Three apartment properties in Alabama and Georgia, known as the Tusk Multifamily Portfolio, have moved into special servicing, according to a Morningstar Credit report shared with Multifamily Dive.
The sponsor of the loan is listed as Moshie Horn, according to a filing with the Securities and Exchange Commission. Horn is listed as principal of Tusk Equity Partners, according to his LinkedIn profile. He didn’t reply to a request for comment.
The $33 million loan backing the three properties was originated in November 2023 and went into servicing after falling delinquent and defaulting. It had a 1.14x debt service coverage ratio at the end of 2025, down slightly from the 1.25x DSCR at underwriting, according to Morningstar.
The garden-style properties include: Magnolia Manor, a 122-unit property in Birmingham, Alabama; The Residence at Patriot Place, a 257-unit property in Columbus, Georgia; and The Retreat at Ragan Park in Macon, Georgia, with 144 units. The Tusk Multifamily Portfolio Properties were built between 1970 and 1987 and renovated in 2023, according to SEC filings.
In the report, Morningstar commented that it wasn’t clear what caused the delinquency. However, the servicing notes included commentary indicating a fire at one of the properties at the end of 2024.
While there is ongoing remediation work, the damage was fairly limited based on the amount of money reserved for repairs, according to David Putro, head of commercial real estate analytics at Morningstar Credit. Occupancy at the three properties was 84% at the end of 2024.
“Given that it’s a newer loan, there’s little financial history beyond the DSCR,” Putro told Multifamily Dive in an email.
Servicing rate increases
The multifamily special servicing rate rose 12 basis points to 8.32% in October, according to data firm Trepp. A year ago, it sat at 6.21%.
The Trepp CMBS Special Servicing for commercial real estate rate rose to a record in October, climbing 19 basis points to hit 10.84%.
As distress rises, some owners see buying opportunities increasing. When Broad Creek Capital completed the first close of its $150 million BCC Multifamily Advantage Fund I, the Washington, D.C.-based investment firm saw “a really compelling entry point in the market,” according to BCC Co-Founder Matt Ruesch.
As part of that opportunity, BCC is seeing more problem properties hit the market, though many are plagued by distress in their capital stack.
“We've already seen a lot of opportunities to go out and acquire assets that, frankly, are performing quite well, but just have floating rate debt that's maturing or have current ownership that is just feeling the squeeze,” Ruesch said.
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