JLL Capital Markets secured a $55 million loan for Urban East, a newly constructed, 381-unit, Class-A multifamily community in Austin, Texas.

JLL worked on behalf of the ownership team which includes Battery Global Advisors, Housing Authority of the City of Austin, River City Capital Partners and LDG Development to facilitate the floating-rate loan through Goldman Sachs Alternatives.

Located at 6400 E Riverside Dr., Urban East offers convenient access to Downtown Austin, the University of Texas and the Austin-Bergstrom International Airport. Residents of the complex can enjoy nearby retail and entertainment options as well as close proximity to large employment centers.

JLL Capital Market’s Debt Advisory team representing the borrower was led by Managing Director Kyle Spencer and Senior Director Dan Kearns.

Urban East is a newly constructed apartment community that offers modern, open-concept floor plans in a mix of studios, one-, two- and three-bedroom units. Each unit features a large walk-in closet, stainless steel appliances, hardwood-like vinyl floors and a balcony. Residents can enjoy community amenities such as a high-tech fitness center, a game room, a bowling alley, two resort-style pools, a rooftop lounge and electric charging stations.

Distress is rising fast in today’s multifamily market, and owners and
operators face challenges not seen in years. The national distress rate
for multifamily properties, which includes delinquent and/or specially
serviced loans, stood at 8.4% in July, more than triple the 2.6% rate
reported in January, according to CREDiQ, which tracks all commercial
real estate loans securitized with CMBS financing. The multifamily
sector is now the third most-stressed real estate asset class, following
office (12.2%) and retail (11.8%) and surpassing hotels (7.8%) last month.
There are several reasons for this sharp rise in multifamily distress,
including maturing construction financing from the zero-interest rate
period forcing landlords to refinance into much higher rates, if they can
refinance at all. Surging operating costs such as insurance premiums and
overbuilding in some markets are also taking their toll.
But my company, Lynd, firmly believes that downturns are where
fortunes are won (and lost), and there is an abundance of opportunity
in the current cycle. That’s why it’s important to choose a multifamily
property manager that knows how to navigate these cyclical challenges.
Here is our playbook for turning around distressed multifamily properties.
Step One: Diagnosing the Problem
The first step to turning around a troubled asset is conducting a thorough
and objective assessment of the property. As with a real estate acquisition,
our due diligence includes researching the property’s location, expenses
and revenues, physical condition, position in the market compared to its
competitors and overall operating performance.
A property must be viable for us to take it on for property management,
something that’s not always easy to distinguish for inexperienced
managers. We’ve seen Class A+ multifamily properties fail because of
mismanagement, and Class B and C properties that were run well but were
undercapitalized and needed value-add renovations to be competitive in
their market. We have the experience to identify issues and the resources
to assess quickly, formulate and execute the strategy to lead to great
results.
Step Two: Prescribing an Operational Overhaul
Multifamily property management encompasses a lot, including
marketing, resident acquisition and retention, rent collection,
maintenance, financial management and more. We look at all of these
factors to prioritize what needs to be done to improve the asset.
The Need for Good Data
In our approach, data is crucial in ensuring good operations, and we set up and implement systems to capture crucial data throughout the operation. Before returning to Lynd in my current role, I worked in Mexico at what was effectively a private equity startup in the multifamily space. We emphasized openness and collaboration across our portfolio in our operations, with a focus on collecting and harvesting data and sharing it across company divisions, an approach I’m bringing to Lynd. It ensures alignment on budgets and de-risks the entire platform, as well as better informs the opportunities we pursue and those we let die on the vine.
With regards to data, there are some key factors “under the hood” that
we prioritize. One is controlling expenses, especially payroll, insurance
and contract services. These make up the bulk of operating management
expenses at any site and can largely be controlled. For example, often we
can cut contract services by 20% without impacting resident services.
Retaining and Attracting Residents
Resident acquisition and retention are also crucial. We talk to residents
and get their sentiment. Why did they choose to live there? What were
their expectations and what has been their experience? What needs to be
improved?
Especially at a distressed property, retaining existing residents is
as crucial as attracting new ones. Enhancing customer service and
responsiveness to maintenance requests can significantly improve
