Veritas, San Francisco’s Largest Owner With $ 3 Billion In Reported Assets, Received P3 Small Business Loan
Veritas, the huge real estate company that owns more than 200 properties in San Francisco and has grossed more than $ 3 billion in recent years, has received a payroll protection program loan of the type allegedly aimed at small businesses .
“We requested and received a Payroll Protection Program loan, which we also communicated to all Veritas staff,” the company said in a statement after Mission Local telephoned the CEO of Veritas this morning. , Yang-Pat Au. “The PPP loan allows us to save the jobs of our frontline employees and is essential to our business operations and to retaining these San Francisco employees. “
Veritas said it received a loan of $ 3.6 million. The company put 26 of its 196 employees on leave, and those funds were intended to get them back to work.
San Francisco politicians and tenant activists, however, were stunned by the news that Veritas had requested – and received – this money.
“It is totally outrageous that the largest landlord in San Francisco, with over $ 3 billion in assets and a history of harassing tenants, has received a forgivable loan that is supposed to be for struggling small businesses,” said Fred Sherburn-Zimmer, Executive Director of the Housing Rights Commission.
“We urge them to repay the entire loan and use their years of profit from the conversion of rent-controlled apartments to write off their tenants’ rents for those months. They can afford it.
Supervisor Aaron Peskin, a frequent critic for Veritas, added, “One of San Francisco’s biggest real estate owners and investors shouldn’t be racking up money that should have gone to people in pain.
A number of leading companies received PPP loans during the COVID-19 crisis, although small businesses – including a lot here in San Francisco – came empty.
Following a torrent of negative press, national restaurant chain Shake Shack last month repaid a $ 10 million PPP loan and Ruth’s Chris Steakhouse last month returned a $ 20 million PPP loan.
Neither outfit, however, has a value approaching that of Veritas’ stated value. While a real estate company doesn’t operate on the same business model as a restaurant chain or professional sports franchise, Veritas’ reported value may even exceed that of the Los Angeles Lakers – who also received and then returned the month. last, a loan of 4.6 million dollars.
As well as being the largest landlord in San Francisco – controlling some 5,000 homes in the city – Veritas is also a landlord who frequently finds himself in the crosshairs of elected officials and tenant activists.
He was accused, in several trials, to avoid repairs to its rent-controlled buildings and to harass its aging and rent-controlled tenants. An analysis of the public press 2019 revealed that complaints and citations increased in buildings after they were obtained by Veritas.
Finally, Veritas was accused in March of undertaking unnecessary construction during the early days of the shelter-in-place order – an act that enraged city officials and appears to have led to a tightening of construction restrictions.
“Again, the Veritas idiots overplayed their game and were half too cute and screwed it all up for anyone who keeps their proverbial shit together,” Peskin told Mission Local at the time.
Contacted today to comment on Veritas obtaining this loan, Peskin said the company must return the money so that it “can be redistributed to those who really need it”.
Veritas said the company has no plans to do so.
“With the income of our management company deeply affected and a lack of access to capital, we have laid off a significant portion of our staff and implemented pay cuts at all levels,” it reads. communicated.
“It is the housekeepers, property managers and our resident services team who work hard every day to ensure that our residents staying on site continue to enjoy the high quality living experience that we have to offer. ‘they deserve.”
If you are here regularly, it’s time to intervene. Great reporting is not free.