Arbor Realty pursues Houston apartment foreclosure

Add it to the list: Arbor Realty is foreclosing on another Houston multifamily property.

The New York-based lender claims Northbrooke SPE defaulted on a $32.5 million loan issued in February 2022 for Northbrooke Apartments, according to Harris County records. Northbrooke SPE is associated with Mudra Investments, based in Richmond and managed by Raxit and Rahul Patel. The loan amount is $135,400 per unit.

The foreclosure auction is scheduled for July 2.

Northbrooke Apartments, located at 17111 Hafer Road, has 240 units and spans 240,000 square feet. Amenities at the Class B property include a pool and fitness center. It was built in 2002 and renovated in 2017. Mudra Investments purchased it in 2022 from A. Khan Investment Properties.

It was valued at $24 million in 2024, according to appraisal district records.

The owner was hit with seven liens totaling more than $270,000, alleging nonpayment for work done on the property.

In May, the lender decided to foreclose on Park North, another 372-unit multifamily property in Houston. Arbor claimed the owner, a subsidiary of Inman Equities, defaulted on a $56.3 million mortgage.

Arbor also sought foreclosure of the 13-story office building at 41 Marietta Street in downtown Atlanta. The lender claimed that troubled Dallas-based developers Kenny Wolfe and Bluelofts had defaulted on a $20 million mortgage for the property.

Harris County’s July 2 auction could also decide the fate of 1001 West Loop South, Ali Choudhri’s Galleria office building. Choudhri has been resisting his lender’s attempts to seize the property for more than a year.

Commercial real estate investors – particularly those who purchased properties during the height of the pandemic – are struggling to pay their mortgages due to rising interest rates. Result: commercial seizures are increasing. In fact, Texas ranked third earlier this year for commercial foreclosures, according to Attom Data Solutions.