Nitya Capital lassoed a lifeline after lawsuits and a $356 million past-due loan rocked the Houston syndicator last year.
The firm landed a $700 million CMBS refinancing deal for 18 properties, a mix of multifamily and student housing, Law360 first reported. Citibank originated the fixed-rate loan. The properties are in Texas, Tennessee, Arizona, Nevada, North Carolina and South Carolina.
Nitya CEO Swapnil Agarwal said in a news release that the deal “validates the enduring strength of our portfolio and our disciplined investment approach.”
The quote belies years of financial turmoil for the firm.
Nitya and multifamily syndicators like Tides Equities were flying high when interest rates were low, gobbling up “value-add” apartment complexes with plans to update them and raise rents. Rising interest rates and sinking valuations upended the plan, putting many of these firms in a debt crunch.
Nitya responded by selling off parts of its portfolio, but that wasn’t enough to keep it afloat. The syndicator was unable to pay off a $356 million CMBS loan when it matured last year. The loan tied to 2,700 multifamily units was sent to special servicing.
Meanwhile, Nitya was hit with a lawsuit from the City of Mesquite over the condition of Tradewind Apartments, a 308-unit property at 2136 Tradewind Drive. The property racked up 750 complaints between 2023 and 2024, including extended air conditioning outages during the summers of 2022 and 2023, the Dallas Morning News reported.
Nitya purchased the complex in 2021 and sold it to the Texas Workforce Housing Foundation in 2023 but still managed the property.
Underwater investors have been further stymied by the Texas multifamily market, which has weathered a historic glut of supply over the last few years. The deliveries have dampened rent rates and forced operators to offer concessions at their properties.
Read more
Syndicator Nitya Capital fails to pay off $356M loan at maturity
Nitya sells multifamily holdings for $100M
City of Mesquite sues Nitya Capital affiliate over apartment conditions
