August 4, 2025
Loans

Texas’ Biggest Loans Headed to Foreclosure in August


Multifamily properties will be crowding the auction block on Tuesday in Texas. 

The 28 commercial assets facing foreclosure include nine owned by Houston investor Fercan Kalkan, the founder of Kalkan Capital, Bisnow first reported. In total, Kalkan could lose 3,000 units. 

Loan documents show he bought the properties between 2019 and 2023 when interest rates were low. That’s when investors swept through Texas picking up aging apartment complexes with plans to revamp and sell them for a profit. Instead, interest rates ballooned and values sank.

The total amount of commercial loans headed to foreclosure ballooned to $670 million in August, according to Roddy’s Foreclosure Listing Service. July’s list tallied just over $400 million. 

Harris County, home to Houston, was once again the hardest hit, with 17 properties totaling $430 million in debt facing foreclosure.  

Here are the biggest loans up for auction this month. It’s possible that some of these borrowers and lenders will reach agreements to avoid auction. 

Houston

Lenders are circling Kalkan like vultures this month. 

Southstate Bank, Thistle Creek Partners and Morgan Stanley have issued foreclosure notices regarding at least $140 million worth of loans tied to nine properties.  

Here’s the list: 

  • Villa Nueva Apartments, a 542-unit complex at 5300 W. Gulf Bank Drive;
  • La Plaza Apartments, a 534-unit complex at 5909 Glenmont Drive;
  • The Pointe Apartments, a 517-unit complex at 4101 Shaver Street;
  • Veranda Village, a 330-units complex at 3635 Shaver Street;
  • La Esencia Apartments, a 296-unit complex at 300 N. Vista Drive;
  • Timbers of Cranbrook Apartments, a 258-unit complex at 14000 Ella Boulevard;
  • Park at North Vista Apartments, a 252-unit complex at 311 N. Vista Drive;
  • Mar Del Sol, a 248-unit complex at 9303 Woodfair Drive;
  • Retreat on Rosslyn Apartments, a 192-unit complex 5801 N. Houston Rosslyn Road and

Both Timbers of Cranbrook Apartments and Retreat on Rosslyn Apartments have received foreclosure notices prior to this month but haven’t been sold yet. 

Kalkan filed for bankruptcy in relation to Retreat on Rosslyn, La Esencia and Timbers of Cranbrook in May, Bisnow reported. An attorney for lender Morgan Stanley said the properties posed safety hazards. The case was dismissed.  

San Antonio

After purchasing the property in 2022, First Capital Advisors is facing foreclosure on the Joseph at Huebner, a 192-unit garden-style apartment complex at 11660 Huebner Road in northwest San Antonio. Bridge Debt Strategies Fund IV provided the $31.2 million mortgage. The debt on the property built in 1983 works out to $163,000 per unit. 

Dallas 

As of July 24, no big CRE loans from Dallas County are hitting the auction block this month. 

Fort Worth 

Red Summit Partners could lose a Tarrant County property to foreclosure on August 5. The firm appears to have defaulted on a $21.6 million mortgage from BDS Mortgage Capital for Flintridge Apartments Homes, at 2310 N. Collins in Arlington. The 186-unit apartment complex was built in 1979, and the debt amounts to $116,000 per unit. 

Repeat offenders 

Of the 17 foreclosures in Houston’s Harris County, four properties (plus two Kalkan-owned multifamily assets) are regulars. They’ve received multiple foreclosure notices but haven’t been sold yet.  

  • 2828 at Royal Oaks, at 2828 Hayes Road ($68 million)
  • Reserve at 63 Sixty-Three, at 6363 Airport Boulevard ($37.3 million)
  • Frost Bank Building, at 10333 Richmond Avenue ($34.7 million);
  • Sutter Ranch Apartments, at 10445 Greens Crossing Boulevard ($18.2 million);

One property from Denton County is headed to the block a second time:

  • Avenues at Carrollton, at 4689 Mustang Parkway ($59.8 million)

Read more

Multifamily investor Fercan Kalkan faces $125M in foreclosures






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