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Fannie Mae foreclosure cases tied to Vesta Capital apartment portfolio
Fannie Mae has initiated foreclosure proceedings on eight properties in a portfolio of more than 9,000 units, while at least nine related holding companies have filed for bankruptcy.
Former apartment developer Marc Kulick, tied to Tulsa, Oklahoma multifamily firm Vesta Capital, is facing an escalating legal fight involving foreclosure actions, racketeering allegations, and disputes over control of more than 30 assets, according to Bisnow.
The dispute centers on Kulick’s reported default on high interest loans from Efraim Diveroli, the convicted former arms dealer who later placed second mortgages on properties in Vesta’s portfolio. Diveroli’s team replaced management at 10 Tulsa properties with assistance from local police, the story says, as foreclosure proceedings move ahead on at least nine properties.
Kulick’s former partners allege fraud, including claims that cash from Vesta Capital was used for a lavish lifestyle and gambling losses, while Kulick says he acted in good faith and is instead dealing with a hostile takeover. He is fighting Diveroli’s company, YSA Investments, in court for control of more than 30 assets, while former partners seek to force him out.
Bisnow reports that Fannie Mae initiated foreclosure proceedings on eight properties in the portfolio, which includes around 35 owned or managed properties totaling more than 9,000 units. The article also says that at least nine holding companies that own the apartments have filed for bankruptcy, and it traces one trigger to a steep rise in the firm’s master insurance costs, which Kulick says increased about 43% to 44% from 2023 to 2024 and left the company unable to secure traditional financing.