RBC Real Estate Capital Corporation has sold a $570 million nonperforming loan connected to 66 San Francisco apartment buildings, according to a report from the San Francisco Business Times. The debt was purchased by an affiliate of Revere Housing, positioning Revere to potentially take full ownership of the properties, which total about 1,500 units throughout the city. The sale price for the debt was not disclosed.
Earlier this year, RBC issued a notice of default to Veritas Investments, the previous owner of the buildings, after Veritas failed to pay off the loan when it matured in March 2024. Despite the default status, Veritas continued working with RBC on managing the portfolio and indicated in October that it was seeking a new investor to help retain ownership.
A spokesperson for Veritas confirmed that Veritas will continue as manager of the 66-building portfolio. Between 2015 and 2017, Veritas and its investors spent around $612 million acquiring these properties before refinancing with RBC’s $570 million loan in spring 2022.
Revere Housing was launched this year by Hamilton Zanze, a multifamily investor based in San Francisco. The firm aims to acquire distressed real estate assets and related loans in California’s high-demand markets.
The transaction is part of a broader trend involving large apartment portfolios in San Francisco changing hands or management. Last year, Ballast Investments and Goldman Sachs transferred control of a 1,200-unit portfolio to RBC, which then brought on Hamilton Zanze as property manager. In another recent deal earlier this year, PCCP acquired approximately 1,770 apartments from Veritas Investments and Ivanhoe Cambridge for $540.5 million but retained Veritas as manager.
“Veritas will remain manager of the 66-building portfolio,” said a spokesperson for Veritas Investments.
