The spotlight on multifamily distress in Houston just got brighter, as a southwest suburban apartment complex is slated for a foreclosure auction early next month.
A lender has taken steps to foreclose on the 264-unit Retreat at Stafford apartment complex, after the owner, Austin-based GVA Real Estate Group, defaulted on a $288 million loan, Bisnow reported.
The loan, issued by LoanCore Capital in February 2022, has five borrowers, all LLCs connected to apartment complexes owned by GVA. In addition to the Stafford apartments, the mortgage is tied to two properties in the Dallas-Fort Worth area, along with two more in Tennessee and South Carolina.
GVA, which focuses on value-add multifamily investments, is swimming in debt. Earlier this month, it was reported that the firm was delinquent on two loans, totalling $55.6 million and connected to four apartment complexes.
GVA defaulted on a $56.3 million loan on a San Antonio apartment complex, recently prompting LoanCore Capital to foreclose on that property as well.
A foreclosure auction for the Retreat at Stafford is scheduled for Dec. 5. The complex, built in 2006 and located at 12700 Stafford Road, has monthly rents starting at $1,200 for a one-bedroom unit.
LoanCore issued the $288 million loan shortly before interest rates began to rise, the outlet reported, citing foreclosure documents.
This potential foreclosure adds to a growing list of distressed multifamily properties in Harris County. Applesway Investment Group, for instance, has lost five Houston-area apartment properties this year via foreclosure, including the Cabo San Lucas Apartments in the city’s Greenspoint neighborhood.
Michigan-based investor Dylan Borland and Rockstar Capital have endured similar fates with their multifamily assets.
—Quinn Donoghue
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