Founder and CEO of Mercado Libre, Marcos CalperinHe shared his strong opinion about the city of San Francisco, California through his Twitter account. Along with a graphic from a recent article Financial Times, That explains how the city appears in the red in terms of hotel revenue compared to other cities in the United States.
“San Francisco, which has been fighting capital for more than a decade, is beginning to suffer the consequences,” he wrote. Graphic originally published Financial Times On June 17, it was part of an article: “defaults Raise alarm bells about the stability of commercial real estate in San FranciscoAbout how homeowners have returned some of their most valuable assets to lenders. The tweet had more than half a million impressions and hundreds of interactions.
In a series of posts, Calperin defended his idea in the face of skepticism from various users. One of them asked him:What does San Francisco specifically have to contend with as a capital city?? If I remember correctly, it was a very important starting point.
To which he replied: “Some examples: too high taxes, too many regulations for corporations, ban on building new houses, crimes against private property under 1000 USD not punishable, attack on meritocracy (they canceled promotions in public schools).
To present your point of view, Galperin shared a video from another account on the social network, with the caption: “On certain streets in San Francisco, every other retail store is empty.” You can see the route in the images showing the available premises.
The premise of the article, taken by the renowned businessman, is that lenders in the San Francisco commercial real estate market “prepare defaults Billions of dollars in debt after the owners of the largest shopping center And the hotel in the metropolis must stop paying their debts and return the keys to the city’s most valuable property.
Last week, Westfield and Brookfield Properties announced it They also defaulted on a $558 million loan to a major San Francisco shopping center And they will hand over the facilities to the lenders. Park Hotels & Resorts also said it expects to sell its two flagship San Francisco hotels, the Hilton Union Square and Park 55, after defaulting on $725 million in debt.
These are defaults were A distress signal, signals Financial Times, From the owners of various offices, hotels and retailers in San FranciscoIt had to contend with a reduction in tourism and business travel due to the pandemic, as well as other factors such as cutbacks in technology companies, the deportation of residents, and crime.
“The defaults Commercial properties in the city can be auctioned, lenders are rushing to offload assets at significant discounts to reduce their exposure and protect bondholders,” the quoted media outlet added. This event will trigger a domino effect that will make it difficult for owners to refinance their loans. Because banks are very careful while giving loans.
According to Financial TimesAcceleration defaults Concerns about declining municipal tax revenues across many real estate asset classes, which in turn “It will feed the spiral of disaster, an economic and social spiral that cannot be reversed.”
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