Canada’s largest private landlord, Starlight Investments, is facing foreclosure on the Emerson at Buda apartment complex near Austin. The property, located at 950 FM 2001 in Buda, was built in 2021 and purchased by the Toronto-based firm in April 2022. Starlight defaulted on a $47.7 million loan from Natixis, prompting a foreclosure notice and an auction scheduled for October 17 at 10:30 a.m., to be handled by Mannion Auctions.
The Emerson at Buda features 304 units and offers amenities such as a gym, pool, cabanas, and co-working spaces. The mortgage translates to approximately $157,000 per unit. The complex is situated about 16 miles south of downtown Austin in Buda, which has seen its population grow more than eight percent since 2020.
Over the past two years, Austin has experienced a significant increase in apartment supply. This influx has led to declining rental rates and lower occupancy levels across the region. According to JLL’s Kai Pan at a recent Texas multifamily conference hosted by Connect CRE, “Rents have fallen so much in Austin that the city leads the country in rental affordability.” He added that decreased rents combined with high salaries mean “Austin renters, on average, spend 16.8 percent of their income on rent.”
Archived data from Emerson at Buda’s website shows notable drops in rental prices over three years. One-bedroom apartments that started at $1,238 per month are now offered for $1,019—a decrease of almost 18 percent—while two-bedroom units have dropped from $1,598 to $1,278 per month (a reduction of about 20 percent). Despite these reductions, concessions are being offered: new renters can receive a $1,000 credit for leasing a one-bedroom or one month free when renting a two-bedroom apartment.
Industry experts caution that financial distress within Texas’ multifamily sector may intensify. James Shevlin of CWCapital noted that over the next five years nearly $19 billion in commercial mortgage-backed securities loans tied to Texas multifamily properties will mature.
