| Goods |
JPMorgan Chase has provided a total of $390 million of mortgage debt against a portfolio of 62 apartment properties with 1,853 units in San Francisco that previously was owned by Lembi Group, which had filed for bankruptcy in 2011.
The 62 properties are now owned by a venture of Veritas Investments Inc., which is led by investor Yat-Pang Au, and Baupost Group. It had acquired debt against the properties through a number of transactions and took over the collateral in 2011, after Lembi's filing.
Lembi at one point had been the biggest apartment landlord in the city and had heavily leveraged its portfolio in 2006 and 2007 with loans that often were written based on the expectation that rents would be jacked up quickly to market levels. But most of the portfolio's units are subject to San Francisco's rent-control laws, which restrict rental increases unless tenants vacate. And tenants are able to remain in their units year after year, seeing only nominal rent increases. |