Should Texas Landlords Worry About ICE Subpoenas?

The Trump administration’s sweeping deportations raised an alarm for apartment associations recently, amid reports of Immigration and Customs Enforcement officers hitting landlords with subpoenas seeking information on tenants.

The National Apartment Association and the Apartment Association of Greater Dallas issued advisories on the federal overreach, informing members of the difference between the immediate urgency of a warrant, and a subpoena, which doesn’t have to be answered right away.

Even though Dallas-Fort Worth is the market where ICE is most actively cracking down, there is little evidence of multifamily landlords being hit with ICE subpoenas. But that has been reported in Georgia and Massachusetts.

Texas politicians who have spoken out against ICE raids in Texas, such as U.S. Representative Greg Casar, haven’t yet weighed in on the situation.

Here’s more Texas real estate news from this week.

Austin lost an influential real estate player with the death of brokerage executive and developer Todd Wallace. Wallace, who was president of JLL’s Central Texas region and CEO of CSW Development, died late last month after a six-year battle with cancer. He was 53.

Ashford Hospitality Trust, led by Dallas investor Monty Bennett, failed to refinance a $580 million hotel portfolio, according to the loan’s special servicer, as reported by Morningstar Credit. The firm said it received an extension until January and is waiting for interest rates to drop before refinancing. The portfolio, comprising 18 hotels across 13 states (with several in Texas), went into special servicing in June after a missed balloon payment.

There is optimism in Austin’s multifamily market, despite the area’s oversupply of new apartments. Occupancy dropped to 85 percent and average rents are down 7.5 percent year-over-year, making financing and valuations more difficult. However, reduced construction starts and strong absorption suggest the market may rebound next year.

Austin-based Capital Commercial Investments acquired Energy Crossing I in West Houston, after buying its twin, Energy Crossing II, last year. The buildings, purchased from Dallas-based Invesco Real Estate, span 560,000 square feet. Capital Commercial Investments, helmed by Doug Agarwal, has been targeting newer suburban office properties amid a market trend favoring modern buildings.

The most expensive home sold in Houston last month was a 1938 mansion at 2110 River Oaks Boulevard, which was listed for $18.9 million, or $2,004 per square foot. The 1.6-acre estate includes a 9,400-square-foot main house and two additional dwellings, and was purchased by philanthropists Martha Long and Sean Wade.

The Dallas City Council unanimously rejected a proposal to ditch the city’s “pay-to-delay” ordinance, which allows nearby property owners to postpone zoning cases for a $150 fee. The decision highlighted the divide between the council and Mayor Eric Johnson, who is pushing for streamlined development and zoning reforms.