When I was an asset manager I supervised the default on $121,000,000 blanket mortgage on a large multifamily assemblage. That was years before the astronomical values today.

Yeah this is astonishing truly and yet not surprising, this area has gone mad and there's the result. Somebody will take it over and house migrants there.

I've never seen anything in seven figures. Seven. And I did OREOs for banks back at the last bust.

There are grifters out there that have defaulted on so many deals that no bank outside of Russia will finance them.

I am not a lender or a commercial Realtor however I am not surprised. They gave no reason to stay and pay.  

Since last summer, higher rates and lagging office demand have led to expectations of substantially higher delinquency levels.

It appears that the tipping point came this month.

CMBS Delinquency Rate Shoots Up in May 2023 – Biggest Jump Since June 2020: Overall Rate Hits 14-Month High

delinquency spike shot up 53 basis points to 3.62%. The rate is the highest level since March 2022. The 53 basis point increase is the largest since June 2020 when delinquencies surged more than 3%.

I am familiar with those hotels. We have stayed in the Union Square area for a night or two for Christmas shopping and dining in the past.

San Francisco survived the 1906 earthquake and it will surmount its current challenges. 

We had two condo complexes go belly up in the 2010 era... one a second time when the first developer who bought it after foreclosure lost it when things continued to decline in value. each were in the 10 million and under category, no huge buildings or developments where I live.

When I managed default for Wachovia

residential: $10,998,000. one SFR

commercial $109,000,000.

I could tell you stories about that crazy time, but would have to .... 

a local HOA was managed by Bank of America for a time.  In the end it was bought by metlife who still owns it.  Seems really weird that HOA could have been leveraged to BofA, but it was by developer, not by homeowners.

Behind all this and more are the shenanigans played by the elite, powerful and the privileged. I wonder in earnest if anyone really gets hurt. Further, I strongly suspect that the many involved profit from these things. This (and similar conduct) reminds me of the movie/book 1984 where they announce chocolate rations have returned from their scarcity & unaffordability status to over-supply & bargain rates. Nobody even seen it one way or the other. Does chocolate even exist? So it is with this

I think we are going to see many big money defaults in commerical property in the next couple of years.  Office parks and shopping malls seem primed for default.

This is the first one that I thought of. Couldn't remember the total but it's going to be a shame. They can no longer operate at a profit there.

I do not recall the amount, but we became the agents when there was a default on a new high rise condominium building. We handled the needed final construction management and the sales.

Hopefully this will be a wakeup call and they'll get their act together. Many folks from CA are moving to the Southeast. I just hope the don't change this area of the US.