Multifamily in Forbearance Trades on Northwest Side

One of the more complex transactions TMG has facilitated in recent memory was the sale of Stone Oak Place Apartments — a 188-unit garden community on San Antonio's Northwest Side — which changed hands while the seller was actively in a forbearance agreement with the servicer.

The Situation

The seller, an out-of-state private owner, had taken forbearance on a CMBS loan during the spring of 2020 as occupancy dipped below 85%. By summer, the property had stabilized at 91% but the forbearance overhang created lender uncertainty and made conventional financing difficult for buyers.

How TMG Structured the Sale

TMG identified a buyer comfortable with bridge financing who could close the transaction while the forbearance was simultaneously resolved. The servicer agreed to a payoff schedule that satisfied the outstanding deferred interest as part of the closing waterfall.

The Outcome

The property closed at $18.2 million — approximately $97,000 per unit — a meaningful discount to pre-pandemic comp pricing that gave the buyer significant value-add upside. The seller avoided a potential note sale or foreclosure proceeding.

Distress-adjacent situations require patience, creativity, and lender relationships. Contact TMG to discuss your situation confidentially.