Nitya Capital hit a bump on the winding road to stabilize its value-add multifamily portfolio.
A $66 million CMBS loan tied to two Nitya-owned properties, The Muse in Dallas and Eden Pointe in Houston, was transferred after a receiver was appointed, Morningstar Credit reported. Morningstar data also shows that the loan is delinquent, since Nitya hasn’t completed its October payment.
The properties were collectively appraised at $127.4 million when the loan originated in October 2023. It matures in 2033. Servicer commentary provided by Morningstar first noted that The Muse “has some life safety issues” in January 2025. The note has appeared in each subsequent report.
Nitya Capital founder Swapnil Agarwal didn’t respond to a request for comment, but he did tell Multifamily Dive, which first reported the transfer, that The Muse has “some code violations” and that the situation would be “fully taken care of very shortly.”
That 804-unit property at 3035 West Pentagon Parkway near Red Bird, was built in 1969 and last renovated in 2018. The 197-unit Eden Pointe, at 1307 Wilcrest Drive, was built in 1972 and renovated in 2020.
Nitya purchased The Muse in 2020 from Scott Everett’s S2 Capital. It picked up Eden Pointe from Houston-based GWR Equities in 2017.
In 2023, Nitya partnered with Austin-based Texas Essential Housing Public Facility Corporation on a sale-leaseback of both properties, which provided property tax exemptions in exchange for keeping some units affordable.
Notably, the sale-leasebacks are dated October 2023, after House Bill 2071 went into effect. The legislation tried to reform the public facility corporation program to ban the entities from doing deals outside of their jurisdictions. But, the Texas Essential Housing Public Facility Corporation, the target of the bill, continued to strike the deals based on a creative interpretation of the law, Houston Chronicle found.
This loan update represents yet another twist in Nitya Capital’s winding post-pandemic recovery.
Debt was piling up for Swapnil Agarwal’s Houston-based syndication firm, with Nitya unable to pay off a $356 million CMBS loan when it matured last year. But its luck changed when the firm landed a $700 million securitized refinancing deal in June.
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