tenant satisfaction. We regularly reassess lease terms to ensure they
remain fair and competitive, which might involve renegotiation to better
meet residents’ needs while still aligning with property goals.
Offering move-in incentives or flexible leasing options can also be
effective, particularly when combined with targeted marketing efforts
aimed at the specific demographics you wish to attract.
Creating a sense of community is key to resident retention. We foster
connections among residents through organized events or communal
spaces, which can enhance their overall living experience and reduce
turnover. By focusing on both the satisfaction of current tenants and the
attraction of new ones, you can create a vibrant, thriving property that
stands out in the market and ensures long-term success.
Always with residents, it is crucial to be personable and congenial; it’s
part of their experience. Which brings me to a broader point, which is the
importance of the human element in effective property management on
a distressed asset.
Property Management Is a People Business
That includes staff. Front-line staff are the backbone and heart and soul
of a successful multifamily property. Property management is not easy.
You’re satisfying an essential need for the renter, and it’s important to
have employees who genuinely care, have opportunities for development
and are appreciated. What a fulfilled employee will do is exponentially
more productive than what a disgruntled employee will do, and they are
crucial to a positive tenant experience in all types of properties.
Get the Financial House in Order
In today’s volatile market, it’s also crucial to reassess the financial setup
of your properties to ensure long-term stability. We start by evaluating
existing debt structures and opportunities for refinancing. Adjusting
these financial levers can create a more resilient portfolio.
Through strategic financial restructuring—whether it’s optimizing
debt terms or securing advantageous refinancing—you can create the
financial stability necessary to weather current challenges and set the
stage for recovery. This proactive approach not only safeguards your
assets but also positions your property for sustainable growth in the
years to come.
Step Three: Undergoing Physical Therapy
Some multifamily properties will require capital improvements – from
lobby or other common space renovations to unit upgrades – to be
competitive in any market. To draw in new residents, we might upgrade
amenities, such as adding modern fitness centers or co-working spaces,
which can distinguish a property from its competitors. But whether
you’re a homeowner or the property manager of a 500-unit building, a
key question is how to prioritize capital expenditures that add value to
your property without overextending it financially. The trick is to make
sure you spend enough but not too much to get payback over a reasonable
time. To do this, we identify the value-add upgrades that are most
desired by the target tenant base and directly enhance the quality of the
resident experience at the subject property. Renters are most willing to
pay more for the enhancements/upgrades that enrich their daily lives vs.
occasional use.
Conclusion
The multifamily market is undoubtedly in flux, but this period of change
presents significant opportunities for those prepared to adopt a strategic
approach. By carefully assessing current property performance,
overhauling operational inefficiencies, revisiting financial structures
and focusing on tenant attraction and retention, property owners can not
only weather the storm but position themselves for long-term success.
At Lynd, we’ve seen firsthand how these strategies can stabilize properties
and drive recovery, even in the most challenging environments. I
encourage you to reach out to experienced property managers that can
implement these approaches tailored to your specific needs, ensuring
your property remains competitive in an uncertain market.
Josué Garza rejoined Lynd in April 2024 as president of property management
as the firm looks to expand its third-party property management portfolio,
currently 22,000 multifamily units across 20 states. Garza has 14 years’
experience in property management, most recently as director of property
management at Gran Ciudad, a Mexico City-based privately held affiliate of
Black Creek Capital that develops, owns and operates multifamily housing
throughout Mexico. Garza’s previous role with Lynd involved overseeing
rental properties in Texas, Arizona, Colorado and California. He holds a
B.A. in real estate finance from the Rawls College of Business at Texas Tech
University

The NRP Group in partnership JPS Health Network announced the financial closing of a 67-unit mixed-income multifamily development in Fort Worth, Texas.

Sixty of the units will be reserved for residents earning 30, 50 and 60 percent of the Area Median Income (AMI), with the remaining seven set aside as market-rate. The development will also include 2,200 square feet of commercial space leased to JPS Health Network to service residents and the surrounding community.

