Casata San Marcos Sold at Foreclosure Auction
The 210-cottage rental community in San Marcos has been acquired by Trez Capital following a recent foreclosure sale.
Updated on Oct. 22, 2026 in Apartments
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Trez Capital acquired the 210-unit Casata San Marcos cottage community for $35.3 million at a foreclosure auction on Oct. 6, 2026. The property, which features rental cottages on 24 acres, remains operational for current tenants.
Why it matters
The foreclosure follows a local supply glut that drove down rental income and left the developer unable to secure permanent financing. This change highlights the risks of new rental developments in markets experiencing rapid apartment construction.
The foreclosure sale finalized at $35.3 million for the 210-cottage development, which currently reports an occupancy rate above 30 percent. Rents at the 24-acre site continue to range between $1,349 and $1,649 per month.
The players
Trez Capital
A private real estate lender and investment firm that provided the original construction financing before acquiring the property at auction.
Casata
A developer specializing in detached rental cottage communities that maintains ownership of a project in south Austin.
The details
The project faced financial distress after construction delays occurred when crews discovered an unexpected fiber optic line while excavating a sewer system. When combined with a surplus of local apartment supply that suppressed projected income, the developer could not satisfy the requirements to transition from a construction loan to a permanent one. Investors ultimately declined to inject the additional capital needed to stabilize the project, triggering the foreclosure.
Timeline
2024: Construction loan issued and ground broken.
May 2026: First residents moved into the San Marcos community.
Oct. 6, 2026: Foreclosure auction sale occurred.
The Home Front
This foreclosure highlights the sensitivity of new multifamily developments to the broader regional surge in apartment inventory. As local supply increases, projects relying on aggressive rental growth targets face heightened financial volatility.
Current residents should check their lease agreements for any notices regarding property management changes following the transition to new ownership. Maintaining records of rental payments and utility services is recommended during this ownership transfer period.
The takeaway
Large-scale rental developments are particularly vulnerable when local housing supply grows faster than tenant demand. Residents in newly constructed communities should verify that their management contacts remain accurate as ownership changes settle.
Further reading
For more information on market trends, visit Apartments.
Source note: This article includes information reported by San Antonio Express-News.
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