Investor loses 3,200 apartment units in foreclosure #shorts

Applesway Investment Group borrowed $230 million to purchase four Houston apartment complexes composed of 3,200 apartments around the second half of 2021 before the Fed rate hikes began. Now, Arbor Realty Trust, which is a publicly traded mortgage company, has foreclosed on the properties because Applesway defaulted on the loan.
Commercial property is taking a tumbling. The financial crisis has spread from urban offices and shopping malls to multifamily housing at this point. I’m wondering if this will cause contagion and perhaps impact single family homes? Multifamily apartment buildings have been considered a safe investment for decades. When home prices exploded, it forced a lot of potential home buyers to keep renting. Some landlords made the wrong call when they assumed rents would continue rising at breakneck speed. What is even worse for some of these investors is they made the mistake of using floating-rate mortgages. Those loans have now reset at higher rates. Appleway’s interest rate went from 3.4% to 8%, so they would have been paying more than double in financing costs.
Works Cited:
https://www.wsj.com/articles/houston-apartment-owner-loses-3-200-units-to-foreclosure-as-multifamily-feels-the-heat-fb3d0e75?mod=hp_lead_pos10