Canada’s largest private landlord, Starlight Investments, is facing foreclosure on Emerson at Buda, a 304-unit apartment complex located at 950 FM 2001 in Buda, Texas. The property, which was built in 2021 and purchased by the Toronto-based firm in April 2022, is scheduled to be auctioned after Starlight defaulted on a $47.7 million loan from Natixis. Mannion Auctions will handle the sale set for October 17 at 10:30 a.m.
The mortgage amounts to approximately $157,000 per unit. Emerson at Buda features amenities such as a gym, pool, cabanas, and co-working spaces. It is situated about 16 miles south of downtown Austin in Buda, a town that has seen its population grow by more than 8 percent since 2020.
Over the past two years, Austin has experienced a significant increase in apartment supply. This influx has led to lower rental rates and 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.”
Emerson at Buda’s website archives show how these market changes have impacted its pricing. Three years ago, one-bedroom apartments started at $1,238 per month; today they are listed at $1,019—a decrease of nearly 18 percent. Two-bedroom units dropped from $1,598 to $1,278 over the same period—a reduction of about 20 percent. Despite these declines, the property is offering further incentives: new tenants can receive a $1,000 credit for signing a lease on a one-bedroom unit or one month free when renting a two-bedroom apartment.
Industry experts caution that distress within Texas’ multifamily sector may continue to grow. CWCapital’s James Shevlin noted that “In the next five years, $19 billion in CMBS loans tied to Texas multifamily will mature,” suggesting further challenges ahead for property owners and investors.
