Freddie Mac Sends Foreclosed Austin Apartments to Auction

Freddie Mac is auctioning off 1601 Royal Crest Drive in Austin, which features multiple apartment buildings, on June 24. The starting bid for the auction is $9.5 million.

The previous owners, Mia Riverside, allegedly defaulted on a $50.2 million loan granted in March 2024, which the mortgage giant subsequently took over. Freddie Mac foreclosed on the property and won it at a January foreclosure auction with a $50 million bid, according to the Austin Business Journal. The complex on the site holds 526 apartment units, and is completely vacant, according to the publication.

The location has access to key parts of the city. It features easy access to I-35, proximity to Austin’s East Riverside Drive businesses, and is just down the street from Lady Bird Lake. The area, which totals 20.2 acres, is rife with mixed-use redevelopment opportunities, according to the outlet.

The redevelopment process for the buyer of 1601 Royal Crest Drive is straightforward. The city’s zoning has already declared it as a neighborhood mixed-use subdistrict, intended for residential use with small employers and neighborhood-oriented retail, according to the publication. Buildings can only be 50 feet high, and any floor count higher than three has to be built with a 10-foot stepback.

High-profile Austin fixtures have been heading to foreclosure auctions recently. A pair of hotels, The Line Austin at 111 East Cesar Chavez Street and Hyatt Centric at 721 Congress Avenue, hit foreclosure auctions within the past month. Both hotels went back to their lenders for a combined $222.5 million: $172 million for The Line and $50.5 million for Hyatt Centric.

Austin’s housing market is also experiencing an increase in foreclosures. In April, the city led the nation in its foreclosure rate when compared year over year. Experts have indicated that this doesn’t necessarily indicate a disruption, however, just that luxury condos and other high-priced areas are facing distress.

— Hunter Cooke