Thakkar Sued For Default, Nitya Scores $700 Million Lifeline

Two distress stories are playing out at opposite ends of the spectrum.

Saumil Thakkar, a member of a well-known Dallas investor family, is facing a lawsuit from Chicago-based Monroe Capital over a $35.7 million loan tied to a mixed-use development in the Collin County Dallas suburb Allen.

Monroe alleges Thakkar defaulted on the loan, which has an outstanding balance of $24.1 million, despite a forbearance agreement. The loan is linked to the Avenue in Allen, an 80-acre development slated to include office, retail, single-family homes, apartments and hotels. In 2020, Thakkar and his family faced fraud allegations, which were settled last year, and they are involved in various real estate and entertainment ventures.

On the other end, Houston-based syndicator Nitya Capital got a lifeline.

The firm secured a $700 million CMBS refinancing deal for 18 properties across six states, offering relief after it defaulted on a $356 million loan last year. The firm, like many other multifamily syndicators, struggled as rising interest rates and a supply glut upended value-add investment strategies. The firm had to sell assets and has faced lawsuits over property conditions.

Nitya’s CEO Swapnil Agarwal framed the refinancing as a sign of the firm’s resilience.

Here’s what else happened in Texas real estate this week:

Hines sold the 274-unit Aris Market Square luxury apartment tower in downtown Houston to Mexico City-based Hasta Capital but stayed on as property manager. Hasta borrowed $58.3 million for the purchase. The 32-story building has upscale amenities and a ground-floor food hall.

Gina Ortiz Jones was elected mayor of San Antonio, becoming the city’s first openly gay mayor and benefiting from a new four-year term structure. A former Air Force officer and Biden administration official, she defeated real estate-backed Rolando Pablos with 54.3 percent of the vote in a runoff election and plans to prioritize affordable housing. Ortiz Jones has taken a cautious stance on the proposed $4 billion “Project Marvel” Spurs arena plan, emphasizing the need for clear public benefit before committing city funds.

The long-vacant Outlets at Hillsboro is being demolished to make way for a $75 million redevelopment by Dallas-based Glaser Retail Partners. The 43-acre project will include 200,000 square feet of retail and restaurant space, 230,000 square feet of industrial facilities, and could create up to 400 jobs as it revitalizes the once-thriving site.

Plano-based Main Square Development is planning a 1,500-acre master-planned community in Terrell, a Kaufman County suburb 35 miles east of Dallas. Called Terra Nova, it’s slated for 3,800 housing units, 112 acres of commercial space, and a 50-acre downtown-style district. The firm plans to invest $110 million in infrastructure like roads, trails and parks. It is the firm’s first project and comes as the county experiences rapid growth. Construction is expected to start by the end of the year.

Digital Realty drastically scaled back its investment in downtown Dallas, cutting its planned $104 million data center redevelopment to a $13 million renovation at 2323 Bryan Street. Citing unforeseen technical challenges, the company requested to revise its development agreement with the city, which may eliminate tax incentives and adjust job creation requirements.

—Rachel Stone