Austin-based multifamily syndicator GVA is on the brink of losing two properties, Falls on Bull Creek and Park at Walnut Creek, to foreclosure. The firm, founded by Alan Stalcup in 2015, is facing a default on approximately $125 million in loans, adding to the $288 million loan default for Houston properties earlier this year.
GVA acquired Falls on Bull Creek in September 2021 from Nitya Capital, securing a $52 million loan from LoanCore Capital. Three months later, the firm purchased Park at Walnut Creek, located at 12113 Metric Boulevard, with a $72 million loan from LoanCore.
Holland & Knight has been appointed as the substitute trustee responsible for auctioning off the troubled properties. Notices were issued for the sale, scheduled for December 5 at the Travis County courthouse. However, the auction for the properties didn’t push through. The Real Deal, which first reported the issue, tried to clarify the situation with Holland & Knight but their attempts went unanswered.
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GVA adds to the narrative of an industry grappling with the adverse effects of economic shifts. The influx of multifamily investors in 2021 and 2022, driven by population and rent growth, relied heavily on floating-rate debt for premium lower-tier properties. However, the Federal Reserve’s interest rate hike has led to soaring debt payments, compounded by sluggish rent growth, making it challenging for these investors to bridge the financial gap.
Information for this story was found via The Real Deal, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
