More multifamily distress hit San Antonio, as one North Side apartment landlord just handed the keys back to its lender.
Colorado-based DB Capital Management surrendered the 352-unit Summit at Salado Creek via deed-in-lieu of foreclosure, after defaulting on a roughly $45 million variable interest rate loan from Benefit Street Partners, the San Antonio Business Journal reported.
Benefit Street assumed control of the complex, at 12727 Vista Del Norte, through a special warranty deed, according to Bexar County records. Benefit Street issued the loan in 2021, when DB Capital purchased the site through an affiliated LLC.
The property was valued at $50 million by the Bexar Appraisal District last yer, the outlet reported. Property assessments for 2024 haven’t been released.
A foreclosure sale for Summit at Salado Creek is scheduled for March 5. Jacob Sparks and Dean Smith of South Carolina-based law firm Nelson Mullins Riley & Scarborough will serve as substitute trustees for the sale.
DB Capital, led by CEO Brennen Degner, owns two other apartment complexes in San Antonio — Summit at TPC and Summit at Henderson Pass. The firm’s portfolio also includes assets in Austin, Denver, Salt Lake City and Las Vegas, according to its website.
Alan Stalcup’s GVA is facing foreclosure at several San Antonio properties, among others across the Sun Belt.
In November, the Austin-based syndicator had defaulted on a $56 million loan tied to the 285-unit Solara apartment complex on the city’s North Side, prompting the lender, LoanCore Capital, to pursue foreclosure.
GVA also failed to make its November and December mortgage payments for the 328-unit Bella Madera apartments at 2914 Olmos Creek Drive in northwest San Antonio.
In a separate instance of multifamily distress, lenders recently foreclosed on the 220-unit Canopy Apartments. An LLC with ties to a woman named Eliza Zhang owns the North Side property.
—Quinn Donoghue
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