Tides hit with two more DFW foreclosures

UPDATED 7/2/24 at 10:48am

Tides Equities could use a tourniquet.

The syndicator, which pools money to buy multifamily properties, is struggling to stop the bleed on the multifamily portfolio it aggressively built in DFW just a few years ago.

Two of the Los Angeles-based firm’s Dallas properties are slated to be sold at a foreclosure auction Tuesday, according to Roddy’s Foreclosure Listing Service. That makes five DFW multifamily properties owned by the firm that have faced foreclosure or returned to lenders. 

Tides became one of the biggest multifamily players in Texas, snapping up nearly 15,000 multifamily units in the Lone Star State when interest rates were low. But the firm struggled to pay off debt after rates ballooned its debt service. Earlier this year, the syndicator was shopping for cash to prop up 30 of its properties across the Sun Belt; that came after it modified an undisclosed number of troubled loans.

The properties facing foreclosure in Dallas are: Tides at Whispering Hills, a 314-unit apartment complex at 13015 Audelia Road; and Tides on Lawler East, a 204-unit apartment complex at 13030 Audelia Road. 

Tides at Whispering Hills was built in 1982 and is valued at $30.3 million, according to the Dallas Central Appraisal District. Tides on Lawler East was built in 1981, and DCAD valued it at $30 million. Tides purchased the properties in October 2022. 

They are scheduled for auction on Tuesday, July 2, at the Dallas County Courthouse. DPI Acres Capital provided the $34.6 million mortgage, which amounted to $66,800 per unit.

Tides has already faced foreclosure on three Fort Worth properties: Tides at Eastchase, at 8900 Randol Mill Road; Tides at Woodhaven, at 807 The Heights Drive; and Tides on Boca Raton South, at 5950 Boca Raton Boulevard. 

The 140-unit Tides on Boca Raton South, which DCAD valued at $16.8 million, sold at a foreclosure auction for $11.25 million. That works out to $80,400 per unit. The buyer was BR South Asset Acquisition Company, an entity tied to original lender The Amherst Group. ACM CRE Fund, another Amherst Group affiliate, provided a $13.8 million mortgage for the property in June 2022. 

Tides at Eastchase, at 8900 Randol Mill Road, is again scheduled for auction, on Tuesday. The lender for this property is TC Massey Oaks, an entity affiliated with Trez Capital, which provided a $40.5 million loan in Oct. 2021. The property was valued at $43.4 million. 

Tides co-founders Sean Kia and Ryan Andrade did not immediately respond to requests for comment. 

Tides is not the only multifamily syndicator active in Texas that has landed in trouble, after beefing up portfolios of vintage apartment complexes while debt was cheap. GVA, another syndicator, is delinquent on more than $600 million in securitized debt and has lost a number of properties in Texas to foreclosure. 

This story has been updated to reflect that BR South Asset Acquisition Company is an affiliate of The Amherst Group, not Ballast Rock Capital.

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