Positioned next to a key site in JPS Health Network’s $2.1 billion bond program expansion, Thrive on Crawford is part of a broader vision to enhance healthcare services across Tarrant County. The new community will provide essential housing options for healthcare workers, young professionals, and families, offering an urban lifestyle close to boutique shops, restaurants and entertainment venues.

The project will feature a variety of one-, two-, and three-bedroom apartments with high-end finishes. Amenities will include a business center, community kitchen and lounge, fitness center, children’s playroom, and an outdoor playscape. Thrive on Crawford will also offer a comprehensive resident services program, including adult literacy workshops, financial training and youth afterschool and summer programs.

Project financing was provided by JPMorgan Chase and Berkadia, with tax credit equity investment from CVS Health through an investment fund managed by Red Stone Equity Partners. Additional funding was provided by the Near Southside Financing Zone TIF and Texas Department of Housing and Community Affairs. Wynne Jackson and Servitas helped co-develop the community.

CVS Health’s investment in Thrive on Crawford is a local demonstration of the company’s mission to improve the health of individuals across the country.  This health and housing collaborative not only allows JPS essential and other local employees the opportunity to live in affording housing in the community in which they work but also provides all residents immediate access to important healthcare services including primary care, pediatric, behavioral health, orthopedics, cardiology, and oncology. 

Thrive on Crawford marks The NRP Group’s fourth “Health and Housing” development, and the company’s first in the State of Texas. The Dallas metro area remains a priority market for The NRP Group. The firm has developed over 6,000 units across 27 properties in the region, and recently broke ground on a new affordable housing development, The Fielder, in Mesquite.

Construction of Thrive on Crawford is already underway, with completion slated for early 2026.

Eastham Capital partnered with Mosaic Residential in the acquisition of Amber Oaks and Park Place in the Houston suburb of Pearland.

South Florida-based Eastham Capital has invested in the deal through its current fund, Eastham Capital Fund VI, LP.  Mosaic Residential, who has co-invested and partnered with Eastham Capital on multiple projects, will oversee the day-to-day management. The acquisition price was not disclosed.

Amber Oaks, totaling 63 units, is 95% occupied, with in-place average rents of $1,450/month and Park Place, with 101 units, is 96% occupied, with in-place average rents of $1,167/month.  The communities, which are adjacent to each other, have shared amenities.

This acquisition includes a renovation budget in excess of $1 million to upgrade the units with the finishes and features expected by today’s class “A” renter.  The interior improvements will include upgrading the appliances to stainless steel, modernizing the flooring and fixtures, updating the paint, and installing smart home packages. 

Constructed in 2015 and located at 2685 Old Alvin Rd, Amber Oaks offers 16 one-bedroom, and 47 two-bedroom apartments spread across two three-story buildings with units featuring nine-foot ceilings, granite countertops, washer/dryer connections and private balconies.

Constructed in 1972 and located at 3340 E Walnut St., Park Place has 21 one-bedroom, 72 two-bedroom and eight three-bedroom apartments.  Park Place has 14 two-story buildings with tenants having access to 101 covered parking spaces.  Amber Oaks and Park Place are adjacent to each other; therefore, residents will have access to shared amenities including a pool, playground, picnic area, a grilling station, and a laundry facility. 

PCCP, LLC acquired a 13-acre parcel of land for the  construction of Skymor at Pearland, a Class-A, 109-unit built-for-rent gated townhome community on Old Chocolate Bayou Road in Pearland, Texas.

A Houston-based single-family homebuilder, Integrity Community Builders, a Weekley Homes LLC company, has been commissioned by PCCP to immediately commence construction on the finished lots, with first homes anticipated to be delivered in February 2025.

Skymor at Pearland will consist of 58 four-bedroom end units (1,938 sf), 29 larger three-bedroom units with a loft (1,866 sf), and 22 three-bedroom units with no loft (1,763 sf). Every unit will include a two-car garage and a two-car driveway.

