San Francisco-based Prado Group acquired another 721 apartments across more than 20 buildings after purchasing the outstanding debt on the assets from lender Rialto Capital.
The portfolio of apartments in the Mission District, Russian Hill, Lower Haight, Nob Hill, Noe Valley, Alamo Square and the Tenderloin were formerly held by Veritas Investments, which has lost thousands of units in San Francisco over the past few years.
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The acquisition is Prado Group’s second major purchase from Veritas, once the city’s largest multifamily landlord.
In 2025, Veritas defaulted on a $570M loan that was tied to roughly 1,500 apartments in San Francisco. Prado Group seized control of the buildings through multiple deed-in-lieu-of-foreclosure actions, the San Francisco Business Times reported.
The 23 buildings had about $362M in defaulted debt when the transaction closed, records with the San Francisco County Assessor-Recorder’s Office showed.
In 2023, Veritas defaulted on $1B in debt that was secured by more than 2,450 units across 95 buildings, the San Francisco Chronicle reported. Prado Group and Baupost Group acquired 20 of those buildings and later divested 17 of them for about $100M.
While the acquisition price for the latest deal wasn’t disclosed, Prado Group took out a $265M loan that is secured by the buildings from an affiliate of Prudential Global Investment Management.
It is also the second major multifamily acquisition in the past month. Newly formed real estate and investment firm Fort Point Real Estate Partners acquired a 928-unit, 59-building portfolio for about $440M in early November.
The assets were part of a 1,200-unit, 82-building portfolio formerly held by Ballast Investments and Goldman Sachs. The properties were returned to lender Royal Bank of Canada in 2024 in a deed-in-lieu agreement.
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