Tides Equities Faces Foreclosure on Three Fort Worth Properties

Tides Equities is bleeding through the bandaids on its troubled multifamily portfolio.

Three Fort Worth properties owned by the Los Angeles-based firm are scheduled for a May foreclosure auction, according to Roddy’s Foreclosure Listing Service.

Tides, a syndicator that pools money to buy multifamily properties, has been struggling to pay off debt tied to its properties for over a year, after rising interest rates ballooned debt service across its massive multifamily portfolio.

Earlier this year, the firm was shopping for cash to prop up 30 of its Sunbelt properties; that came after it modified an undisclosed number of troubled loans.

The properties are 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.

Tides purchased the first two properties in 2021 and the third property in 2022.

All three are scheduled for auction on May 7 at the Tarrant County Courthouse in Fort Worth.

“We have a couple assets in DFW where the math no longer makes sense to fund the deals and we are cooperating with the lender on a foreclosure process,” said Sean Kia, a co-founder of Tides. “We were able to get a loan modification from the lender, but unfortunately it wasn’t enough of a concession to change the math equation to risk new investment dollars into the asset. It is imperative that we never risk good money after bad unless we feel there is a path to recouping not only this new money, but a majority of the original investment as well.”

Ready Capital Mortgage Financing provided a $32.7 million mortgage loan for Tides at Woodhaven in June 2021.

The lender for Tides at Eastchase is TC Massey Oaks, an entity affiliated with Trez Capital, which provided a $40.5 million loan in Oct. 2021. The lender for Tides on Boca Raton South is ACM CRE Fund, an entity tied to Amherst Capital Management. The fund provided a $13.8 million mortgage for the property in June 2022.

In 2023, Tides at Eastchase was valued at $35.4 million; Tides at Woodhaven was valued at $34 million; and Tides on Boca Raton South was valued at $15 million, according to appraisal district records.

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

Tides is not the only multifamily syndicator that has landed in trouble, after racking up portfolios of value-add 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.

Isabella Farr contributed reporting.