UBS SOLD another group of San Francisco-area apartment communities it took back in lieu of foreclosure from the troubled Lembi Group.
Local investor Russell Flynn is the latest buyer, purchasing a total of seven San Francisco apartment assets. Flynn has bought 15 Lembi communities since September from the Swiss bank, which has now sold about half of the 51-building portfolio it took back in 2009 after the Lembi family went into default on the various properties. The most recent portfolio included buildings in the Haight and Lower Nob Hill areas of San Francisco.
This is the latest in a series of transactions involving communities that were part of Lembi’s 8,000-unit multifamily housing empire. Flynn remarks, “These are not as prime as the first tranche we bought, but [they are] still really good buildings.” Generally, buildings in the Tenderloin are selling for about $125,000 per unit, while buildings in more upscale areas are trading above $200,000 per unit, according to sources.
Source: San Francisco Business Times and NAA’s Industry Insider