Financially troubled StoryBuilt is offloading its $2 billion development portfolio to help remedy its messy situation.
The Austin-based firm wants to sell 28 properties, which are in various stages of development, by the end of the year, CoStar reported. The developments are located in Austin, Dallas, Denver and Seattle.
The portfolio is available as a whole or through individual deals, offered as part of a receiver sale. A&G Real Estate Partners and Onyx Asset Advisors are marketing the properties.
StoryBuilt’s struggles became publicly known when it announced major leadership changes and its plans to furlough employees in July. The company has since entered a voluntary receivership, laid off 137 employees and requested $2.5 million from its investors to avoid “financial armageddon.”
Sun Belt markets, which experienced rapid rent growth in 2021 and the first half of 2022, are currently facing oversupply, with a record number of units completed and a shortage of renters. Some markets, such as Austin, reported negative year-over-year rent growth in the third quarter.
Los-Angeles based Stapleton Group is serving as StoryBuilt’s receiver. While A&G values StoryBuilt’s portfolio at $2 billion, its exact value remains uncertain as the investment banking process is still ongoing and all claims are not yet analyzed.
The portfolio includes 17 developments in Austin, five in Seattle, three in Dallas and three in Denver. Many of these projects are part of joint ventures, with StoryBuilt having at least a 10 percent stake in them.
“Some of these sites are essentially shovel-ready, with the municipality having already reviewed and green-lighted the plans,” Onyx managing partner K. Kevin Otus told the outlet. “It is a major advantage for developers looking to seize opportunities in these high-demand markets.”
In Austin, some of the for-sale projects include the 104-unit Thornton Flats in the South Lamar neighborhood, the 42-unit Bruno that’s 35 percent complete and George — a development with 80 townhomes and 36 single-family homes that’s 40 percent complete.
—Quinn Donoghue
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