Texas A&M Student Housing in Houston Faces Auction After $135M Loan Default

By Elias DaSilva | September 13, 2024.

Life Tower, a towering 19-story structure near the medical center, along with its parking facility, is on the brink of being auctioned. 

Another Houston property is on the foreclosure listings with the city due to a developer’s failure to meet a substantial loan obligation. This time, it’s Life Tower, a student housing facility for Texas A&M University located in the Texas Medical Center district.

Spanning 2.2 million square feet, Life Tower accommodates 714 beds across 438 units. It is set to be auctioned on Tuesday following the developer MediStar’s default on loans amounting to $76.5 million and $59.3 million, as reported by the Houston Chronicle. 

MediStar, based in Houston, owns the building, while the Texas A&M University System holds the land, according to Harris County records. In 2021, 

MediStar secured loans totaling $135 million from CIM Group. The tower has appeared on the foreclosure listings twice in the past year, though it was previously withdrawn.

A Texas A&M representative informed the Houston Chronicle that the looming foreclosure would not impact students or the university’s finances. Despite the prominent Aggie logos, the housing is open not only to Texas A&M students but also to those from nearby institutions like Rice University and the University of Houston. 

MediStar has not yet responded to requests for comments.

In recent years, MediStar has encountered difficulties, notably with a failed agreement involving a Chinese investor, as detailed by The Real Deal. Beijing Construction Engineering Group has filed a lawsuit against MediStar for attempting to sell a 1970s-era warehouse in the Texas Medical Center without their approval. The intended transaction was valued at $22.5 million, with plans to sell the property to homebuilder City Choice.

Houston is experiencing a wave of foreclosures, including properties like One Riverway and TwentyFour25 in the Galleria, both slated for auction. It’s not just commercial properties on the block; Tony Buzbee’s former mansion, a lakeside reserve in Magnolia near the city, and even city assets like BCycles are also heading to auction.