaza office complex, <a href="https://sfstandard.com/2023/07/20/autodesk-renews-lease-in-downtown-san-francisco-headquarters/">a once-heralded corporate space</a> that Google and Autodesk are currently leasing. <a href="https://therealdeal.com/sanfrancisco/2023/05/01/visa-puts-190k-sf-headquarter-in-san-francisco-on-sublease-market/" target="_blank" rel="noreferrer noopener">Visa subleased</a> the building earlier this year to move its headquarters just south of Oracle Park.

“One Market Plaza is a high-quality, trophy office asset that is ~96% leased and has seen more leasing activity since the onset of Covid than any other major office campus in San Francisco,” a spokesperson for the office complex said in a statement.

“One Market Plaza is a high-quality, trophy office asset that is ~96% leased and has seen more leasing activity since the onset of Covid than any other major office campus in San Francisco,” a spokesperson for the office complex said in a statement.

Trepp's 'crime shadow' map showing business struggles overlaid on a crime heat map. The map indicates many defaults and closures are occuring in high-crime areas.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/FireShot-Capture-416-Trepp_SF-Crime-Rate-Study-8.16.23-.docx-Google-Docs-docs.google.com_.png?w=1527" alt="" class="wp-image-192799"/><figcaption class="wp-element-caption">Trepp&#8217;s &#8220;crime shadow&#8221; map shows business struggles overlaid on a crime heat map. The map indicates many defaults and closures are occurring in high-crime areas.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/FireShot-Capture-416-Trepp_SF-Crime-Rate-Study-8.16.23-.docx-Google-Docs-docs.google.com_.png?w=1527" alt="" class="wp-image-192799"/><figcaption class="wp-element-caption">Trepp's "crime shadow" map shows business struggles overlaid on a crime heat map. The map indicates many defaults and closures are occurring in high-crime areas.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/FireShot-Capture-416-Trepp_SF-Crime-Rate-Study-8.16.23-.docx-Google-Docs-docs.google.com_.png?w=1527" alt="" class="wp-image-192799"/><figcaption class="wp-element-caption">Trepp&#8217;s &#8220;crime shadow&#8221; map shows business struggles overlaid on a crime heat map. The map indicates many defaults and closures are occurring in high-crime areas.</figcaption></figure>

The report, put together by Trepp, a firm that provides data analytics on banking and commercial real estate, identified San Francisco’s most financially dire properties and their proximity to high-crime neighborhoods in the city, such as Union Square and the Tenderloin District. The analysis firm solely measured violent and property crimes in their report.

The report, put together by Trepp, a firm that provides data analytics on banking and commercial real estate, identified San Francisco’s most financially dire properties and their proximity to high-crime neighborhoods in the city, such as Union Square and the Tenderloin District. The analysis firm solely measured violent and property crimes in their report.

Leasors who have defaulted or returned commercial buildings to their lenders, such as with the <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">Westfield San Francisco Centre in SoMa</a> and <a href="https://sfstandard.com/2023/06/05/real-estate-group-halts-loan-payments-two-san-francisco-hotels/">two Hilton hotel locations in Union Square</a>, showed the same patterns of running businesses in an area deemed under a “crime shadow” while facing financial woes.

Leasors who have defaulted or returned commercial buildings to their lenders, such as with the <a href="https://sfstandard.com/2023/06/12/westfield-gives-up-downtown-san-francisco-mall/">Westfield San Francisco Centre in SoMa</a> and <a href="https://sfstandard.com/2023/06/05/real-estate-group-halts-loan-payments-two-san-francisco-hotels/">two Hilton hotel locations in Union Square</a>, showed the same patterns of running businesses in an area deemed under a “crime shadow” while facing financial woes.

Trepp calculated the financial health of city properties by measuring its debt-service coverage ratio, or a firm’s available cash compared with its outstanding debts. The identified buildings all had a deficit or were <a href="https://sfstandard.com/2023/08/15/iconic-san-francisco-hotel-has-lost-90-of-its-value-owner-says/">facing a cash crunch</a>, with loan payments coming due before 2026.

