Madera Residential has snapped up a distressed North Side apartment complex before it hit the auction block.
The Lubbock-based firm acquired the 352-unit Summit at Salado Creek from Benefit Street Partners, the lender that recently took back the property via deed-in-lieu of foreclosure, the San Antonio Business Journal reported.
The sale price was not disclosed. The property, at 12727 Vista Del Norte, was valued at over $50 million by the Bexar County Appraisal District last year.
The previous owner, Colorado-based DB Capital Management, defaulted on a $45 million variable interest rate loan. Madera will assume that loan — a move that’s become increasingly common amid high interest rates and tough lending standards, which have hindered real estate transactions across much of the nation since last year.
A foreclosure sale for Summit at Salado Creek had been scheduled for March 5.
Multifamily distress has started to emerge in San Antonio. Austin-based syndicator GVA, led by Alan Stalcup, defaulted in November 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 syndicator Elisa Zhang owns the North Side property.
—Quinn Donoghue
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