StoryBuilt, the infill housing developer once said to have a $2 billion development pipeline, remains mired in receivership more than two years after entering voluntary court oversight. According to an update from Stapleton Group, the Los Angeles-based firm managing the wind-down, more than half of StoryBuilt’s assets remain unsold and investors are facing uncertainty about recovering their investments.
The Austin Business Journal reported that the receiver determined the $2 billion valuation was never accurate and that “overly optimistic” financial projections from stakeholders had overstated the true value of StoryBuilt’s projects. The update also stated that a full financial recovery for either StoryBuilt or its investors is unlikely.
StoryBuilt, legally known as PSW Real Estate, entered receivership in August 2023 following lawsuits from investors and condo owners and after laying off over 100 employees. At that time, all of its development projects were put up for sale. Since then, some assets have been sold through foreclosure or completed and sold after construction was finished. However, interests in 14 joint ventures across Texas, Colorado, and Washington state have been difficult to monetize due to agreements that gave partners extensive control over operations and allowed them to remove StoryBuilt as manager. These arrangements left StoryBuilt with minority stakes unattractive to potential buyers.
As of August 31, the company held stakes in only two active developments: North Bluff in South Austin—where construction restarted and all condos were sold by the end of August—and Jolene in West Dallas, a mixed-use project still carrying more than $46 million in secured debt. No progress update was provided on Jolene.
Since late 2023, approximately $18.7 million has been generated from sales during receivership, which paid off nearly $14 million in secured debt tied to completed projects. About $21.1 million has been returned to creditors so far; however, the total amount owed remains unclear.
Stapleton Group has now moved into a second phase of receivership expected to last several years as it attempts to resolve StoryBuilt’s remaining interests in long-term joint ventures.
“Overly optimistic” financial data from stakeholders overstated the value of projects across the company’s holdings,” according to the receiver’s recent report.
The outcome for investors depends on whether these remaining stakes can be sold or bought out or if they must be held until eventual project completion.
