This Apartment Complex Can’t Pay Its Debt

#realestate #apartments #commercialrealestate #housingmarket #atlanta Elliot Roswell, an apartment complex about 19 miles north of downtown Atlanta, wasn't the only troubled loan in its deal. Its floating-rate loan was packaged with other commercial real estate loans inside a 2021 CRE CLO known as FS Rialto 2021-FL3. By August 2026, multifamily loans in that one CLO totaling about $353 million had moved into special servicing, including roughly $49 million from Elliot Roswell, $42 million from Grace Abernathy and $40 million from 415 Premier. According to CRED iQ, the CLO had been adding about one new default every eight weeks in 2026, and the distress rate across CRE CLOs jumped from about 19% in July to 28% in August. That doesn't mean the whole apartment market is collapsing, but highly leveraged deals made during the boom are under serious pressure. Related video: Apartment Investors are Starting to lose everything - here's why