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local multifamily investor, Falls Apartment Group, is facing the loss of two properties in a Houston suburb to foreclosure. The group allegedly defaulted on $33.5 million in debt for the 468-unit Falls of Las Villas and the 514-unit Falls of Alta Vista, according to Roddy's Foreclosure Listing Service. This equates to approximately $34,100 per unit.

    The properties were purchased by Falls Apartment Group in 2017 and refinanced with a 2022 loan from Ontario Wealth Management Corporation and TIG Romspen US Master Mortgage. The Harris County Courthouse foreclosure sale is scheduled for November 5.

    Falls of Las Villas, built in 1970 and remodeled in 2017, has an appraisal value of $30.6 million. Falls of Alta Vista, also built in 1970 but remodeled in 2022, has a valuation of $33 million.

    The properties are located in Pasadena, about 15 miles southeast of downtown Houston, with units renting for $830 to $1,425 per month. Despite the recent interest rate cut providing some relief, Houston continues to struggle with high foreclosure rates. The city ranked fifth in the nation for foreclosure starts, with 1,791 cases last quarter.

    Falls Apartment Group operates 21 multifamily properties in Houston and focuses on value-add investments.