- Texas CRE loans for auction exceed $800M for the third straight month.
- Starwood foreclosed on The National, Dallas’ major mixed-use redevelopment.
- Top auctions include high-profile multifamily and industrial assets across the Texas Triangle.
- Repeat foreclosure notices highlight ongoing distress in several major Texas markets.
Foreclosures Hit Texas CRE
According to The Real Deal, Texas loans secured by troubled commercial properties are once again headed to auction, marking the third consecutive month with more than $800M in distressed debt across the Texas Triangle. The largest foreclosure this cycle involves The National, Dallas’ landmark mixed-use redevelopment by Todd Interests, which defaulted on a $245M loan held by Starwood.
This trend underscores increasing financial pressures across Texas’ downtowns and suburban nodes. Rising numbers of challenged Texas loans point to broader economic concerns for owners and stakeholders throughout the state.
Major Properties Facing Auction
In Dallas, The National leads February’s foreclosure list. The $460M mixed-use redevelopment converted the First National Bank Tower into residences, retail, and a hotel. Backed by public and historic incentives, the project now faces auction. Todd Interests still owes about $230M on the loan. Foreclosure follows mounting downtown losses, including AT&T’s HQ exit and Todd’s stake sale in East Quarter.
Houston’s largest distressed property is a 150-acre industrial site in La Porte. A $30M note tied to the site was recently refinanced to $38.8M. In Austin, the Rosemark Woodland condos face foreclosure less than a year after opening. The project defaulted on a $14M loan.
In San Antonio, the 304-unit Acadia on the Lake Apartments is also headed to auction. A $31.3M CBRE loan backs the property. Analysts link the distress to the recent closure of a major property tax break for apartment owners. Elsewhere, foreclosure activity has also intensified in Washington, D.C., where several trophy office assets were recently taken back through auction, pointing to broader national distress.
Fort Worth’s top listing is The Sherry, a 252-unit apartment complex in Arlington. The property backs a $24.4M mortgage from ReadyCap. These foreclosures show the diverse asset types and regions impacted across the state.
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Repeat Crisis Assets
Nine scheduled Texas loans have been repeatedly flagged for foreclosure, driven by ongoing distress or litigation. These span multifamily, office, and retail across Houston, San Antonio, Austin, and other markets—including Latitude 2976 ($77.2M), Veranda Village ($47.2M), and several others with multimillion-dollar balances.
Why It Matters
The concentration of troubled Texas loans reflects continued challenges for the state’s CRE sector, especially as owners struggle with higher costs, shifting demand, and changing regulations. Observers expect more auction activity unless borrowers and lenders find last-minute solutions to stave off foreclosure.
