Benefit Street Partners is taking a different tack to offload a suburban Dallas apartment complex it’s planning to foreclose on.
Benefit Street’s Head of Commercial Michael Comparato took to LinkedIn to scrounge up a buyer for the Avenues at Carrollton, a 268-unit apartment complex scheduled to be sold at a foreclosure auction June 3.
Comparato said the lender has historically used a brokerage to market properties, and this effort is “half a social media experiment.”
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“We have decided to run a completely transparent sale process via LinkedIn,” he wrote.
He’s expecting to sell the property, built in 2015, for between $58 million and $63 million, according to the post. That would be between $216,000 and $235,000 per unit. While Benefit Street would prefer to sell the asset free and clear, the firm is considering providing financing, which would be on a two to three year, floating-rate basis.
Initial bids are due June 20.
Dallas-based investor Noel Management bought the property, at 4689 Mustang Parkway, in December 2021 with a $59.8 million mortgage from Benefit Street, deed records show. Noel planned to complete a $1.5 million upgrade when it purchased the property.
This isn’t the first time Benefit Street got burned after lending to an investor making moves in Dallas at the height of the pandemic buying frenzy.
The lender foreclosed on a Tides Equities asset in Dallas and took the property back with a $61 million credit bid in January after the troubled multifamily syndicator defaulted on a $66.7 million loan from Benefit Street.
It’s also going after Alan Stalcup, the man behind embattled syndicator GVA. Benefit Street is suing him for fraud, claiming his behavior — allegedly, he committed “forgery and fraud that would make even brazen criminals blush” — has triggered recourse carveouts on a $346 million loan Benefit Street provided less than three years ago.
Dallas-Fort Worth has weathered a historic deluge of apartment supply since the pandemic, with nearly 40,000 units delivered in 2024 alone. The oversupply pushed rents into freefall starting in 2022.
While new units are still on the way, permit numbers have dropped considerably, leading experts to predict rent stabilizations; the year could end with modest rent growth of about three percent, according to Partners Real Estate.
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