T
he Broadway, a 288-unit apartment complex in Garland, Texas, was scheduled for foreclosure on September 3 due to a default on $29.5 million in loans by Voya Investment Management. However, Western Wealth Capital, a Vancouver-based multifamily investor, managed to avoid becoming the latest casualty of the pandemic-era syndicator sweepstakes by reaching a resolution with Voya before the foreclosure notice. The property, located at 5118 Broadway Boulevard, was purchased by Western Wealth in 2021 for renovation and rent increase purposes.

    Despite the company's plans to update the units' interiors, a local home repair company filed a lien for over $2,600 in unpaid bills for paint and resurfacing at the property earlier this month. The apartment complex, known as The Broadway, was built in 1982 and is currently advertising concessions of up to $1,000 upon lease signing, with monthly rents ranging from $800 to $1,700. The occupancy rate of the property could not be determined.

    Western Wealth Capital has also been involved in other apartment property deals in the area. In January, they sold another property called District 2308 at 2308 Fair Oaks Drive in Arlington for a loss, with plans for renovation of its outdated units by the new owner, Lion Real Estate Group. Additionally, they owned Heather Ridge Apartments at 4030 Esters Road in Irving, which they bought in 2021. However, this investment was a bust, wiping out all investor cash due to increased costs and serious property devaluation, resulting in a loan-to-value ratio of 70 percent, according to Bloomberg data.

    The situation at The Broadway is part of a larger trend in the commercial real estate market, as the effects of the Federal Reserve's raising the cost of borrowing in 2022 begin to take a toll. About 40 percent of commercial real estate collateralized loan obligations, many of which originated in 2021, have been added to servicers' watchlists in April, reaching a record 8.6 percent distressed, according to CRED iQ data.

    Western Wealth Capital is just one of many major syndicators pursuing value-add apartment plays in the Dallas area. However, many upstart landlords did not account for just how steep interest rate hikes could get after the mid-pandemic multifamily boom. The Real Deal did not contact Western Wealth prior to publication of this story. After publication, an attorney for Western Wealth stated that the parties had negotiated a full resolution, terminating the scheduled foreclosure sale. This story has been updated to reflect this new development.