After deeding 51 buildings back to the bank in lieu of foreclosure in January, the Lembis are at risk of losing another 23 of their remaining 250-ish apartment buildings in San Francisco. From J.K. Dineen:
[A CIM Group] affiliate bought $121 million of distressed Lembi debt from Column Financial on Dec. 19 of last year. The affiliate alleges in a complaint filed in San Francisco Superior Court March 4 that the Lembi subsidiary Trophy Properties [which owns 23 properties] has been in default on payments since Feb. 10 on two loans, one for $116.1 million and one for $5.2 million. Interest accrued and outstanding from Jan. 9 to March 2 amounted to $1.8 million, and interest on the unpaid balance is accruing at a rate of $50,600 a day, according to court documents. That amounts to about $18.4 million a year — more than double the approximate $8 million the 23 properties generate in rents, according to rent roll information on the buildings included in court documents filed with the complaint.
The 23 properties at risk: 3475 16th Street, 3000 24th Street, 360 32nd Avenue, 427 34th Avenue, 9 August Alley, 2101 Bay, 1650 California, 650 Church, 1345 Clement, 43 Cole, 347 Eddy, 1745 Franklin, 345 Green, 305 Hyde, 1456 Jones, 2235 Laguna, 1516 Larkin, 2117 Market, 2135 Market, 230 Oak, 1070 Post, 840 Van Ness, 956 Valencia.
∙ CIM Group goes for Lembi buildings [Business Times]
∙ Cash Flows Catch Up To The Lembi Group [SocketSite]