Major Commercial Investments Still Crashing

Globest.com reported that the 3,165-unit apartment complex in San Francisco, Parkmerced, is in default after the owner, Maximus Real Estate Partners defaulted on a $1.5 billion dollar loan backed by the complex.  There have also been articles like one in the March 20, 2025 Business Times “Paramount wrote the value of its investment in the KPMG building to zero as the path forward for the downtown San Francisco office tower remains uncertain, the Manhattan-based investor and an unidentified joint venture partner reported an $87.2 million impairment charge -a decline in value for 55 Second St. during the fourth quarter of 2024, according to regulatory filings. That adjustment, coupled with roughly $119.3 million impairment recorded at the end of 2023, brought the building to zero. In other words, the value of the 25-story 370,000 square foot building has fallen below the debt it is tied to, wiping out Paramount’s equity in the property.” What can be positive about this? The eventual buyers of these two properties will be getting relative bargains…and relative is the key word…