Tides Equities has been shedding its portfolio via forced sales since April, and it’s clear the bleeding hasn’t stopped, as two more properties are on the chopping block.
Starwood Mortgage Capital is foreclosing on Tides on Trinity, at 3930 Accent Drive in Far North Dallas, and Tides on Chadwick, at 13900 Chadwick Parkway in the Fort Worth suburb Northlake, according to Roddy’s Foreclosure Listing Service. Both in Denton County, they are scheduled for auction Oct. 1.
Tides borrowed $152.8 million — $200,000 per unit — from Starwood to purchase the properties.
“We weren’t able to get enough of a concession from the lender via a loan modification to make the deal pencil,” Tides co-founder Sean Kia said.
Tides on Chadwick was built in 2009 and has 264 units. Tides on Trinity was built in 1999 and has 500 units. Both are buried in liens from contractors claiming they haven’t been paid.
The syndicator, led by Kia and Ryan Andrade, purchased the properties in January 2022, at the height of its Texas multifamily buying spree.
Between 2021 and 2023, Tides took advantage of low interest rates and snapped up nearly 15,000 multifamily units across the state with plans to renovate the units and raise rents.
A few months later, swift rate hikes blew up the cost of floating rate debt, spelling trouble for multifamily operators like Tides.
Although Tides secured extensions on dozens of loans, the investor is still losing buildings to foreclosure.
The October auction could also send an Austin property, Tides at Mueller, back to the lender.
Bridge Investment Group is foreclosing on that property, which Tides bought in April 2022 for $30 million, about $165,750 per unit. Tides borrowed $26.8 million from Bridge for the purchase.
Tides handed back the keys to the 636-unit Tides on Copper Creek in Austin earlier this month after defaulting on a $103 million loan from Rialto Capital Advisors.
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In July, Tides lost two Dallas properties to lender DPI Acres Capital and a Las Vegas apartment complex to lender Newpoint.
The investor also faced foreclosure on at least six other properties in DFW.