A crackdown by Immigration and Customs Enforcement (ICE) on illegal immigrant activity is being blamed for an Austin multifamily property moving to special servicing after nearly three-quarters of residents abruptly moved out.
According to a Multifamily Dive report sourced from Morningstar Credit, the 294-unit Villas Del Sol property fell delinquent on its Freddie Mac loan despite having a robust cash flow as recently as 2023.
“However, servicer commentary alludes to decreasing local employment and ICE operations in the area as the proximate cause of a sharp drop in occupancy down to 75% as of September 2025,” said Morningstar.
The property is owned by Rap Villas Del Sol LLC, which acquired it in 2018 from Austin Capital Advisors. It is currently managed by ACA Property Management and was appraised earlier this year for $35.6 million.
Photo courtesy of Trulia
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