Trez Capital Acquires Casata San Marcos After Foreclosure

The firm purchased the 210-cottage community at a foreclosure auction held on October 6, 2026.

Updated on Oct. 22, 2026 in Apartments

Trez Capital Acquires Casata San Marcos After Foreclosure

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Trez Capital acquired the Casata San Marcos rental community for $35.3 million during a foreclosure auction on October 6, 2026. The 210-cottage development had struggled with occupancy following its May 2026 opening.

Why it matters

The project faced financial difficulties due to a local glut of apartment supply that suppressed rental income and a lack of additional investor capital. These challenges prevented the property from successfully transitioning from its original construction loan to a permanent financing structure.

The development spans 24 acres and consists of 210 rental cottages priced between $1,349 and $1,649 per month. Current occupancy at the site remains above 30 percent.

The players

Trez Capital

This private real estate investment firm provided the original construction financing for the development.

Casata

This developer specializes in cottage-style rental communities and continues to operate a property in south Austin.

The details

Development was hampered by construction delays caused by the discovery of an unexpected fiber optic line during sewer excavation. The project was intended to serve as a multi-family cottage community but struggled to compete in a saturated rental market.

Construction loan issued in 2024.
Community opened to residents in May 2026.
Foreclosure auction sale occurred on Oct. 6, 2026.
New developments in College Station and Bastrop are planned for 2026-2027.

Culture Shift

This foreclosure highlights the broader market struggle for modern cottage-style rental concepts amid a national trend toward high inventory and slowing rent growth. It signals a departure from the rapid expansion strategies that characterized the post-pandemic housing boom.

Current residents of the Casata community may see operational shifts or management changes following the ownership transition. Renters should monitor their lease agreements for any updates regarding property management policies.

The takeaway

Real estate investors must account for local market saturation and unexpected infrastructure hurdles when calculating project viability. Prospective tenants should remain cautious of long-term stability when signing leases in newly developed communities with low occupancy rates.