Lenders foreclose on several Rastegar Capital properties, including West Austin HQ

April 22, 2026 - 23:36

The financial distress surrounding real estate investment firm Rastegar Capital has deepened with the scheduled foreclosure auctions of several key properties, including the company's own West Austin headquarters. This move by lenders marks a significant escalation in the firm's ongoing portfolio troubles.

The two latest properties set for public auction include a prominent office building on West Avenue, which serves as Rastegar's corporate base, and a multifamily asset in San Antonio. These proceedings follow the recent foreclosure of several other Rastegar-owned properties in recent months, indicating a pattern of default across its holdings.

Observers note that the firm, known for its value-add investment strategy across multiple states, has been contending with the dual pressures of rising interest rates and shifting property valuations. The loss of a corporate headquarters is particularly symbolic, underscoring the severity of the situation. The upcoming auctions will determine new ownership for these assets, effectively transferring them out of Rastegar's control as lenders seek to recoup their investments. The firm's remaining portfolio and future operational capacity are now under intense scrutiny within the commercial real estate sector.