A court-appointed receiver is working to rescue StoryBuilt.
The Austin-based developer, which specializes in urban infill single-family homes, laid off over 130 employees and went into receivership. Co-founder Anthony Siela sent a letter to investors in late July, informing them of the company’s financial struggles and leadership changes.
Now, the Stapleton Group has been appointed to clean up StoryBuilt’s financial mess, and it’s asking $2.5 million from the firm’s investors, the Austin American-Statesman reported.
Mike Bergthold, managing director of Los Angeles-based Stapleton, made the request during a conference call last week. A court-appointed receiver is an independent trustee that’s brought in to manage a troubled company’s assets and return it to profitability.
If investors don’t pitch in $2.5 million, StoryBuilt would face “financial Armageddon,” the outlet reported, citing a readout of the conference call. A portion of the funds would be used to hire an investment banker who could market the sale of the company as a whole or as individual properties. The latter option would best serve investors, Bergthold said, as StoryBuilt isn’t very liquid at the moment.
However, private lenders and several banks, such as First United Bank, Moody Bank and Susser Bank, are urging a Travis County judge to halt the receivership so they can proceed with foreclosures and other collection efforts. StoryBuilt has been hit with three lawsuits this year in which the plaintiffs are seeking $1.5 million in damages.
A court hearing regarding those objections is scheduled for Sept. 12.
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StoryBuilt has been a key player in the redevelopment of South First Street in South Austin, where there’s been a surge of high-end housing, restaurants and commercial buildings in recent years.
It’s unclear what will happen with the company’s in-progress developments, which includes an $80 million condo and office project at 755 Springdale Road in East Austin. No large-scale construction has begun there, the outlet said.
StoryBuilt has started construction on housing developments at 5107 Menchaca Road and 900 South First, but plenty of work remains to be done. Homer Agency, a new company founded by former StoryBuilt executives, is overseeing the 900 South First project and could collaborate with the firm on other projects.
—Quinn Donoghue