- Texas CRE loans in March foreclosure sales totaled $818M, marking four consecutive months above $800M.
- Nearly 70% of the foreclosed properties are apartment complexes, showing concentrated multifamily distress.
- Houston saw the most properties flagged in the Texas Triangle, with Dallas and other regions also reporting high volumes.
- Several properties up for auction have faced repeated foreclosure notices, often tied to loan modifications or litigation.
Foreclosure Sales Remain Elevated
Texas commercial real estate loans scheduled for March foreclosure sales totaled $818M, according to The Real Deal. The figure marks the fourth consecutive month above $800M. Data from Roddy’s Foreclosure Listing Service shows apartment complexes make up nearly 70% of the properties. The concentration highlights rising stress across the Texas multifamily market.
The surge spans the entire Texas Triangle. Harris County, home to Houston, leads with 16 properties scheduled for auction. Dallas County follows with eight properties. In total, 42 assets across the state are slated for foreclosure sales this month.
Key Multifamily and Office Foreclosures
- Houston: Whitney at The Heights (186 units), a $34M loan with Acre Credit Fund.
- Austin: Mueller Square Apartments (58 units), a $10.2M loan with Thrive Lending Fund.
- San Antonio: The Mission at Medical Apartments (453 units), a $34.7M CMBS loan.
- Dallas: Palisades Central I & II, office buildings, a $39M loan with NexBank.
- Fort Worth: Stratton Apartments (444 units), a $33.5M Fannie Mae loan.
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Repeat Distress Signals
Nine properties scheduled for March auctions have faced foreclosure before. The repeat filings reflect ongoing disputes, loan workouts, and modification attempts. The pattern mirrors a broader national rise in distressed commercial assets, as foreclosure activity has recently surged across multiple property sectors.
Examples include the Latitude 2976 complex in Houston, tied to a $77.2M loan. The Le Meridien hotel in Dallas carries a $42.8M loan. Several apartment communities in San Antonio and Houston also appear again on auction lists.
What’s Next
Industry experts expect continued distress in the Texas multifamily sector as elevated foreclosures and repeat loan troubles persist. Some borrowers may still negotiate with lenders to avoid auction, but multifamily remains a key risk for Texas CRE investors in the months ahead.
