DALLAS — Read this story and more North Texas business news from our partners at the Dallas Business Journal
Three North Texas multifamily properties owned by California-based Tides Equities LLC are facing potential foreclosure as the Los Angeles-based real estate investment firm deals with fallout from an aggressive buying spree earlier this decade.
The apartment complexes in Fort Worth, Arlington and Dallas have been listed for foreclosure auctions in early August, according to records from Tarrant County and Collin County. They are the 176-unit Tides on Avril in west Fort Worth, the 296-unit Tides on North Collins in Arlington and the 322-unit Tides on McCallum South in Far North Dallas.
Tides Equities purchased the communities in 2021 and 2022. The Los Angeles-based real estate investment firm has in recent years snapped up and renovated dozens of older multifamily properties, often called class B properties, across the Southwest. In 2022, the firm owned about 15,207 multifamily units in Texas and 31,000 units total.
The firm spent significant sums in Arizona and Nevada, too. Phoenix Business Journal reported in 2022 that Tides Equity spent $255 million on a 1,012-unit apartment community in partnership with another company.
Now, Tides is facing pressure from several lenders. Tides Equities co-founders Sean Kia and Ryan Andrade did not respond to a request for comment. Just because foreclosure auctions have been scheduled doesn't mean the properties will be sold — the auctions could be delayed or the borrower and lender could work out a deal in the interim. But the situation speaks to the difficulties faced by many landlords amid a challenging real estate market, especially in multifamily.
Tides took out a $20.43 million loan in 2022 from BSPRT CRE Finance LLC, a subsidiary of Benefit Street Partners, to finance its purchase of Tides on Avril, located at 8841 Avril Court North, according to county foreclosure notice documents. The building is up for foreclosure auction Aug. 6 at the Tarrant County courthouse. The property has been appraised for tax purposes at $16.8 million by the Tarrant Appraisal District. Such values are typically lower than market value.
Tides on North Collins at 903 Ashford Lane is also up for foreclosure at the Aug. 6 Tarrant County auction. Tides took out a $35.9 million loan tied to FS Credit Real Estate Income Trust Inc. in 2021, according to the foreclosure notice. The property's appraised value is $33.6 million, according to the Tarrant Appraisal District.
Tides on McCallum South, at 7720 McCallum Blvd., faces foreclosure on a 2021 loan of $33.65 million from Acres Commercial Realty, according to Collin County documents. The property sits on the line between Dallas and Collin counties. Dallas Central Appraisal District values its portion of the property at nearly $6.8 million and Collin Central Appraisal District values its portion at $23.5 million. A foreclosure auction is scheduled for Aug. 6 but it's unclear exactly where it might take place. The foreclosure notice includes a handwritten note to "post in Collin [and] Dallas" and "sell in Dallas."
Several of Tides' other properties in DFW have faced foreclosure threats and a couple have already been sold.
BR South Asset Acquisition Co. acquired the 140-unit Tides at Boca Raton South in Fort Worth at a May 7 auction with a $11.24 million credit bid, according to county deed records. That company is tied to The Amherst Group LLC. It's important to note that a credit bid at a foreclosure auction doesn't necessarily reflect the total value of a building — those kinds of bids are based on what's owed on the loan.
Tides has also lost two Dallas properties to a lender, DPI Acres Capital, The Real Deal reported.
Tides at Eastchase at 8900 Randol Mill Road has been posted for foreclosure six times since September but has not been sold, Tarrant County records show. The most recent foreclosure was scheduled for July 2 for a $40.5 million loan from Trez Capital Manhattan Bridge LP.
Ready Capital Mortgage Financing has threatened foreclosure on Tides at Woodhaven, a 332-unit building at 807 The Heights Dr. in Fort Worth, for a $32.68 million mortgage originated in 2021.
And Tides faces financial challenges at other properties. A recent appraisal of Tides at Meadowbrook, located at 525 King George Dr. in Fort Worth, valued the property at $13.1 million — a 33% decline from the $19.7 million appraised value previously recorded in late 2021, according to a July 25 loan servicer report. The building's occupancy was 73% as of March, the latest reporting period recorded in loan servicer notes.
