Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAndres DanielFri, September 4, 2026 at 7:08 PM GMT+2 4 min readThis story was originally published on CRE Daily. Join 70,000+ commercial real estate professionals getting daily news, market insights, and industry analysis delivered straight to their inbox with the free CRE Daily newsletter.Key TakeawaysMultifamily loans make up $562 million, or over 70%, of the $778 million in Texas Triangle commercial properties flagged for September foreclosure auctions, per Roddy's data.Troubled syndicators including S2 Capital, Lurin Capital and GVA again dominate the list, with S2 facing defaults on properties in both Houston and Dallas.Sixteen of the properties have been flagged for foreclosure multiple times, reflecting ongoing lender negotiations and litigation rather than resolved distress.Distressed Texas multifamily loans showed no signs of easing in September, with $562 million in apartment loans flagged for foreclosure auctions, according to The Real Deal. That total accounts for more than 70% of the $778 million in commercial properties across the Texas Triangle headed to Tuesday's auction block, per data from Roddy's Foreclosure Listing Service. Once again, the list is dominated by troubled multifamily syndication firms including S2 Capital, Lurin Capital and GVA.The DetailsS2 Capital's distress has spread to Houston. The firm allegedly defaulted on an $84.3 million Citibank loan. The debt ties to the 792-unit Weston Medical Center Apartments, part of its now-defunct private REIT. The loan works out to about $106,000 per unit.In Dallas, S2 also faces foreclosure on the 531-unit Richmond Apartments. The firm defaulted on an $85.2 million Capital One loan. Capital One has separately sued founder Scott Everett over $11 million in personal guaranties.In San Antonio, River Rock Capital risks losing the 734-unit Highland Ridge Apartments. The firm allegedly defaulted on a $60.5 million Arbor Realty Trust loan. Meanwhile, DB Capital Management owns Austin's 192-unit Summit Hyde Park Apartments. The property carries a $29.2 million troubled Wells Fargo loan.On a per-unit basis, the loans range from about $82,000 for the San Antonio property to $152,000 for the Austin complex. The gap reflects differences in property age and leverage. Syndicators also layered different levels of debt onto each deal.The lender roster spans major banks and specialty finance firms. It includes Citibank, Wells Fargo, Capital One and Arbor Realty Trust. That mix shows the distress isn't concentrated among one type of capital source.Zooming OutSeptember's total marks a pullback from August. Flagged loans topped $1 billion that month. Still, the persistent volume shows that Texas multifamily distress remains far from resolved.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info