Ari Rastegar, CEO of Rastegar Capital, is facing foreclosure on four Austin apartment buildings tied to a $22.7 million loan from Greystone. The properties involved are Hyde Park Square at 206 West 38th Street, Sunset Palms at 902 Romeria Drive, The Chateau at 1211 West 8th Street, and The Highlander at 803-809 Tirado Street. The debt averages $139,263 per unit.
Rastegar addressed the situation during an event organized by The Real Deal and his firm in Downtown Austin last month. “If you can’t sell them, fucking kick the keys back,” he said.
He attributed the foreclosure to an ongoing dispute with the lender. “The foreclosure is the result of a ‘knock-down, drag-out fight with the lender,’” Rastegar said, adding that he intends to continue litigating even if he loses ownership of the properties. He noted that these assets represent only a small portion of his overall portfolio.
The Austin multifamily market has experienced significant challenges due to an oversupply of new units in recent years. Deliveries peaked in 2024 and are expected to reach over 26,000 units by year-end according to Rent Cafe projections—a slight decrease from last year’s record numbers. This surplus has contributed to declining rents and increased affordability for tenants.
JLL’s Kai Pan commented earlier this year that falling rents have made Austin the most affordable city for renters nationwide.
Rastegar also remarked on market conditions: “Class C apartments in Austin have been ‘annihilated by the market.’” Despite current difficulties, he remains focused on larger projects such as Infinity Square—a planned community between Austin and San Antonio set to include 1,000 single-family homes and 1,400 apartments. In 2024, Rastegar secured a $31.7 million construction loan from Trez Capital for this development.
Reflecting on his approach amid financial pressures, Rastegar stated: “This is part of the business, dude.”
