San Francisco’s notorious real estate giant, Veritas Investments, is facing another potential massive blow as the company defaults on a staggering $652 million in loans. The situation could result in the foreclosure of 66 apartment buildings containing nearly 1,600 rental units across the city.

Once known as San Francisco’s largest landlord, Veritas has been experiencing a dramatic downward spiral in recent years. The company’s reputation has been marred by controversial actions, including accepting a $3.6 million PPP loan in 2020 despite being a $3 billion company and forcing out beloved local businesses like Club Deluxe on Haight Street.

The current default notice, issued by RBC Real Estate Capital Corp, gives Veritas a narrow window to rectify their financial situation. They have until December 17th to bring their loans into “good standing” by paying the full $652 million or potentially negotiating a payment plan.

This isn’t the first financial challenge for Veritas. In 2023 and 2024, the company already defaulted on nearly $1 billion in loans, forcing them to sell 23 buildings comprising 762 apartments. The latest default could potentially strip away their remaining San Francisco real estate portfolio.

For San Francisco renters, this situation represents significant uncertainty. Tenants in these 66 buildings face the possibility of their properties being sold at foreclosure, potentially disrupting their housing stability. The ongoing saga of Veritas highlights the precarious nature of rental markets in one of America’s most expensive cities.

While the company might still negotiate with lenders, the default notice suggests a potentially dramatic reshaping of San Francisco’s rental landscape. Renters and housing advocates are closely watching how this situation will unfold and what implications it might have for the city’s housing ecosystem.

As the December deadline approaches, the future of these 1,566 rental units hangs in a delicate balance, symbolizing the ongoing challenges in San Francisco’s complex real estate market.