Arbor Foreclosing on Inman’s Houston Apartment Complex

Arbor Realty Trust is taking back another multifamily property in Houston, this time from a Nashville-based investment firm.

Arbor, a New York-based lender, has moved to foreclose on the 372-unit Park North complex, at 16112 North Freeway, in North Houston, after an affiliate of Inman Equities defaulted on a $56.3 million loan, Bisnow reported. A foreclosure sale has been scheduled for June 4.

The Class-B complex, built in 2008, has a taxable value of $54 million, according to the Harris Central Appraisal District.

Inman has also been hit with several mechanics liens, alleging non-payment for services including plumbing, pressure washing, window and pool repair and pergola construction.

This is Arbor’s second foreclosure on a Houston multifamily complex this quarter. Arbor sold the other, in the Westchase neighborhood, to Walker & Company, providing a loan of more than $95 million to finance the purchase. However, allegations of fraud surfaced from short seller Viceroy Research regarding the sale, questioning the legitimacy of the transaction.

In response to the allegations, Arbor assured that all details regarding the sale would be disclosed accurately.

The Westchase complex was previously owned by an affiliate of Jay Gajavelli’s Applesway Investment Group, a firm that’s been on the wrong side of numerous Arbor foreclosures since last year. In April 2023, Arbor foreclosed on a four-property portfolio valued at $229 million and has since repossessed at least two more from Applesway.

Arbor also moved to foreclose on an Atlanta office property earlier this year, after Dallas-based Wolfe Investments and Bluelofts defaulted on a $20 million loan. The firm had been pursuing an office-to-residential conversion.

—Quinn Donoghue