More San Antonio Apartment Complexes Headed to Foreclosure

More multifamily distress has hit San Antonio, as two North Side apartment complexes have gone into foreclosure.

Auctions have been scheduled for the Summit at Salado Creek, at 12727 Vista Del Norte, and the Canopy Apartments, at 950 East Bitters Road, after their respective owners defaulted on a combined $66.8 million in debt, the San Antonio Business Journal reported.

The 352-unit Summit at Salado Creek is owned by Colorado-based DB Capital Management, which acquired the site in 2021 and took out a $45 million variable interest rate loan from Benefit Street Partners. Jacob Sparks and Dean Smith of South Carolina-based law firm Nelson Mullins Riley & Scarborough will serve as substitute trustees for the foreclosure sale.

Canopy Multifamily Holdings LLC owns the 220-unit Canopy Apartments. While the property owner’s identity is murky, the LLC is tied to Eliza Zhang, who has LLCs registered in Wyoming and Arizona.

The Zhang affiliate took out almost $22 million in loans from four tranches when it bought the complex in 2022, the outlet said. Substitute trustees for the site are James Hollerbach, Jennifer Galloway, Stacy Kellner and Ryan Lorenz.

They are set for auction on Feb. 6.

Multifamily distress is rearing its head in the Alamo City, and GVA has been at the forefront of it. The Austin-based syndicator, led by principal Alan Stalcup, defaulted on a $56 million loan tied to the 285-unit Solara apartment complex, at 11710 Parliament Street, in November, prompting its lender, LoanCore Capital, to pursue foreclosure.

GVA also failed to make its November and December mortgage payments for the 328-unit Bella Madera apartments at 2914 Olmos Creek Drive in northwest San Antonio, which led Midland Loan Services, the loan’s servicer, to file delinquency. The loan, issued by CBRE Capital Markets in 2021 as part of a refinancing deal, is valued at $36 million

—Quinn Donoghue