1,326 Meyerland Apartments Are Back With the Lender

Around 6:24 p.m. on Oct. 20, Houston firefighters were called to a two-alarm fire in a vacant two-story building at 5465 Braesvalley Drive, part of the Meyerland complex now called The Life at Jackson Square. The building had no electricity or gas service, 118 personnel responded and one firefighter was hurt, FOX 26 Houston reported.

By then the buildings had a new owner. A petition Harris County filed in the City of Houston's nuisance case says ownership changed after a foreclosure in mid-October, and it names FS CREIT Nob Hill LLC as the post-foreclosure owner.

The debt behind the complex was a $93.9 million loan on 1,326 units at 5410 Braeswood Boulevard, which The Real Deal worked out to $70,814 per unit. It called that the biggest new multifamily loan flagged for foreclosure in its October Texas count.

How a 2025 loan ended up owning the buildings

The Real Deal's Oct. 6 Texas distress report listed a $94 million foreclosure against Olive Tree Holdings, a New York-based operator, on a loan Future Standard and Rialto Capital Management made in 2025. Its Oct. 19 follow-up said FS Credit provided the financing.

The county petition uses a third name, FS CREIT Nob Hill LLC. None of the reports we read explain how the three names relate.

The city first sued in April 2025, Community Impact reported, the same year the loan was made. The complex covers 39 acres with more than 150 buildings and more than 1,300 units, per Community Impact's count.

The county's list of problems runs from inoperable vehicle gates and unlocked pedestrian gates to sewage, trash, exposed wiring and at least three badly fire-damaged buildings left unsecured.

It cites 16 incidents involving firearms, aggravated assault, robbery, arson and narcotics from May 2023 through September 2026, and a city filing references more than 800 police calls. Those are allegations; the complex's attorneys denied the city's claims when it first sued, ABC13 reported on June 16.

The land belongs to a housing corporation from Pecos

The lender now holds the buildings. The petition names Pecos Housing Finance Corporation as the landowner, and FOX 26 reported that Pecos is believed to still own the land under them.

Pecos is a West Texas town of fewer than 13,000 people. Its housing finance corporation was revived in October 2024 and began approving deals far from home, CBS Texas reported in April 2025, removing more than $500 million of North Texas property from the tax rolls.

These corporations can own property free of tax, and developers pay them a share of the savings. A Cameron County HFC director told commissioners in 2023 that his typically collects 15%, while Pecos has not disclosed its cut.

Hays County later won temporary restraining orders against the Pecos and Pleasanton HFCs over about $230 million of taxable value in San Marcos and Kyle, KXAN reported.

House Bill 21 took effect May 28, 2025. An HFC now needs the local government's approval to operate outside its jurisdiction, must pass at least 50% of the exemption's value to residents as rent cuts and must accept Housing Choice Vouchers, according to a Butler Snow summary.

The reports we read do not say when Pecos took title to the Meyerland land or whether the complex pays property tax today. Any buyer will want that answered first, since the ground position and any exemption decide what NOI a new owner can count on.

What it means for owners and investors

At $70,814 of debt a unit, Meyerland sits well under the $97,222 a unit that Accel Equity Group paid Sorrento Property Group for the 324-unit Holly View Apartments in northwest Houston, Connect CRE reported on Oct. 28.

It is also under the $100K per door at which, according to speakers at Bisnow's Houston multifamily conference, reported Oct. 19, Southwest Houston deals were financed.

"You have '60s and '70s stock that is going to start getting boarded up," Urban Genesis founder Matt Shafiezadeh said there. "They already are."

Lincoln Property Co.'s Gabe Lerner estimated that about half of the loans maturing each year could end up as REO. Bisnow noted that many lenders lack operating experience, so a buyer that can run a troubled property and pay cash is often the one who sets the basis when a lender sells.

Trepp put the multifamily CMBS delinquency rate at 8.04% in September, and a separate Trepp review counted 130 performing Texas floating-rate agency loans, $3.04 billion in all, with coverage below 1.0, WRE News reported.

Delinquency on that Texas floating-rate agency book was 5.89%, against 1.26% for the rest of Texas agency loans. Fannie Mae's multifamily serious delinquency rate rose to 0.62% at the end of September from 0.60% in June, HousingWire reported.

Any new owner inherits a soft market for older units. The Greater Houston Partnership put Houston occupancy at 87.6% in the third quarter, and said Class C absorption was negative.

Realtor.com found 59.9% of Houston listings offering a concession in September, against 43.9% across the 50 largest metros.

Northmarq's Oct. 22 sheet quoted Freddie Mac 10-year money at 65% leverage at 6.13% to 6.28%, and the 10-year Treasury closed at 5.05% on Oct. 28, the day the Fed held at 3.75% to 4% on a 10 to 2 vote.

What to watch next

No hearing date has been set in case 2025-29027. The county wants either a one-year closure of the complex or a court-appointed receiver who could collect rent and make repairs, and County Attorney Abbie Kamin said the case could take months, a year or longer.

"It is taking too long, and someone is going to die if this is not handled with expediency and rigor," Kamin said at her Oct. 27 press conference.

A footnote in the petition names AFI as the current property manager. The county has asked tenants to send leases and written promises about security or maintenance, which could support Texas Deceptive Trade Practices Act claims.

Control of the ground will matter in any resale. The petition says Pecos still holds it, and since May 2025 an HFC working outside its home jurisdiction has needed approval from the local government where the property sits.