Apartment Syndications in Rent Control Areas

[Christie Gahan]

Lots of Multi-Family loans resetting in the next year and a lot of folks think there will be a lot of turbulence with the ability to get a new loan and refi.  Questions about what will this do to the value of the building, etc.  

How does the climate of MF intersect with the political climate of rent control?   Imagine a large apartment complex in California going into foreclosure.  What would be the next step for the rent activists?  Do we have a mass squatter's rights scenario?  They could all refuse to pay rent.  Does this make the bank/lender less likely or more likely to refi the loan?  On the one hand, no one is paying rent.  On the other hand, the lender doesn't want the property.  Who wins or loses in these scenarios?