According to a report by the San Francisco Business Times, Goldman Sachs and Ballast Investments have recently transferred ownership of 1,211 apartments in San Francisco to their lender. The properties were part of three residential portfolios consisting of 82 apartment buildings and were handed over through deed-in-lieu transactions with affiliates of the Royal Bank of Canada on July 17.
This move comes after a year since Goldman and Ballast defaulted on $687.5 million in debt owed to RBC for these portfolios. It was seen as an alternative solution instead of RBC initiating foreclosure proceedings.
Property records indicate that as of July 17, there was still more than $729.8 million in unpaid debt remaining for these properties under Goldman and Ballast’s ownership. Earlier this spring, it was reported that discussions were underway between the two companies to transfer control over these assets to RBC. They had originally acquired them for a total cost exceeding $704 million from 2017-2020.
