A San Francisco developer’s plan to convert a vacant commercial space into housing has hit obstacles as they face foreclosure proceedings, according to the San Francisco Chronicle. The project, led by local company Group-I, aims to transform part of the Warfield office building on Market Street into 34 new apartments. However, their lender Evertrust Bank recently issued a notice of default for their $26 million loan.
The filing states that Group-I has 90 days to resolve the default before Evertrust Bank can take control of or sell off the property through foreclosure. It is uncertain how this will impact Group-I’s plans for repurposing the century-old office building in Mid-Market District. The developer originally proposed converting 25,000 square feet inside in late 2022 and may face challenges due to regulatory barriers and recent legislation passed last summer.
Photo credit: sanfranman59/Wikipedia.
This article was originally published on Connect CRE.
