According to a report by the San Francisco Business Times, Goldman Sachs and Ballast Investments have recently handed over 1,211 apartments in San Francisco to their lender. This move marks a significant shift in the city’s multifamily sector as the pair transferred ownership of three residential portfolios consisting of 82 apartment buildings to affiliates of Royal Bank of Canada through deed-in-lieu transactions on July 17.
The decision comes after Goldman and Ballast defaulted on $687.5 million in debt provided by RBC for these portfolios last year. Instead of facing foreclosure proceedings from RBC, they chose to transfer ownership through this alternative method.
Property records show that as of July 17, Goldman and Ballast owed more than $729.8 million on these three portfolios combined. The Business Times had previously reported that talks were underway between them and RBC regarding handing over the properties earlier this spring. These properties were acquired for a total sum of $704 million between 2017 and 2020.
