As inflation costs increase and rising property values lead to higher taxes,
today’s commercial property owners and management companies have to
make every dollar count. Fighting back against unfair property values is a
crucial piece of the puzzle — but knowing who to trust with the work, and
how best to protect your interests, isn’t easy.
Large property tax firms are acquiring smaller operations more and more
frequently, often resulting in rate hikes and shifts in business that do more
harm than good. For property owners or management companies whose
longtime firms do change hands, it’s important to look out for key warning
signs that could spell financial trouble down the line. Let’s take a look at
why these acquisitions are happening and ways you can protect yourself
and your investment.

The Shift Toward Fewer, More Corporate Property Tax Firms
This trend of smaller, locally owned firms selling to big corporations began
in the late 2000s. As property values increased and property taxes
followed, corporations saw the chance to grow their market share. Later, as
mom-andpop property tax firms felt financial pressures from the COVID-19
pandemic, buyouts gained momentum.
Consolidations have become common throughout the U.S., but certain
regions feel the effects more than others. Here in Texas, where there is no
state income tax, property taxes are a substantial source of revenue for
local governments — and a prime opportunity for property tax firms
seeking to expand. Meanwhile, states with elevated property values, such
as New York and California, often have high tax rates that drive demand
for protest services. This makes them attractive to large firms looking to
grow their business by eliminating the competition.

Red Flags to Watch for Following a Merger
What happens if the property tax firm you’ve trusted for years suddenly
switches hands? Property owners who’ve experienced this frequently
mention rate increases and unhappy shifts in business models. And
whether change comes immediately or years down the line, even subtle
shifts can impact business in big ways. Here are some warning signs to
watch for following an acquisition.

• Loss of Local Expertise: The most effective property tax protest
firms understand local laws and markets while maintaining established
relationships with county tax authorities. Shifts to more corporate,
centralized operations often lose that specialized knowledge, potentially
impacting your protest outcomes in negative ways.

• Diminishing Service Quality: Turnover often increases following
a purchase, potentially pairing property owners with less experienced
Resilience in Real Estate: Helping Commercial account managers who may
not fully understand local nuances. In addition, when cost-cutting
measures reduce staffing, you might experience lower response rates and
poorer protest outcomes as overburdened employees take on too much work.
• Contractual or Fee Changes: It’s important to carefully review service
agreements following a purchase. Watch for modifications that reduce
accountability, increase fees or lock you into long-term contracts that could
impact budgets.

Swaying the Odds in Your Favor
Appealing high commercial property taxes can save your business
thousands each year, but protests must be approached the right way. If you
don’t feel your appeal is receiving adequate attention or expertise, it’s
important to stick up for yourself. Here are some tips to help keep appeals
on track.

• Be OK with Being the Squeaky Wheel: Has your firm failed to alert you
to upcoming deadlines? Is it unclear where your protest stands? Have
recent bills featured unknown charges? Bring concerns to your firm’s
attention. A trustworthy company should be willing to discuss your issues
and make things right where situations call for it.

• Familiarize Yourself with the Protest Process: Understanding a
protest’s steps, deadlines and what’s required to prove a case can help you
pinpoint instances where a firm’s service is lacking. If something doesn’t
seem right, or if you have questions, speak up.

• Don’t Be Afraid to Look Elsewhere: Switching firms can be intimidating,
but with so much riding on your protest’s outcome, it’s often worth it. Here
are some factors to consider during your search.

o Are They Local? A firm rooted in your home state will understand
the laws and market conditions behind your property taxes, the
inner workings of your county appraisal district (CAD) and the
best way to approach your case.

o Where Do They Do Business? If you have properties spanning
multiple cities or states, you’ll want a firm that can serve on all
fronts. My firm, for instance, is located in Houston but protests
throughout Texas and into Colorado, Arizona and beyond.

o Do They Have Staying Power? Seek a firm that’s established,
maintains a proven track record and has a solid reputation. Do a
deep dive into their website and online reviews, and consider
asking for references.

It isn’t easy when the company you’ve always trusted to protest your unfair
property tax protests changes hands, but it isn’t the end of the world. By
staying vigilant and strategic — and being willing to stand up for yourself.

DXD Capital broke ground on a multi-story, Class-A, climate-controlled storage facility in San Antonio, Texas.

The facility will be located at 11202 Misty Woods St. and will offer 870 individual storage units totaling 80,490 net rentable square feet. The facility features two levels of ground floor units and excellent visibility and access to West Loop 1604.

Reliable Commercial Construction is the general contractor, and Wintrust is the construction lender. Extra Space Storage will manage this facility.

The property was acquired in July 2024. To date, DXD has invested in nineteen self storage developments and one seven-facility portfolio acquisition across the United States.

The facility is expected to open in Q3 of 2025

 JLL Capital Markets announced today it secured the $227 million refinancing for The Union, an iconic mixed-use development within the Uptown submarket of Dallas, Texas.

JLL worked on behalf of a joint venture between KB Asset Management Co., Ltd. and RED Development to secure the two-year loan with three one-year extension options with Goldman Sachs.

The property consists of The Union’s office and retail components, totaling 505,994 square feet, which are 98% leased. The 21-story office tower, completed in 2018, includes nine levels of garage parking and market-leading amenities, including a greenspace amenity deck with entertainment space, a tenant lounge, a fully equipped conference center and a state-of-the-art fitness facility with locker rooms. Additionally, the office tower is leased to a collection of investment-worthy tenants, including Salesforce, Invesco, Akin Gump and Weaver.

The retail space at The Union Dallas is anchored by a Tom Thumb grocery store and the first and only locations in Dallas for Fox Restaurant Concepts The Henry and North Italia.

Located in the heart of Uptown, The Union offers easy access to Victory Park, Harwood District and Downtown. The property also boasts excellent connectivity via Woodall Rogers Freeway, McKinney Avenue Trolley and DART Rail station.

The JLL Debt Advisory team was led by Senior Managing Director Jim Curtin, Managing Director Greg Napper and Vice President Rex Cruz.

Cove Capital Investments completed the purchase of The Peanut Factory Lofts, a multifamily asset in downtown San Antonio, Texas.

The acquisition will establish the Cove Capital San Antonio Multifamily 74 DST, a Regulation D, Rule 506(c) offering that aims to raise $18,679,418.00 in equity.

According to Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments, this unique asset was an all-cash acquisition and is considered a high quality addition to the firm’s growing portfolio of debt-free Delaware Statutory Trust real estate assets for 1031 exchange and direct cash investors.

Cove Capital immediately inserted its property management team with over 40 years of experience to oversee the day-to-day management of the asset. This property management team physically lives in San Antonio, ensuring a thorough understanding of the market dynamics and providing true boots and eyes on the ground.

In addition to the investment fundamentals of the San Antonio Multifamily 74 DST, several architectural aspects make this property a unique addition to the Cove Capital Investments portfolio.

This latest Cove Capital acquisition also offers a host of premium amenities, including private garages, a coffee bar, a courtyard, door-to-door trash pick-up, a dog park, a fitness center, and a resort-style pool with cabana.

 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