Another multifamily property owner in Houston is facing financial difficulties as July Residential Group, based in New York, may lose control of 1,300 units at a foreclosure auction this month. The company acquired these properties in 2021.
According to Roddy’s Foreclosure Listing Service, loans totaling $590 million are scheduled for auction across the Texas Triangle this month. This figure represents an increase from $575 million in October but remains lower than the $710 million reported in September and $670 million in August.
Harris County, which includes Houston, continues to experience the highest impact with five loans exceeding $200 million facing foreclosure proceedings.
Among the largest loans up for auction is July Residential’s alleged default on an $81.5 million mortgage from Voya secured by five properties: Casa Grande Apartments (268 units), Shadowtree Apartments (428 units), Airport Crossing Apartments (178 units), Townhome Apartments (73 units), and Plaza at Hobby Airport Apartments (328 units). These complexes were built between 1976 and 1983, with debt averaging about $63,921 per unit.
In Austin, Langdon Street Capital faces foreclosure on Langdon at Walnut Park after its loan entered special servicing in September. This development follows House Bill 21’s recent passage, which requires compliance with new rules for operators using a property tax credit loophole to maintain exemptions. Langdon Street Capital borrowed $60 million from Argentic last year for the 277-unit property at 12101 North Lamar Avenue. The debt equates to approximately $216,606 per unit.
Raven Capital Group of Lakewood, New Jersey could lose Vive Apartments in San Antonio after taking out a $23.8 million mortgage on the 280-unit complex at 9400 Fredericksburg Road in 2021. The debt amounts to roughly $85,000 per unit; the building was constructed in 1974.
In Dallas, Harwood International faces its third foreclosure this year and could lose Harwood No. 1 at this month’s auction. Gabriel Barbier-Mueller’s firm refinanced the office building at 2651 North Harwood Street with a $37.4 million mortgage from First United Bank & Trust Company in 2020—about $354 per square foot for the property built in 1984.
Tarrant County’s largest new loan headed to auction is a $6.8 million mortgage linked to Regency Apartments—a Utah-based Harris Investment Group asset purchased via loan in 2022. The Fort Worth property has 72 units and was built in 1967; its debt works out to about $93,750 per unit.
Some properties have repeatedly faced foreclosure notices without being sold yet. In Harris County alone, two properties owned by Rao Polavarapu’s Falls Apartment have received multiple notices: Falls of Braeburn (191 units) with a loan of $64.5 million and Falls of Westpark (356 units) with a loan of $29 million.
Bexar County also sees repeat listings: A retail building home to Soccer Central ($10.5 million) and another housing Dutch Bros ($7.4 million). Dallas has two such cases—a retail building on Walton Boulevard ($6.8 million) and land on Guthrie Road ($4.8 million). Travis County lists Galleria Oaks Building 2 ($16 million), while Tarrant County features Arioso Apartments & Townhomes ($56 million).
While some borrowers or lenders may still reach agreements before auctions proceed, these foreclosures reflect ongoing challenges within Texas’ commercial real estate sector.
