29th Street Capital, the Chicago-based multifamily investment firm, is contending with several overlapping legal and financial pressures rather than one defining case: roughly $258 million in troubled floating-rate debt across nine apartment properties, a lawsuit the firm itself filed in Georgia over a $1.1 million homeowners assessment, two employment discrimination suits against its property management arm, a hurricane insurance dispute in Florida, and past scrutiny over eviction filings during the federal COVID-19 moratorium.
$258 Million in Watchlisted Multifamily Debt
The largest pressure on the firm is financial rather than a single courtroom fight. Lenders flagged nine of its properties for heightened scrutiny after debt service coverage ratios fell below 1.0, meaning the buildings were not producing enough income to cover their loan payments. The loans were taken out between 2020 and 2022 on floating rates, and rising interest rates pushed several deals into distress.1The Real Deal. Inside 29th Street Capital’s $258M in Troubled Floating Rate Debt
The watchlisted properties and loan balances:
- The Lake House at Martin’s Landing, Roswell, Georgia — $47 million
- The Highbank, Houston, Texas — $37.6 million
- Avana Sterling Ridge, The Woodlands, Texas — $37.2 million
- 79 Metcalf Apartments, Overland Park, Kansas — $33.5 million
- Spalding Bridge, Atlanta, Georgia — $29.7 million
- Waterside at RiverPark Place, Louisville, Kentucky — $18.6 million
- Southglenn Place, Centennial, Colorado — $18.6 million
- Lincoln Medical Center Apartments, Houston, Texas — $18.3 million
- The Davenport Apartment Homes, Sacramento, California — $17.8 million
The numbers show how quickly the math moved against these deals. At The Lake House at Martin’s Landing, rate cap escrow requirements went from $990 per month at loan inception to more than $200,000 per month. At 79 Metcalf, the debt service coverage ratio dropped to 0.26 in 2023, roughly a quarter of what was needed to service the loan. The 79 Metcalf loan matured in May 2024 and went under lender review for a possible extension.1The Real Deal. Inside 29th Street Capital’s $258M in Troubled Floating Rate Debt
The firm has been putting its own cash into the properties to cover shortfalls and has paused or delayed renovations at several. CEO Jeff Day and founder Stan Beraznik said in late 2024 that all loans reaching maturity had been extended, though multiple properties remained under lender scrutiny.1The Real Deal. Inside 29th Street Capital’s $258M in Troubled Floating Rate Debt
A separate $35 million loan on a 192-unit apartment complex at 131–171 South Burlington Avenue in Los Angeles had been delinquent since 2022. In February 2024, the manager of the collateralized loan obligation pool that held the debt pulled the loan out of the pool entirely, moving it onto the lender’s own books to protect other CLO investors from the delinquency.1The Real Deal. Inside 29th Street Capital’s $258M in Troubled Floating Rate Debt
Martin’s Landing HOA Suit Over a $1.1 Million Assessment
In November 2024, a 29th Street Capital entity called 29SC Lake House LP sued more than a dozen board directors and the property manager of Martin’s Landing Foundation, Inc., a nonprofit homeowners organization overseeing about 1,900 homes in Roswell, Georgia. The suit was filed in Fulton County Superior Court. The Lake House at Martin’s Landing apartment complex, one of the firm’s watchlisted properties, sits inside the community.2Appen Media. Suit Against Martin’s Landing Directors Alleges Misconduct in $1.1 Million Vote
The complaint challenges a $1.1 million special assessment the foundation’s board approved on October 10, 2024, to fund renovations for a 50-year-old clubhouse pool. Each homeowner’s share would run about $600. 29SC alleged the board misrepresented terms, abolished proxy voting, failed to establish a proper quorum, and unlawfully gave uncast member votes to board representatives to reach the required threshold. According to the complaint, more than 1,100 of the roughly 1,400 votes recorded in favor were cast by representatives rather than individual members. 29SC itself cast 300 votes against.2Appen Media. Suit Against Martin’s Landing Directors Alleges Misconduct in $1.1 Million Vote
29SC filed a verified petition seeking a temporary restraining order and preliminary injunction to block the assessment. Chief Judge Glanville set a hearing on the TRO request for January 6, 2025.329th Street Capital. MLF Vote As of the most recent reporting available, the board was proceeding with the project and collecting fees, saying no court order barred it from doing so.2Appen Media. Suit Against Martin’s Landing Directors Alleges Misconduct in $1.1 Million Vote
Two Employment Discrimination Cases in Georgia
Two suits have been filed against 29th Street Property Management LLC in the U.S. District Court for the Northern District of Georgia. Both settled; terms are not public.
In Lee v. 29th Street Property Management (Case No. 1:22-cv-03215), Kaydance Lee brought claims under the Age Discrimination in Employment Act and the Equal Employment Opportunity Act. The defendant filed a notice of settlement on August 16, 2023, and the plaintiff filed a stipulation of dismissal two days later.4UniCourt. Lee v. 29th Street Property Management, LLC
In Lewis v. 29th Street Property Management (Case No. 1:24-cv-05825), Sangria Lewis filed sex discrimination claims in December 2024. A settlement conference before Magistrate Judge Catherine M. Salinas on May 5, 2025 resolved the case, and the court administratively closed it. Lewis filed a stipulation of dismissal on July 23, 2025.5PACER Monitor. Lewis v. 29th Street Property Management LLC
Florida Hurricane Insurance Lawsuit
In 2025, 29th Street Management V, LLC sued National Fire & Marine Insurance Company and other insurers in the U.S. District Court for the Middle District of Florida (Case No. 8:25-cv-01994). The claim involves property damage caused by one or more hurricanes. Defendants include entities associated with AXA XL Ltd. and Lloyd’s America Inc.6Law360. 29th Street Management V, LLC v. National Fire & Marine Insurance Company
As of July 31, 2025, the court had issued a hurricane scheduling order and referred the matter to mediation, which must be completed within 210 days of a response to the complaint. The specific dollar amount of the claim and the property involved have not been publicly identified in available filings.7CaseMine. 29th Street Management V, LLC v. National Fire & Marine Insurance Company
Eviction Filings During the CDC Moratorium
29th Street Capital’s eviction activity drew outside scrutiny during the pandemic. The Private Equity Stakeholder Project, which tracked eviction filings by corporate landlords in select counties in Arizona, Florida, Texas, Georgia, Tennessee, and Nevada, reported in November 2020 that the firm filed 14 eviction actions in a 20-day window between November 1 and November 20, 2020, while the CDC’s federal eviction moratorium was in effect.8Private Equity Stakeholder Project. Eviction Actions by Corporate Landlords Rise Steadily Despite CDC Moratorium By July 2021, per testimony submitted to the U.S. House Select Subcommittee on the Coronavirus Crisis, total filings since the moratorium began in September 2020 had reached 199.9U.S. House of Representatives. Written Testimony of Jim Baker, PESP
Older and Smaller Matters
Court records show a handful of smaller disputes. In 2015, Bleau Fox filed a petition in Los Angeles County Superior Court to confirm an attorney-client fee arbitration award against 29th Street Capital LLC. The court granted the petition in December 2015, and the judgment was satisfied by October 2016. A small claims case brought by the City of San Diego against 29th Street Capital was filed in May 2017. Earlier contract disputes involving 29th Street Capital entities also appear in California court records.10UniCourt. Bleau Fox A P L C vs. 29th Street Capital LLC