Seventy-Two Cents of Every Distressed Texas Dollar Is an Apartment

Thirty-three commercial properties were posted for the September 1 Texas foreclosure auction, carrying $778 million of flagged loans, according to Roddy's Foreclosure Listing Service as reported by The Real Deal. Texas Triangle multifamily accounted for $562 million — 72.2 percent of the total value. The average posting was $23.6 million.

Two assets inside S2 Capital's REIT carried $169 million between them: The Richmond, against an $85 million Capital One loan, and Weston Medical Center Apartments, against an $84 million Citibank loan. Those two properties alone represent 30.1 percent of every Texas Triangle apartment dollar on this month's list. S2 told investors in May that the fund would be dissolved. Lurin Capital and GVA appear on the same list again.

September's $778 million is a step down from August's $1 billion-plus, but the composition got worse, not better.

The concentration is the story. Two properties carry nearly a third of the state's flagged apartment debt, and both sit inside a fund whose sponsor has already told investors it is winding down. Capital One and Citibank are the named lenders — this is bank paper on stabilized-looking assets underwritten against 2021 rent growth, not bridge debt.

A posting is a notice, not an outcome. Many resolve through discounted payoff, deed-in-lieu or a last-minute recapitalization. But the posting list is the earliest public read on which vintages are actually failing, and the names recur month over month. This is not a widening wave — it is a defined cohort of 2021–2022 syndication capital working through the system.

Implications. For anyone underwriting Texas multifamily acquisitions, the auction calendar is now a sourcing document. The same week these postings ran, a 1,027-unit portfolio traded in North Austin at what its buyer called a deep discount. Those facts are connected.

Flag: postings are auction notices, not completed foreclosures. A material share resolve before sale.