San Francisco’s real estate landscape is about to undergo another seismic shift as Veritas Investments, once the city’s largest landlord, faces a potential foreclosure of 66 apartment buildings representing nearly 1,600 rental units.

The massive default involves a staggering $652 million loan from RBC Real Estate Capital Corp, with a critical deadline of December 17th looming. If Veritas cannot bring the loan into “good standing” by making full payment, these properties could be sold at foreclosure within 90 days.

This isn’t the first financial challenge for Veritas. The company has been experiencing significant financial turbulence in recent years, including defaulting on nearly $1 billion in loans and being forced to sell 23 buildings (762 apartments) in 2024. Their reputation took additional hits after controversially accepting a $3.6 million PPP loan in 2020 despite being a $3 billion company.

The potential foreclosure represents a significant moment in San Francisco’s ongoing housing dynamics. Tenants in these 66 buildings now face uncertainty about their future housing situations, potentially adding more pressure to the city’s already complex rental market.

While the default notice provides Veritas with options like a potential payment plan, the situation remains precarious. Large financial institutions and major landlords often engage in complex negotiations, but the threat of losing such a substantial property portfolio is very real.

The unfolding scenario highlights the ongoing challenges in San Francisco’s real estate market, where economic pressures continue to reshape housing landscapes and impact thousands of residents directly.

As of now, Veritas has limited time to prevent this massive property sell-off, with the clock ticking toward the December 17th deadline.