DJE Hires Consultant for Restructuring

Facing mounting investor unrest and the looming foreclosure of one of its marquee properties, San Antonio–based DJE Texas Management Group is bringing in outside help.

DJE has hired Fort Worth-based Max Wayman & Associates to assist with winding down its business, according to an April 22 letter sent to investors and reviewed by the San Antonio Business Journal.

Distributions to investors have been halted, and founder Devin Elder is stepping down from management while liquidating assets. The letter emphasized that while DJE is exploring asset sales to maximize recovery for stakeholders, no immediate return of capital is expected.

DJE’s troubles began to surface earlier this year. In February, Elder told investors the firm had laid off staff, paused acquisitions and shifted its focus to selling off its portfolio due to mounting economic pressures.

Investors later reported that distributions had stopped and communication from DJE had become sporadic. In his April letter, Max Wayman confirmed that distributions would remain frozen during the restructuring process and advised that investors would not be granted individual meetings with company leadership moving forward.

The move comes as DJE’s historic Travis Building redevelopment at 405 North Saint Mary’s Street heads toward foreclosure. DJE defaulted on an $18.25 million loan tied to the 10-story property, which had been converted into 63 apartments and 20,000 square feet of office and retail space.

Unless a deal with lender UC Lending is reached, the building is scheduled for auction at the Bexar County Courthouse next week on May 6.

The Travis Building project, a former office tower built in 1920, was one of San Antonio’s first to utilize Property Assessed Clean Energy financing for energy upgrades such as window replacements, LED lighting and a new roof. DJE had acquired the property from California-based Harris Bay, positioning it as a signature adaptive reuse effort during the city’s recent downtown push.

But the project’s financial troubles, combined with a broader selloff of DJE’s multifamily holdings, mark a sharp reversal for Elder.

Max Wayman & Associates specializes in consulting distressed businesses facing both civil and criminal regulatory scrutiny, according to its website. In his letter to investors, Wayman acknowledged that communication will be limited moving forward, citing the complexity of the situation.

— Judah Duke