Lurin Capital, a Dallas-based real estate investment firm, is facing a $40 million loan default lawsuit after previously losing 12 Florida properties to foreclosure. The suit was filed by Select Securities Europe, a lender based in Luxembourg, in the U.S. District Court for the Northern District of Texas.
According to court documents, Lurin allegedly defaulted on 15 loans totaling $40.5 million when it stopped making interest payments in July 2023. The loans matured in December 2024 and were personally guaranteed by Lurin co-founders Jon and Ashley Venetos. Select Securities Europe is seeking repayment of the full principal, accrued interest, late fees, and attorneys’ fees. As of last month, Lurin reportedly owed $10.7 million in interest.
“This month, more than $700 million in CRE loans in Texas’ largest counties were flagged for foreclosure. That’s up from about $400 million in July. Most of these loans are tied to multifamily properties purchased or financed in 2021 and 2022 when values were high and debt was cheap.”
The current legal challenge follows other financial difficulties for Lurin Capital. The company also defaulted on $383.6 million in loans from Acore Capital Mortgage, resulting in an auction of the associated dozen properties. In addition, another property owned by Lurin—the Estates at Avenstar complex with 592 units located in Houston—was put up for auction earlier this month after a default on a $52.5 million mortgage from Nexstar.
Lurin Capital specializes in value-add apartment complexes by acquiring older buildings with plans to renovate them, increase rents, and eventually sell for profit. However, rising interest rates have made floating-rate debt and renovations significantly more expensive during this cycle.
Multifamily distress is increasing across Texas as operators like Lurin struggle to maintain ownership until potential future reductions in interest rates can provide relief.
“Experts warn it’s just the beginning. About $19 billion in CMBS loans tied to Texas multifamily is set to mature in the next five years.”
