By Oscar Palma : missionlocal – excerpt
The California real estate empire of Mosser Living, a company that owns 61 buildings in San Francisco but has been selling off parts of its portfolio, could lose another 428 housing units in the coming months, according to documents obtained by Mission Local.
Mosser is one of the largest corporate landlords in San Francisco. The company, founded in 1955, received receivership orders for 14 of its San Francisco buildings — 13 residential and one commercial — between June 5 and Oct. 15.
Receivership typically occurs when two parties, like a landlord and a lender, are in disagreement. The affected buildings are in the Tenderloin, Nob Hill, Pacific Heights, SoMa and Hayes Valley, and house 428 units.
While receivership does not, on its own, mean buildings are for sale, many have already received notices for public auction.
“Notices of trustee sale,” which indicate a default on a loan and a subsequent sale, were sent to six Mosser buildings between August and October that house 141 units. Those face imminent foreclosure if Mosser doesn’t come to an agreement with its lender, JP Morgan Chase.
The rest of the buildings could soon follow. If Mosser offloads them, the sales would continue a trend in which the firm is shedding properties. The real-estate company, which owns 3,500 units in California, has struggled to recover from the pandemic…
Steven Edrington, a real estate broker and real estate expert, suspected that Mosser may not be meeting its debt-service coverage ratio — the ratio between a business’ revenue and the debt it has to pay back. That, he said, may be leading them to sell of units.
“I think that’s the issue,” said Edrington. “They have too many vacancies. They’ve had to lower the rent and there’s also higher operating costs.”
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Attached map indicates that most of the properties are located in the up-zoned Market and Van Ness area and around Marina Cow Hollow. If one were to hazard a guess, it appears that the REIT-profits are not paying off as expected. This should further tame to high-end real estate speculation by the gullible public. There is also a lack of competent real estate managers or appears to be. Somehow the business model is failing to work as promised.