I’m a fairly longtime believer in REITs as a good income balancer in a diversified portfolio. Nifty way to add some real estate exposure without the direct headaches.
Don’t get me wrong - I’m not dumping (whether Twain or Will Rogers - the apocryphal “Buy land, they’re not making any more of it” will never stop being true).
I always do my due diligence regardless of prevailing conditions, but debt loads are becoming a REAL problem in all areas of investing and - especially in the real estate realm, I’ve throttled back my ‘acceptable’ line for debt load substantially.
This is just one instance - a drop in the bucket (not even that) - but way too many stories like these popping up like rabbits.
The 450-unit apartment complex has been in default of a $170 million loan since early 2025..
The building’s assessed value of $93.1 million is significantly lower than the outstanding loan balance, highlighting the severe financial distress surrounding the asset.= X Denver’s assessed value is $93.1 million, or just 55% of its $170 million loan.
https://www.denverpost.com/2026/10/13/x-denver-apartments-caretaker-lawsuit/