Texas’ Biggest Loans Headed to Foreclosure Auctions in June

Each month, Harris County, home to Houston, reliably accounts for the majority of distressed commercial real estate loans flagged for foreclosure auction.

Since the total value of loans surged past $1 billion in May, North Texas has been feeling a lot more of the pain.

Loans flagged for foreclosure in June totaled $1.3 billion, the highest it’s been since The Real Deal started keeping track in May 2025 using data from Roddy’s Foreclosure Listing Service. Of the 48 loans flagged for auctions, 11 are tied to properties in Dallas County, 9 in Collin County (home to north Dallas boomtowns like Plano, Frisco and McKinney) and 10 in Tarrant County, which includes Fort Worth.

Apartment buildings are still the most represented among the troubled loans, but there’s a more diverse mix of property types, as Austin sees downtown hotels struggle and Wash Guys Car Wash faces foreclosure on 6 locations.

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

Houston-based Bodka Street Capital could lose control of Valencia Grove Apartments, at 11710 and 11810 Algonquin Drive, at Tuesday’s auction. Dwight Capital, which is based in New York, is the holder of the $37.2 million loan tied to the property.

Bodka used the “traveling” housing finance corporation loophole to get tax breaks on the property in 2025, deed records show. The firm completed a sale-leaseback of the property with Edcouch Housing Finance Corporation, an affordable housing organization more than 300 miles from Dallas.

Austin

The Line Austin is the third Line hotel property to face foreclosure since 2025. The Line LA and The Line DC landed in foreclosure auction last year. The upscale hotel brand owned by Soho House allegedly defaulted on the $172 million loan backed by the 428-key hotel at 111 Cesar Chavez Street in Downtown Austin. The loan works out to $402,000 per room.

San Antonio

Alan Stalcup’s GVA is facing foreclosure on Algarita Lakeside Apartments, a 292-unit San Antonio apartment complex built in 1985. Fannie Mae is the holder of the $33.3 million loan tied to the property, at 8555 Laurens Lane. The loan works out to $114,000 per unit.

Dallas

S2 Capital’s Scott Everett is working to avoid the foreclosure of The Republic Apartments with a last-minute sale that he said will close within 30 days. Otherwise S2 risks losing the 1,033-unit apartment complex at 241 East I-30 in Garland. The Dallas-based multifamily syndicator allegedly defaulted on a $78.6 million loan tied to the property from Benefit Street Partners.

S2 also used the “traveling” housing finance corporation loophole to get tax breaks on the property in 2025, deed records show. The firm completed a sale-leaseback of the property with Pecos Housing Finance Corporation, more than 400 miles from Dallas.

Fort Worth

The biggest new loan flagged for foreclosure in Fort Worth is tied to The Palace Apartments at 1601 Regency Court. Swapnil Agarwal’s Nitya Capital is the owner of the property built in 1970. One William Street Capital Management, which is based in New York, provided the $28.2 million loan for the property in 2023.

Repeat offenders

Of this month’s distressed loans, 11 have been flagged for foreclosure sales multiple times, sometimes reflecting continued lender negotiations or ongoing litigation. Here are the properties that have been on the block before, according to Roddy’s Foreclosure Listing Service data:

Ashland Greene’s 1,530-unit apartment portfolio in DFW ($177 million loan);
Arioso Apartments, a 288-unit property at 3030 Claremont Drive in Grand Prairie ($56 million loan);
Palisades Central, a 420,000-square-foot office campus at 2425 Central Expressway in Richardson ($39 million loan);
Reserve at 63 Sixty-Three, a 468-unit apartment complex at 6363 West Airport Boulevard in Houston ($37.3 million loan);
Stratton Apartment Homes, a 452-unit complex at 2420 East Abram Street in Arlington ($33.5 million);

A retail property at 13376 North U.S. Highway 183 in Austin ($16 million);
A parking garage at 400 North Ervay Street in Dallas ($13.1 million loan);

Estrella at Seminary Apartments, a 98-unit complex at 1350 East Seminary Drive in Fort Worth ($6.9 million);
A plot of land at 3531 McLarry Road in TK ($5.8 million);
A storage facility at 2870 Virginia Parkway in McKinney ($5.1 million loan); and
Maison De Ville Apartments, a 121-unit complex at 707 Greens Road in Houston ($4.7 million loan).