The commercial mortgage-backed securities loan on an apartment complex owned by an embattled real estate developer is headed to special servicing following a recent bankruptcy and numerous lawsuits.
The $61 million loan, secured by Estates at Palm Bay, a 300-unit townhouse community in Fort Walton Beach, Fla., has been sent to special servicing after sponsor Lurin Capital filed for bankruptcy, according to an alert from Morningstar Credit.
The conduit loan — which makes up 5.8 percent of BBCMS 2024-5C29 — was originated in August 2024 and has been late on payments since May 2025. A recent fire at the property knocked out four units, according to Morningstar.
As of March 23, the loan is between 60 and 89 days delinquent, per Morningstar data.
Estates at Palm Bay opened in 1992 and is located at 302 Blessinger Drive in Fort Walton Beach, a city on the Florida Panhandle and right on the Gulf of Mexico.
The special servicing transfer is the latest hit for Jon Venetos’ foundering Lurin Capital, a multifamily syndicator that filed for bankruptcy in early March and is now subject to several lawsuits, including one alleging fraud,
The Real Deal reported earlier this month that Lurin Capital had upended a planned foreclosure sale of a Houston apartment complex after filing for bankruptcy, arguing in bankruptcy documents that it has 50 to 99 creditors and $50 million to $100 million each in estimated assets and liabilities.
Any bankruptcy filing automatically pauses the foreclosure process.
But Lurin Capital is also being sued by Acore Capital, which claims Venetos defaulted on nearly $400 million in loans tied to 12 properties in Florida, and that he owes the firm $81 million that he borrowed. Not for nothing, Venetos is also being sued by Fannie Mae over a $77.2 million property default, as well as by Vista Bank and Keybank, which have each claimed defaults on loans, and each bank claiming Venetos committed fraud, according to The Real Deal.
Lurin Capital did not respond to requests for comment.
Brian Pascus can be reached at bpascus@commercialobserver.com.
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