G
VA, a prolific syndicator, faced a disastrous 2024 with delinquencies crippling hundred-million-dollar portfolios and deals teetering on foreclosure. The firm's principal, Alan Stalcup, was even sued in August for allegedly hiding assets from creditors. However, two investors have come to the rescue: WindMass Capital and S2 Capital. These firms, which navigated the market with caution, are now swooping up GVA's distressed deals at bargain prices.

    WindMass, led by Mitchell Voss, acquired GVA's Northgate Hills in Austin for $50 million. The 412-unit complex is distressed, with a tenant complaining about mold and structural issues in 2022. Voss sees the acquisition as an opportunity to "transform challenges into long-term opportunities." WindMass will renovate the property and improve operations to increase its value.

    The deal marks the beginning of a larger recapitalization effort by WindMass, which is working with GVA to finalize a $300 million transaction involving 3,500 units across 16 properties in Texas. This would be one of the largest deals in WindMass' history, and it will be done through its distressed fund.

    S2 Capital, led by Scott Everett, has also taken on a significant portion of GVA's portfolio, including 1,700 units in Nashville, Knoxville, and Dallas. S2 is recapitalizing the properties with $60 million and plans to renovate them while paying down $225 million in loans. This deal will allow S2 to finance the transaction with $195 million in debt.

    Industry insiders believe that more investors are poised to swoop up distressed deals, potentially saving struggling syndicators like GVA from foreclosure. As one private equity executive noted, "It is a good time to buy, so sponsors may end up saving each other." These deals also offer an opportunity for survivors to rebrand themselves as resilient operators.