NEMA, one of SF’s biggest apartment buildings, loses half its value

• S.F. Bay Area property map: Here’s who owns every building in region

Crescent Heights didn’t immediately respond to a request for comment, but said in August that “the property’s cash flow can no longer cover the monthly debt service,” according to Trepp. The developer could lose control of the property if it becomes late on mortgage payments and lenders seek to foreclose.

San Francisco landlords have struggled with mortgage payments or given up properties around downtown, including at the San Francisco Centre mall; the Parc 55 and Hilton Union Square hotels; and a massive portfolio of apartments owned by Veritas.

NEMA, at 8 10th St., is next to two major office buildings that have emptied during the pandemic: 1355 Market St., where X (formerly Twitter) slashed most of its staff following Elon Musk’s acquisition; and, to the west, 1455 Market St., which lost its two anchor tenants, Uber and Block. Uber moved its headquarters to Mission Bay and put its space up for sublease, while Block’s lease expired last month.

Occupancy at NEMA was 92% as of March, up from 72% in 2020 but down from 96% in 2018, according to Trepp. The building will require further investment to maintain its “good” condition, according to an inspection report in September.

San Francisco Business Times and the Real Deal earlier reported NEMA’s slashed valuation.

NEMA, which is short for “New Market,” opened in 2013 as the last decade’s tech boom gathered momentum.