Goldman Sachs provides largest apartment financing in San Francisco’s history

Goldman Sachs has provided the largest apartment financing in San Francisco's history. Veritas Investments and partner Baupost Group secured the $815 million in financing on a portfolio of 62 mixed-use multifamily apartment properties in San Francisco.

Goldman Sachs has provided what borrower Veritas Investments is calling the largest apartment financing in San Francisco’s history. 

Veritas and its partners secured the $815 million in financing on a portfolio of 62 mixed-use multifamily apartment properties in San Francisco. The properties include retail and other commercial space.

imagesThe financing allows Veritas to lock in lower rates after acquiring the assets in 2011 and 2012 following a string of foreclosures, including the reported purchase of loans tied to the assets and bankruptcy of previous owner Lembi Group.

Veritas declined to comment on loan terms but said in a prepared statement that the goal of its San Francisco acquisitions is to “deliver consistent returns in a market with high barriers to entry.” 

“This loan demonstrates the ability of the Veritas platform to successfully create value for our residents, tenants, and investors,” said Veritas CEO Yat-Pang Au.

The portfolio consists of more than 1,800 units spanning downtown San Francisco as well as the Pacific Heights, Russian Hill, Marina, Mission District and Haight-Ashbury neighborhoods.

Veritas is one of the largest owners and operators of multifamily, urban retail and mixed-use properties in San Francisco, with roughly $2 billion in real estate assets and 200 multi-family buildings.

PERE, Real Estate Capital’s sister publication, first reported on the financing. Published reports indicate that Boston-based Baupost is one partial owner and partner tied to the portfolio.