Fannie Mae has filed a lawsuit against Lurin Capital, led by Jon Venetos, alleging default on a $77.2 million loan connected to the Latitude 2976 apartment complex in Houston. The suit was filed on November 6 in the District Court for the Southern District of Texas.
The mortgage was originally provided by JLL Real Estate Capital in June 2023 and later assigned to Fannie Mae. According to the lawsuit, the fixed-rate loan matures in August 2028. Fannie Mae claims that Lurin stopped making payments as of June and failed to maintain the property.
In its filing, Fannie Mae stated that Lurin did not address repairs identified during a March inspection and allowed conditions at the property to worsen. “Lurin left the Property to further deteriorate in ways that present immediate danger to tenants and accelerate waste of Fannie Mae’s collateral,” according to court documents. Issues cited include mold, roof leaks, cracked stairs, and lack of running water for some residents.
More than $749,000 in liens have been placed against Latitude 2976, which does not include a $107,529 default judgment awarded to a law firm involved with tenant evictions at the property.
Fannie Mae is requesting that the court appoint a receiver for Latitude 2976, a 734-unit complex located at 201 and 301 Wilcrest Drive near Briar Forest in Houston.
This legal action adds to ongoing challenges faced by Jon and Ashley Venetos’ multifamily investment business. In late October, Judge Bryan Gantt issued a temporary restraining order requiring residents of Evana Grove Apartments in Plano—another Lurin-owned property—to vacate due to unsafe living conditions after city authorities reported severe utility outages and numerous code violations.
Earlier this year, Acore sued Lurin for allegedly defaulting on almost $400 million worth of loans tied to properties across Florida and Texas. Twelve properties in Florida were set for foreclosure auction as part of these proceedings. Additionally, Acore claims Venetos personally guaranteed nearly $394.4 million borrowed by his firm; six lawsuits were filed seeking judgments totaling over $80 million plus other expenses related to defaults.
Venetos also faces litigation from Select Securities Europe over alleged defaults on fifteen loans amounting to $40.5 million.
Founded by Jon and Ashley Venetos in 2016, Lurin Capital focused on acquiring Class B apartment complexes with plans for upgrades and eventual resale at higher prices. While their website lists ownership of 46 properties across five states, several assets have faced foreclosure actions amid rising interest rates that increased debt service costs as well as construction expenses.
Industry analysts expect continued financial strain among multifamily operators throughout Texas as about $19 billion in commercial mortgage-backed securities (CMBS) loans tied to apartments are set to mature within five years.
