Lender Moves To Foreclose On Stafford Apartment Complex After $288M Loan Default
Multifamily distress continues to make itself evident in Houston, with a Stafford apartment complex set to be sold at a Harris County foreclosure auction after the owner defaulted on a $288M loan, public records show.
The loan has five borrowers, all limited liability companies tied to the Retreat at Stafford as well as to apartment complexes in Richardson and Lewisville, Texas; Hendersonville, Tennessee; and Greenville, South Carolina. All of the complexes are owned by GVA Real Estate Group, an Austin-based value-add multifamily operator with over 30,000 units, according to its website.
GVA did not respond to a request for comment.
LoanCore Capital Credit REIT LLC issued the $288M on Feb. 15, 2022, shortly before federal interest rates began rising, according to the foreclosure document. A special servicer is involved, per the document. LoanCore Capital did not respond to a request for comment.
The Retreat at Stafford is a 264-unit garden-style complex built in 2006 and located at 12752 Stafford Road in Stafford, according to Apartments.com. Monthly rents for one-bedroom apartments start at $1,199, according to the complex’s website, which says GVA “specializes in conventional as well as affordable opportunities, paying particular attention to expanding sub-markets.”
GVA’s investment strategy entailed looking for properties that could yield above-market cash flow once stabilized.
The complex is set to appear at the foreclosure auction on Dec. 5, according to the foreclosure filing.
The Retreat at Stafford could add to a long and growing list of multifamily properties foreclosed upon in Harris County this year. Rockstar Capital lost one in September and Applesway Investment Group lost five complexes over a four-month span this spring and summer.
A Greenspoint-area community tied to Dylan Borland, a Michigan-based investor, was lost through foreclosure in October.
A motel-turned-apartment complex is also set to go on the block at the December auction after apparently not appearing in November, according to public records.
