Lurin Real Estate Holdings - Chapter 11 Case Summary

Lurin Real Estate Holdings has filed for Chapter 11 bankruptcy amid loan defaults, foreclosure actions, and court-appointed receiverships triggered by Fannie Mae and KeyBank across three multifamily properties carrying approximately $123 million in secured debt, pursuing orderly sale processes with potential stalking horse bidders to preserve asset value and satisfy creditors in full.

Business Description

Headquartered in Dallas, TX, Lurin Real Estate Holdings XXI, LLC, Lurin Real Estate Holdings XXVIII, LLC, and Lurin Real Estate Holdings XXXIII, LLC (collectively, the "Debtors") are three multifamily property-owning entities within the Lurin family of companies ("LURIN"), a real estate redevelopment company with a lengthy history of identifying underperforming multifamily housing assets and unlocking value through enhanced management and operations, physical redevelopment, debt refinancing and restructuring, and capital structure optimization.

LURIN offers expertise in an array of multifamily real estate services, including acquisitions, asset management, operations, construction, supply chain solutions, technology innovation, and risk management.
LURIN currently owns 33 multifamily properties, of which the three Debtor entities each hold one.

The Debtors continue to operate their businesses and manage their properties as debtors in possession.

Corporate History

Jon Venetos founded LURIN in 2016. In December 2019, LURIN acquired each of the three properties that are the subject of these Chapter 11 Cases: the Latitude (built in 1976), the Aria (built in 1999), and the Emory (built in 1983).

Ownership Structure

Each Debtor is 100% owned by an ultimate holding company—Lurin Equity Partners XXI, LLC, Lurin Equity Partners XXVIII, LLC, and Lurin Equity Partners XXXIII, LLC, respectively. The ownership of these holding companies is divided between Lurin LLC, which is ultimately controlled by Venetos, and various class A members, as follows:

Lurin Equity Partners XXI, LLC (Latitude): Lurin LLC holds 24.99% and class A members hold 75.01%.
- The Latitude Debtor is 100% owned by an intermediate company, Lurin Real Estate Holdings XXI FHTX, LLC, which is in turn 100% owned by Lurin Equity Partners XXI, LLC.
Lurin Equity Partners XXVIII, LLC (Aria): Lurin LLC holds 10.00% and class A members hold 90.00%.
Lurin Equity Partners XXXIII, LLC (Emory): Lurin LLC holds 10.00% and class A members hold 90.00%.

Operations Overview

The Debtors' assets comprise three multifamily residential properties located in Texas and Florida, totaling 1,042 units. LURIN has invested over $15,150,000 in each property for post-acquisition renovations, including full interior and exterior renovations, amenity renovations, ongoing maintenance improvements, and life safety issues.

The Properties

Latitude 2976 (the "Latitude"): A 734-unit multifamily residential property located at 201 Wilcrest Drive, Houston, TX 77042. As of the Petition Date, the Latitude was approximately 75% occupied.
The Aria: A 108-unit multifamily residential property located at 1861 Stella Lane, Fort Walton Beach, FL 32548. As of the Petition Date, the Aria was approximately 80% occupied.
The Emory: A 200-unit multifamily residential property located at 3205 E. Olive Road, Pensacola, FL 32514. As of the Petition Date, the Emory was approximately 80% occupied.

Management and Workforce

The manager of each of the Debtors is Lurin Advisors, LLC, which is managed by Lurin Property Management LLC d/b/a Steward + Helm ("Steward + Helm"), pursuant to the terms of a Management and Leasing Agreement. Under this structure, the Debtors do not have any direct employees; all property-level staff are employed by Steward + Helm.

The Latitude is staffed by 11 full-time employees.
The Aria is staffed by 2 full-time employees and 1 part-time employee.
The Emory is staffed by 3 full-time employees and 1 part-time employee.

Prepetition Obligations

As of the Petition Date, the Debtors were indebted to lenders under three separate prepetition loan agreements, each secured by the respective Debtor's real property. The Debtors' aggregate estimated secured debt totaled approximately $123 million, and aggregate unsecured debt totaled approximately $1.94 million.

