"The Amelia apartment deal enabled Krishna Koganti and Seetaram Vemulapalli, both from Santa Clara County, to purchase the complex from a lender that had previously foreclosed on the multifamily property. In October 2024, SREC Amelia Owner, which is located in the same Chicago office as Toronto-based Slate Asset Management, foreclosed on the loan that financed The Amelia apartments. The unpaid debt at the time was $23 million."
"Separately, ArtHaus Partners and Belay Investment Group teamed to foreclose on a loan in a streamlined fashion that enabled them to gain ownership of nine apartment complexes in Oakland's Lake Merritt area, according to documents filed on Nov. 25 with the Recorder's Office. The unpaid debt at the time of the foreclosure was $57 million. Both deals suggest that the Oakland apartment market remains in rough shape."
Two recent Oakland apartment transactions indicate weakening multifamily values. Krishna Koganti and Seetaram Vemulapalli paid $21 million for the 83-unit Amelia at 411 29th St. in Pill Hill, acquiring the property from a lender that had foreclosed in October 2024 when the unpaid debt was $23 million. The latest purchase equates to roughly $253,000 per unit and was about 8.7% below the foreclosure debt. ArtHaus Partners and Belay Investment Group paid $30 million to buy the loan on a nine-property Lake Merritt portfolio, gaining 268 units while the unpaid debt stood at $57 million. Investors and lenders are acquiring Oakland apartments at distressed prices or via foreclosures.
Read at The Mercury News
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