StoryBuilt, the Austin-based infill housing developer also known as PSW Real Estate, continues to face significant challenges more than two years after entering voluntary receivership. According to a recent update from Stapleton Group, the Los Angeles firm managing the company’s wind-down, over half of StoryBuilt’s assets remain unsold and prospects for investors recovering their funds are unclear.
The company entered receivership in August 2023 following lawsuits from investors and condo owners, and after laying off more than 100 employees. At that time, the receiver placed StoryBuilt’s entire development pipeline on the market. However, progress has been limited.
Stapleton Group reported that the previously publicized $2 billion valuation of StoryBuilt was inaccurate. The receiver stated that “overly optimistic” financial data provided by stakeholders exaggerated the value of projects within the company’s portfolio. As a result, expectations for a straightforward resolution have diminished.
The update noted: “overly optimistic” financial data from stakeholders overstated the value of projects across the company’s holdings.
Some assets have been sold through foreclosure or completed and sold after resuming construction. Still, StoryBuilt’s stakes in 14 joint ventures across Texas, Colorado, and Washington state have proven difficult to monetize due to joint venture agreements granting partners broad operational control—such as removing StoryBuilt as manager—which discouraged potential buyers. The receiver described these arrangements as “unfavorable” because they left StoryBuilt with minority positions unattractive to buyers.
As of August 31, StoryBuilt retained interests in only two active developments: North Bluff in South Austin—where all condos were sold by late August—and Jolene in West Dallas, a mixed-use project carrying over $46 million in secured debt with no further updates provided on its status.
Receivership activities have generated approximately $18.7 million from sales so far and repaid nearly $14 million in secured debt linked to completed projects. In total, about $21.1 million has been returned to creditors since late 2023; however, it remains unclear how much is still owed overall.
With long development timelines ahead for many joint ventures, Stapleton Group has moved into a second phase of receivership that could last several years. The final outcome depends on whether these stakes can be sold or otherwise resolved as projects are completed.
