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- Trouble in Multifamily CRE: Two Big Messes, and Investors Are on the Hook, Not Banks
Trouble in Multifamily CRE: Two Big Messes, and Investors Are on the Hook, Not Banks
by Wolf Richter Wolf Street
A REIT specializing in CRE loans foreclosed on 3,200 apartments in Houston. CMBS investors hit by default of 62 multifamily buildings in San Francisco.
Four Class B and Class C apartment complexes, built before 1981, with 3,200 apartments in the Houston area – the Reserve at Westwood, Heights at Post Oak, Redford Apartments, and Timber Ridge Apartments – were sold at a foreclosure auction on April 4 in Harris County by the lender, Arbor Realty Trust, a publicly traded real estate investment trust that specializes in commercial real estate lending. Arbor Realty’s shares [ABR] have fallen by about half since November 2021.