Texas’ Biggest Loans Headed to Foreclosure in January

UPDATED 1/6/25 12pm

The new year hasn’t turned the page on Texas commercial real estate distress after loans flagged for foreclosure neared $1 billion in December.

The value of troubled loans backed by properties in the Texas Triangle headed to auction this month surpasses $826 million, according to Roddy’s Foreclosure Listing Service — a dip from December’s high of $911 million, but still far above prior months where the value hovered around $600 million.

Most of the troubled loans are tied to multifamily properties, but, this month, loans tied to hotels made up 19 percent of the value of debt flagged for foreclosure. Harris County, home to Houston, is reliably the hardest hit and was again this month, with 11 loans topping a cumulative $300 million, and, for January’s sale, Dallas County isn’t far behind. More than $280 million worth of loans tied to Dallas properties are facing foreclosure this month.

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

Multifamily distress hit Houston hard in 2025, but the largest loan headed to auction this month isn’t tied to an apartment complex. Terra Hospitality is facing foreclosure on Heritage Place Houston Brookhollow, a 197-key hotel at 2504 North Loop West in Northwest Houston. Terra reportedly defaulted on a $50.9 million loan provided by Wells Fargo tied to the property.

Austin

Brennen Degner’s DB Capital Management could lose an Austin apartment building to foreclosure this month. The Denver-based firm is accused of defaulting on the $14.3 million loan backed by Ascent at Northgate, a 112-unit apartment complex at 1830 West Rundberg Lane. ReadyCap Commercial provided the loan in 2021, deed records show. It works out to $127,678 per unit for the property built in 1972. The loan was assigned to Los Angeles-based Ascendant Capital Partners in August.

San Antonio

It’s most common to see apartment buildings from the 1970s on the auction block, but that’s not the case with Broadstone Colonnade Apartments. The 280-unit property at 4330 Spectrum One was built in 2005. David Shippy’s Quantum Leap Multifamily Group bought the property in 2022 with a $40 million loan from CBRE, which comes out to $142,857 per unit.

Quantum Leap partnered with Edcouch Community Housing Finance Corporation to get property tax breaks on the property, using a loophole known as a “traveling” housing finance corporation. Quantum Leap sold the property to Edcouch, an affordable housing organization 250 miles from San Antonio, and leased the ground. Gov. Greg Abbott signed a bill closing the loophole, which became a popular cost-cutting tool for multifamily syndicators and investors.

Dallas

When it seems like there’s nothing left for Tides Equities to lose, the embattled syndicator gets hit with another foreclosure notice. This time, the firm owned by Sean Kia and Ryan Andrade could lose Tides at Highland Meadows, a 650-unit apartment complex at 11330 Amanda Lane in Dallas. New York-based Mack Real Estate Credit Strategies provided the $76.4 million loan tied to the property built in 1984. It works out to $117,461 per unit.

Fort Worth

Bruce Hall’s AllTrades Industrial Properties could lose a 3.5-acre plot of land at 5001 Golden Triangle Boulevard in Fort Worth at this month’s auction. AllTrades Industrial Properties bought the property in 2022 with a $5.8 million loan from Susser Bank.

Repeat offenders

Of the properties scheduled for auction, 12 have been flagged for foreclosure multiple times, sometimes reflecting a loan modification or ongoing litigation. Here are the properties that have been to the block before:

Latitude 2976, a 734-unit apartment complex at 201 and 301 Wilcrest Drive in Houston ($77.2 million);
Mia Riverside, a 312-unit complex at 1601 Royal Crest Drive in Austin ($50.2 million);
Decorative Center of Houston, a 500,000-square-foot design center at 5120 Woodway Drive ($50 million).
Verandah Flats, a 120-unit apartment complex at 7130 Gaston Avenue ($26.5 million);
Tesoro at 12 Apartments, a 184-unit apartment complex 4271 Altoona Drive in Dallas ($24.2 million);
Augusta North Houston, a 212-unit apartment complex at 12655 Kuykendahl Road in Houston ($22.7 million);

Galleria Oaks Building 2, an 18,000-square-foot retail strip at 13376 North U.S. Highway 183 in Austin ($16 million);
Wyndham Garden Austin, at 3401 South Interstate 35 ($13.4 million);
The London, a 32-unit apartment complex at 5601 Gaston Avenue in Dallas ($12.9 million);
Iconic at The Station, a 75-unit apartment complex at 6810 Glendora Avenue in San Antonio ($4.9 million).
A retail building at 6610 Low Bid Lane home to Soccer Central in San Antonio ($10.5 million);
La Bella Vista Apartments, a 152-unit complex at 3600 South Shaver Street in Houston ($9.2 million); and

This story was correct to reflect that Miami-based Terra Hospitality is not the owner of Heritage Place Houston Brookhollow.