Additionally, unit interiors will feature stainless steel appliances, quartz countertops, vinyl plank wood flooring in the common areas and on the stairs, with carpeted flooring in the bedrooms, a washer-dryer, and nine-foot ceilings. The community will include several greenspaces, two open-air gazebos, a decomposed granite trailway/paseo, a playground and a dog park.

The healthcare real estate industry is evolving to meet the needs of patients who prefer to receive care in outpatient facilities instead of being forced to travel to busy hospitals. But what if healthcare providers struggle to find the employees they need to staff the new freestanding clinics and ambulatory care centers they are opening?

That’s a major topic of JLL‘s first Employee Perspective on Healthcare Real Estate survey. The report, which collected responses from more than 1,000 healthcare employees, explores how healthcare companies can best attract and retain workers.

JLL’s report found that this is a challenging time for healthcare employers. According to the survey results, nearly a quarter of healthcare employees are considering leaving their jobs in the next 12 months. A total of 10% of survey respondents said that they plan to leave the healthcare industry.

JLL researchers said that employees are leaving their jobs or the industry not only because they are seeking higher pay — though that certainly matters — but because they are seeking less-stressful or exhausting positions. Others are looking for a shorter commute to work.

“Humans rely on healthcare at their most vulnerable moments, and the people who provide that care are essential. At its core, healthcare is humans taking care of humans,” said Cheryl Carron, chief operating officer for JLL Work Dynamics Americas, in a written statement.

“While pay and benefits remain top priorities, in today’s competitive labor market, employers need to look beyond compensation and recognize how the physical workplace plays a crucial role in employee experience and can significantly impact employee satisfaction,” Carron said.

More than 40% of respondents ranked location/proximity to their employer in their top three factors for choosing a new position.

Clinicians ranked the specific role they would take on in their top three factors over location more often than those working in operational positions. This is not surprising considering physicians, advanced practitioners and nurses are more specialized, JLL said.

Members of different generations are also looking for differing benefits from their work situations. A total of 31% of Gen Z respondents, a generation that has more entry-level workers, placed higher importance on workplace culture, while 15% of Baby Boomers chose flexibility as their top factor in choosing a position.

The specific role was of higher importance to Gen X and Baby Boomers, with 45% and 46% placing it in their top three criteria, respectively, according to the survey. One-third of millennials chose pay and benefits as their top factor compared to 22% of Gen X and 21% of baby boomers.

“We’re seeing a clear shift in priorities across generations,” said Kari Beets, senior manager of Healthcare Research for JLL, in a statement. “Healthcare organizations need to take a nuanced approach to workplace strategy to meet the diverse needs of their multigenerational workforce.”

The research also shows the importance of location factors, including proximity to affordable housing, shopping and restaurants; safety; and convenience. For employees considering leaving their roles, 22% said that their jobs were too far from affordable housing, likely contributing to their desire to leave.

“If you can’t move your location, explore how to change your location,” said Jay Johnson, U.S. practice leader for Healthcare Markets at JLL, in a statement. “By making improvements that speak to the concerns that lead to attrition, healthcare organizations can improve employee experience and satisfaction.”

How can healthcare employers make their workspaces more attractive to potential employees? According to JLL’s survey, addressing safety issues should be a priority. Employers can add lighting and boost security patrols.

Employees also enjoy working near restaurants, shopping and other amenities, according to JLL’s survey. Healthcare providers who also own facilities can attract restaurants and shopping nearby, JLL said in its report. Another option? Health systems can join with state and local programs to kickstart affordable and workforce housing developments or partner with private developers themselves.

Healthcare providers who want to retain employees need to give them a pleasant place at which to work. According to JLL’s survey, employees planning to stay in their current positions were more likely to report that their workplace enabled them to work productively (93%), provides technology to help with efficiency (90%), allowed them to care for patients effectively (88%) and supported their overall well-being (87%).

“There are numerous ways they can improve the employee experience through thoughtful workplace design and amenities,” said Andrew Quirk, Institutional Industries Lead for Project and Development Services at JLL, in a statement. “Providing well-maintained spaces for rest and recharging like breakrooms and outdoor areas with green space can have a significant positive impact. Just as important as creating and maintaining them is ensuring these spaces are accessible to all employees.”