Arbor Foreclosure on Inman Apartment Complex in Houston

Arbor Realty Trust is taking over another multifamily property in Houston, this time from a Nashville-based investment company.

Arbor, a New York-based lender, has decided to foreclose on the 372-unit Park North complex, located at 16112 North Freeway, in North Houston, after an affiliate of Inman Equities defaulted on a $56.3 loan. million dollars, Bisnow reported. A foreclosure sale is scheduled for June 4.

The Class B complex, built in 2008, has an assessed value of $54 million, according to the Harris Central Appraisal District.

Inman was also hit with several mechanics liens, alleging nonpayment for services such as plumbing, pressure washing, window and pool repairs, and pergola construction.

This is Arbor’s second foreclosure of a Houston multifamily complex this quarter. Arbor sold the other, in the Westchase neighborhood, to Walker & Company, providing a loan of more than $95 million to finance the purchase. However, allegations of fraud have surfaced from short seller Viceroy Research regarding the sale, calling into question the legitimacy of the transaction.

In response to the allegations, Arbor assured that all details regarding the sale would be accurately disclosed.

The Westchase complex was previously owned by an affiliate of Jay Gajavelli’s Applesway Investment Group, a company that has found itself on the wrong side of many of Arbor’s foreclosures since last year. In April 2023, Arbor seized a four-property portfolio valued at $229 million and has since repossessed at least two others from Applesway.

Arbor also moved to foreclose on an Atlanta office building earlier this year, after Dallas-based Wolfe Investments and Bluelofts defaulted on a $20 million loan. The company was pursuing a conversion of offices into housing.

—Quinn Donoghue