Iconic San Francisco hotel has lost 90% of its value, filing says

Trepp calculated the financial health of city properties by measuring its debt-service coverage ratio, or a firm’s available cash compared with its outstanding debts. The identified buildings all had a deficit or were <a href="https://sfstandard.com/2023/08/15/iconic-san-francisco-hotel-has-lost-90-of-its-value-owner-says/">facing a cash crunch</a>, with loan payments coming due before 2026.

The property and violent crime data used in the Trepp report was taken from the San Francisco Police Department’s incident report. The department did not respond to requests for comment by publication time.

The property and violent crime data used in the Trepp report was taken from the San Francisco Police Department’s incident report. The department did not respond to requests for comment by publication time.

Trepp's heat map showing the prevalence of property and violent crime by location. The crime data is pulled from SFPD's incidence report.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/FireShot-Capture-415-Trepp_SF-Crime-Rate-Study-8.16.23-.docx-Google-Docs-docs.google.com_.png?w=1165" alt="" class="wp-image-192798"/><figcaption class="wp-element-caption">Trepp&#8217;s heat map shows the prevalence of property and violent crime by location. The crime data is pulled from the San Francisco Police Department incident report.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/FireShot-Capture-415-Trepp_SF-Crime-Rate-Study-8.16.23-.docx-Google-Docs-docs.google.com_.png?w=1165" alt="" class="wp-image-192798"/><figcaption class="wp-element-caption">Trepp's heat map shows the prevalence of property and violent crime by location. The crime data is pulled from the San Francisco Police Department incident report.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/FireShot-Capture-415-Trepp_SF-Crime-Rate-Study-8.16.23-.docx-Google-Docs-docs.google.com_.png?w=1165" alt="" class="wp-image-192798"/><figcaption class="wp-element-caption">Trepp&#8217;s heat map shows the prevalence of property and violent crime by location. The crime data is pulled from the San Francisco Police Department incident report.</figcaption></figure>

The report found that businesses tend to perform worse in areas with high crime: More than 65% of businesses in these neighborhoods stagnated or experienced losses. This relationship was most apparent for hotels, where “a small decline in crime may be accompanied by a huge improvement in lodging properties’ financial performance.”

The report found that businesses tend to perform worse in areas with high crime: More than 65% of businesses in these neighborhoods stagnated or experienced losses. This relationship was most apparent for hotels, where “a small decline in crime may be accompanied by a huge improvement in lodging properties’ financial performance.”

However, the report also observed a mixed relationship between changes in crime rate and business performance. Crime rates in Union Square, the Tenderloin and the Mission District all decreased from 2018 to 2022, but the number of registered businesses in these neighborhoods also dropped during this period.&nbsp;

However, the report also observed a mixed relationship between changes in crime rate and business performance. Crime rates in Union Square, the Tenderloin and the Mission District all decreased from 2018 to 2022, but the number of registered businesses in these neighborhoods also dropped during this period.&nbsp;

The report suggests that the relationship between crime rates and business performance could be “bidirectional,” meaning a decline in commerce can also reduce the likelihood of crime, due to reduced foot traffic and storefront spaces.

The report suggests that the relationship between crime rates and business performance could be “bidirectional,” meaning a decline in commerce can also reduce the likelihood of crime, due to reduced foot traffic and storefront spaces.

About 35% of businesses also experienced relatively high growth in areas where crimes increased, the report found.&nbsp;

About 35% of businesses also experienced relatively high growth in areas where crimes increased, the report found.&nbsp;

Trepp added that the tight-knit geography of San Francisco makes it difficult to accurately measure how crime affects business from one neighborhood or community to the next.

Trepp added that the tight-knit geography of San Francisco makes it difficult to accurately measure how crime affects business from one neighborhood or community to the next.

Hyatt and Marriott, Ritz-Carlton’s parent company, did not respond to requests for comment by publication time.

Hyatt and Marriott, Ritz-Carlton’s parent company, did not respond to requests for comment by publication time.

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