The foreclosure auction block is looking a little more diverse these days.
After months of featuring mostly multifamily properties, sales across Texas now include a more even mix of hotels, retail, apartments and even land. Multifamily properties made up almost 70 percent of the loans flagged for default for March’s sales, according to Roddy’s Foreclosure Listing service. In April, apartment complexes account for about half of the properties up for auction.
Houston is typically the hardest hit, but it’s not as definitive in April. Of the 36 properties facing foreclosure, 12 are in Harris County, down from 16 last month.
The sum of the loans flagged for foreclosure in April also dipped, after topping $800 million for four months in a row. This month’s sum totals $644 million, according to Roddy’s.
Here are the biggest loans up for auction. It’s possible that some of these borrowers and lenders will reach agreements to avoid auction.
Houston
Northbrooke Apartments Homes could be auctioned off on Tuesday in Harris County. Arbor Realty Trust provided the $32.5 million loan for the property at 17111 Hafer Drive in Houston. The 240-unit property built in 2002 is owned by Mudra Investments, which is based in Richmond and managed by Raxit and Rahul Patel. The loan works out to $135,400 per unit.
Austin
A loan tied to a 68-acre plot of land on Lake Travis is the biggest new loan to hit Travis County’s foreclosure auction sale in April. Stallion Texas Real Estate Fund provided the $8 million loan for the purchase of the plot at 17831 West Reeds Park Road. The owner is Neu Community, an Austin company that promises to build modular homes “for the EV era.”
San Antonio
Spring Branch-based Gan Group is the owner of the multifamily property at 5100 Newcome Drive facing foreclosure. Colliers provided the $17 million loan for the senior living facility built in 1985.
Dallas
The $120 million loan tied to five Dallas properties purchased by syndicator WindMass Capital in 2021 was flagged for default in March. Voya provided the loan, which works out to $85,348 per unit on the 1,400-unit portfolio. The properties are “traveling” housing finance corporation deals.
The properties involved include: The Beckham, a 260-unit property at 12111 Audelia Road, valued at $32.6 million; The Bernard, a 314-unit property at 11991 Audelia Road, valued at $32.9 million; The Bentley, a 284-unit property at 12121 Audelia Road, valued at $29.9 million; The Blake, a 309-unit property at 9669 Forest Lane, valued at $32.3 million; and The Baxter, a 239-unit property at 9737 Forest Lane, valued at $23.9 million. The properties were built in 1983 and 1984, records show.
Fort Worth
WindMass is also the owner of Tarrant County’s largest commercial real estate loan flagged for default this month. Ventura Apartments, a 657-unit apartment complex at 2601 Furrs Street, was built in 1976. UBS provided the $63.3 million loan to the Dallas-based syndicator in 2022, loan documents show. The loan works out to $96,347 per unit.
Repeat offenders
Of the properties scheduled for auction, 11 have been flagged for foreclosure sales multiple times, sometimes reflecting a loan modification or ongoing litigation. Here are the properties that have been on the block before, according to Roddy’s Foreclosure Listing Service data:
- Palisades Central, a 420,000-square-foot office campus at 2425 Central Expressway in Dallas ($39 million loan);
- Reserve at 63 Sixty-Three, a 468-unit apartment complex at 6363 West Airport Boulevard in Houston ($37.3 million loan);
- Tuscany Park Apartments, a 392-unit apartment complex at 1200 Patricia in San Antonio ($28 million loan);
- The Co-Op at the Med Center, a 199-unit apartment complex at 7710 Main Street in Houston ($25 million loan);
- Casa Azul Townhouses, a 211-unit apartment complex at 12247 Sunset Meadow ($21.1 million loan);
- Kendall Manor Apartments, a 272-unit apartment complex at 21717 Inverness Forest Boulevard in Houston ($20.9 million loan);
- Walnut Creek Apartments, a 280-unit apartment complex at 11411 Green Plaza ($19.6 million loan);
- A retail property at 13376 North U.S. Highway 183 in Austin ($16 million);
- 400 North Ervay, a 78-unit apartment complex at 400 North Ervay Street in Dallas ($13.1 million loan);
- A retail building at 6610 Low Bid Lane, home to Soccer Central, in San Antonio ($10.5 million loan);
- Galleria Garden Hotel, a 60-key hotel at 3101 Sage Road in Houston ($5 million loan).
Read more
Texas’ CRE loans flagged for March foreclosure sales top $800M for fourth month in a row
‘It’s trouble’ Texas multifamily experts anticipate distress wave
Arbor Realty forecloses on another Houston multifamily property