San Francisco's Board of Supervisors also sent voters a second measure this cycle: an ordinance eliminating the real property transfer tax's foreclosure exemption for all properties except residential and small mixed-use buildings under five residential units, beginning March 1, 2027. For lenders taking back distressed office and retail assets, the 90%-discount market Plat Street has documented across Issues 3 and 4, foreclosure itself would become a taxable transfer event for the first time. Lenders working through San Francisco distressed-debt positions will likely start pricing this in well before the measure ever reaches a vote.

Watch: Whether workout activity visibly accelerates into the first quarter of 2027 as lenders attempt to close transfers ahead of the March 1 effective date, a pull-forward pattern that would itself become a story worth covering.

Source: SF Board of Supervisors legislation record

Duplicate check: Connects directly to "The 90% Sale Is Real" coverage from Issues 3 and 4.