Ari Rastegar, CEO of Rastegar Capital, is facing foreclosure on four apartment complexes in Austin. The properties are tied to a $22.7 million loan from Greystone, with the debt amounting to $139,263 per unit. The affected buildings include Hyde Park Square at 206 West 38th Street (48 units), Sunset Palms at 902 Romeria Drive (36 units), The Chateau at 1211 West 8th Street (30 units), and The Highlander at 803-809 Tirado Street (49 units).
Rastegar has indicated that he views foreclosure as a practical way to exit deals in the current market climate. At an event co-hosted by The Real Deal and his firm in Downtown Austin last month, he stated: “If you can’t sell them, fucking kick the keys back.”
He attributed the foreclosures to ongoing disputes with his lender. “The foreclosure is the result of a ‘knock-down, drag-out fight with the lender,’” Rastegar said, adding that he plans to continue litigation even if he loses ownership of the properties. He also noted that these assets represent only a small portion of his overall portfolio.
Despite these challenges, Rastegar remains focused on larger projects such as Infinity Square—a planned community between Austin and San Antonio in Kyle—which will feature both single-family homes and apartments across its 318 acres. He secured a $31.7 million construction loan for this project from Trez Capital in 2024.
Rastegar commented on broader market conditions as well: “Class C apartments in Austin have been ‘annihilated by the market.’” In recent years, Austin has experienced an unprecedented increase in multifamily housing supply; deliveries peaked in 2024 and are expected to reach nearly 26,715 new units by year-end according to Rent Cafe—representing a slight decrease from last year’s total.
This oversupply has contributed to declining rents throughout the city. JLL’s Kai Pan noted during a Texas multifamily conference that falling rents have made Austin one of the most affordable cities for renters nationwide.
Rastegar appears unfazed by these developments: “This is part of the business, dude.”
