Unconventional Austin Apartment Repossessed

The developers of Capital Quarters tried a new business model. Starting in August of 2022, the company offered downtown living with roommates. They offered lower rates than typical downtown apartments with no parking. The apartment project has 30 three-bed, two-bath units, with unfurnished bedrooms for $1,200 per month and furnished bedrooms offered at $1,600 per month.

But Covid hit, and things did not go well. Even with favorable rental rates, Capitol Quarters struggled to maintain high occupancy rates. A lender has taken possession of the downtown Austin apartment mid-rise 13 months after tenants moved in.

The Austin Business Journal reports Churchill Real Estate Holdings recently secured a deed in lieu of foreclosure for Capitol Quarters. A deed in lieu of foreclosure is an arrangement where a property’s ownership is voluntarily turned over to the lender to avoid the foreclosure process. The lender repossessed the building at 1108 Nueces St. from developer Weaver Buildings LLC.