UPDATED 9/20/24 at 11:58 am
Tides Equities may lose one of its first Austin acquisitions.
Bridge Investment Group has noticed Tides at Mueller, at 5700 Cameron Road, for an October foreclosure sale, according to Roddy’s Foreclosure Listing Service. The property is the latest in a slew of Tides properties to face a forced sale, as the syndicator has weathered well-documented troubles keeping up with debt payments.
Tides purchased the property, then known as the MARQ at Mueller, in April 2022, just before the Federal Reserve began raising interest rates. Those hikes increased payments on floating-rate debt, like the loans Tides used to build its multi-billion-dollar multifamily portfolio.
The investor paid about $30 million for the property, roughly $165,750 per door. Around the time it bought the property, Tides took a $22.9 million loan from Bridge, about a 75 percent loan-to-value ratio.
Units at the development, which was built in 1969, are either one- or two-bedrooms, averaging 700 square feet. At the time of the acquisition, Tides said it planned to spend $4.5 million renovating the apartments. The project’s location, less than a mile from the Mueller master-planned community in northeast Austin, places it near one of the fastest-growing residential areas in the city.
Before Tides acquired the building, it had picked up two complexes in Austin and many more in Dallas-Fort Worth.
In its first Austin deal, Tides paid $43 million for a 217-unit apartment at 3622 Menchaca Road. It followed that up with a $100 million acquisition of 9811 Copper Creek Drive.
One year ago, Tides announced it had secured extensions and rate reliefs on dozens of its maturing loans. Still, it has lost a number of buildings to foreclosures since.
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Conditions have darkened in recent months for multifamily investors across Austin, particularly in the Class C value-add space. Rents have fallen 6 percent year over year in the city, and some lenders have shown a new willingness to take over struggling properties after two years of extensions.
UPDATE: The loan amount from Bridge has been changed to reflect the initial funding amount of $22.9 million. With the same acquisition price, that works out to aorund a 75 percent loan-to-value ratio, not 90.