T
ides Equities is facing a potential foreclosure on one of its earliest Austin acquisitions, as Bridge Investment Group has listed Tides at Mueller at 5700 Cameron Road for an October sale. This property is part of a series of Tides properties facing forced sales due to financial difficulties in keeping up with debt payments. The syndicator purchased the property, previously known as MARQ at Mueller, in April 2022, just before the Federal Reserve began raising interest rates. These rate hikes increased payments on floating-rate debt, which is similar to the loans used by Tides to build its multi-billion-dollar multifamily portfolio. The investor paid approximately $30 million for the property, which translates to $165,750 per door. At the time of the acquisition, Tides took a $26.8 million loan from Bridge, representing a nearly 90 percent loan-to-value ratio. The units in the development, built in 1969, are either one- or two-bedrooms, with an average size of 700 square feet. At the time of purchase, Tides planned to spend $4.5 million on renovations for the apartments. The property's location, less than a mile from the Mueller master-planned community in northeast Austin, places it in a rapidly growing residential area. Prior to this acquisition, Tides had already acquired two complexes in Austin and many more in Dallas-Fort Worth.

    In its first Austin deal, Tides paid $43 million for a 217-unit apartment at 3622 Menchaca Road. This was followed by a $100 million acquisition of 9811 Copper Creek Drive. One year ago, Tides announced that it had secured extensions and rate reliefs on dozens of its maturing loans. However, despite these efforts, it has lost several buildings to foreclosures since then.