Exclusive: Bridge Takes Back Keys of 2 Texas Assets
Previous owners had value-add plans following their 2021 and 2022 acquisitions.
Bridge Investment Group has foreclosed on two Texas properties: the 248-unit Wythe Apartment Homes in Irving, Texas and The Archer, a 376-unit community in San Antonio, according to Yardi Matrix data.
Rincon Capital acquired The Archer, formerly Forest Glen, from Kobrinsky Group in 2022 with a $31.2 million loan from Bridge. At the time of the acquisition, Rincon planned capital improvements at the 1976-built community.
Notably, the property was part of an eight-asset portfolio by Kobrinsky valued at $340 million in 2022. Rincon acquired one of the properties, while Electra America purchased the remaining seven.
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The Archer features 41 buildings comprising studio, one- and two-bedroom layouts that average 780 square feet. Of the total, 125 units are income-restricted.
Located at 11600 Huebner Road, the community is in San Antonio’s northeast submarket, next to Interstate 35, which runs to Austin, Texas, potentially creating the next megaregion along its corridor.
Foreclosures on Dallas value-add projects
Ashland Greene Capital acquired Wythe Apartment Homes in 2021, financed through a $26.5 million loan from Bridge. Plans at the time included rehabilitation and amenity upgrades. The community consists of six buildings encompassing one- and two-bedroom floorplans averaging 763 square feet.
Located on more than 10 acres at 1814 Estrada Parkway, the 1985-built community is 5 miles from the Dallas Fort Worth International Airport, near the 1 million-square-foot Irving mall.
Ashland sold the property to the Pecos Housing Finance Corp., leasing the ground back and engaging in a program that provided tax benefits. Last year, the program was discontinued, setting off waves of distress for owners that utilized it, as reported by The Real Deal.
Tighter margins across many Sun Belt markets, alongside rising interest rates, led to an increase in foreclosures, especially on properties that had secured cheap capital for value-add projects earlier in the decade as they often ended up competing against new multifamily deliveries.
In June, Blackstone foreclosed on a four-community, 1,530-unit portfolio acquired by Ashland across the Metroplex in 2022. The assemblage was encumbered by a $177.5 million loan, Yardi Matrix shows.