Secured Debt

Latitude Debtor: Approximately $79.20 million estimated balance as of March 1, 2026, under a loan originally made by JLL Real Estate Capital, LLC and subsequently assigned to Fannie Mae. The loan bears interest at 5.1% per annum, with a default rate at the maximum under applicable law. The loan was originated on June 30, 2023, and matures on July 1, 2033. Jon Venetos serves as guarantor.
Aria Debtor: Approximately $17.70 million estimated balance as of March 1, 2026, under a loan from KeyBank National Association bearing a variable interest rate. The loan was originated on October 11, 2024, and matured on October 11, 2025. Guarantors include Jon Venetos, Lurin Capital, LLC, and Lurin, LLC.
Emory Debtor: Approximately $26.10 million estimated balance as of March 1, 2026, under a loan from KeyBank National Association bearing a variable interest rate. The loan was originated on October 11, 2024, and matured on October 11, 2025. Guarantors include Jon Venetos, Lurin Capital, LLC, and Lurin, LLC.

Based on ongoing negotiations with potential stalking horse bidders, the Debtors believe that each of the properties has a value in excess of the respective amounts owed under the prepetition loans.

Unsecured Debt

Latitude Debtor: Approximately $1,418,630 in unsecured debts owed to fewer than 45 creditors (excluding affiliates).
Aria Debtor: Approximately $196,590 in unsecured debts owed to fewer than 30 creditors (excluding affiliates).
Emory Debtor: Approximately $325,180 in unsecured debts owed to fewer than 40 creditors (excluding affiliates).

Events Leading to Bankruptcy

Latitude — Fannie Mae Default and Foreclosure Actions

On October 14, 2025, Fannie Mae delivered a Notice of Default, Acceleration and Demand to the Latitude Debtor, asserting payment defaults. At that time, in September and October 2025, the Latitude Debtor had been in advanced discussions with a potential purchaser at an amount that would have paid Fannie Mae in full. However, after Fannie Mae posted the Latitude for foreclosure and filed suit, the prospective purchaser was no longer willing to move forward.

The Latitude Debtor attempted but was unsuccessful in negotiating a forbearance agreement with Fannie Mae to allow sufficient time to locate a buyer.
On November 6, 2025, Fannie Mae filed a complaint in the U.S. District Court for the Southern District of Texas (Case No. 25-cv-05297), seeking the appointment of a receiver and control over the rents generated from the Latitude.
Beginning in November 2025, Fannie Mae posted the Latitude for foreclosure each month, most recently noticing a foreclosure for March 3, 2026.

On March 2, 2026, the Latitude Debtor filed its Chapter 11 case to stay Fannie Mae's litigation and foreclosure in favor of running a value-maximizing sale process that it expects will generate sufficient proceeds to pay Fannie Mae and all unsecured creditors in full. Shortly before the Petition Date, the Latitude Debtor negotiated a listing agreement with Southwest Residential Partners Inc. d/b/a Newmark and anticipates promptly filing an application to employ Newmark to market the property.

Aria and Emory — KeyBank Maturity, Receiverships, and Foreclosure Actions

The Aria Debtor's and Emory Debtor's loans from KeyBank each matured on October 11, 2025. In late October 2025, a term sheet was executed with an unrelated third party to purchase five LURIN properties in Florida, including the Aria and the Emory. The proposed sale would have satisfied KeyBank's loans in full.

Both the Aria Debtor and the Emory Debtor attempted but were unsuccessful in negotiating forbearance agreements with KeyBank to allow sufficient time to pursue the sale.
On December 9, 2025, KeyBank filed suit against the Aria Debtor in state court in Okaloosa County, Florida, and against the Emory Debtor in state court in Escambia County, Florida, in each case seeking the appointment of a receiver and a judicial foreclosure.
On February 13, 2026, an order was entered appointing Hilco Real Estate, LLC ("Hilco") as receiver over the Aria, granting Hilco the exclusive right to collect all rents, take control of all bank accounts, and assume total control over management and operations of the property.
On February 11, 2026, a similar order was entered appointing Hilco as receiver over the Emory, with the same scope of authority.

Shortly before the Petition Date, each of the Aria Debtor and the Emory Debtor negotiated listing agreements with Cushman and Wakefield U.S., Inc. and anticipates promptly filing applications to employ Cushman and Wakefield to market the respective properties.

CRO Appointment and Chapter 11 Filing

On February 9, 2026, Lurin Capital LLC and its affiliates, including the Debtors, retained GlassRatner Advisory & Capital Group LLC as Chief Restructuring Officer. On March 2 and 5, 2026, the Debtors each filed voluntary petitions for relief under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

The Debtors filed these Chapter 11 Cases with the intent of running orderly sale processes to prevent the destruction of asset value that would result from pending foreclosures and receiverships.
The Debtors are in advanced negotiations with potential stalking horse bidders for their properties, and bid procedures motions filed concurrently with the First Day Motions set forth procedures for the designation and approval of one or more stalking horse bids.
Additionally, the Debtors are filing applications to employ brokers to sell all three properties.