Baytown apartments part of Chetrit’s $481M portfolio distress

Add a Baytown apartment complex to the growing list of strains for one of New York’s most active developers.

The 157-unit property in the Houston suburb — the 48-year-old Forest View Apartments at 301 Tri City Beach Road — is part of a $481 million CMBS portfolio of the Chetrit Group, Bisnow reported. 

It’s facing an August 6 foreclosure auction, the latest of financial challenges for the developer on various holdings in New York and elsewhere.

The problem in Baytown tracks to a loan made by JPMorganChase, which was then folded in with a mix of multifamily properties to back the larger CMBS financing package. The deal came with a floating rate, and the loan came to 84 percent of the portfolio’s value, records indicate. 

The loan has been in special servicing since 2022 and defaulted in July of that year.

Chetrit Group began to sell off some of the properties in its portfolio six months later, striking a deal for a three-building complex in Memphis, Tennessee. The developer got a forbearance agreement in June 2023, but defaulted on that, leading the properties to go into receivership in November of that year.

Chetrit Group has since sold parts, with deals for two properties in Jacksonville, Florida.

The loan is now down to $221.1 million, according to Morningstar Credit, which indicates another $3 million or so due in interest. 

The occupancy rate for the remaining properties is 71 percent, Bisnow reported, although there is no breakdown for individual complexes.

Records indicate that a foreclosure sale is also in the works for a student housing complex in San Marcos that’s part of the same portfolio.

The portfolio has also drawn fire from the Indiana Attorney General over alleged mismanagement of some of the portfolio properties there.

Neither Chetrit Group nor JPMorganChase responded to a request for comment from the publication.

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