On September 9, 2026, Lurin Real Estate Holdings XLII, LLC filed a liquidating plan for its Elements on Third apartment property, following court approval of bidding procedures built around BDS IV Mortgage Capital J LLC’s $118.63 million credit bid. The proposed plan would transfer substantially all non-litigation assets to the highest bidder and establish a liquidating trust for remaining recoveries. It concerns the Elements debtor within LURIN’s jointly administered cases, rather than a platform-wide plan. Elements liquidating plan; bidding procedures order.
The economics turn on two separate questions: whether another buyer exceeds the lender’s credit bid, and what remains available for unsecured creditors. Under the proposal, the lender would contribute $50,000 to a liquidating trust and separately fund a $50,000 reserve for administering the liquidating debtor. It would also surrender distributions on its deficiency claim to qualifying outside unsecured creditors until those claims are paid in full. These are proposed contributions and distribution priorities, not completed payments or a guaranteed recovery percentage. Plan, definitions and Article IV.D.
This account reviews the Elements plan filed September 9 and the sale filings identified below. Approval of bidding procedures establishes a sale process; it does not establish that the sale has closed or that the plan has been confirmed.
Lurin Real Estate Holdings XLII, LLC, the Elements debtor, within the jointly administered LURIN cases
Court
U.S. Bankruptcy Court for the Southern District of Texas, Houston Division
Case Number
26-90344, jointly administered lead case
Petition Date
August 3, 2026, for the Elements debtor
Case Snapshot
The plan identifies the Elements debtor and its petition date; its caption identifies the jointly administered lead case. Elements liquidating plan.
Elements sale centers on a $118.63 million credit bid
The Elements debtor owns Elements on Third, a 431-unit apartment property in St. Petersburg, Florida. Its September disclosure statement reports approximately 93% occupancy at the petition date and says LURIN acquired the property in October 2021. The statement cautions that its historical background includes information the chief restructuring officer and professionals have not independently verified. Disclosure statement, Article II.
The court’s order entered September 1 approves BDS IV Mortgage Capital J LLC, called Bridge in the plan, as stalking horse bidder. The approved starting credit bid is $118,630,636.86. The order permits that amount to increase before an auction for additional amounts incurred or advanced under the loan documents, subject to a reasonable cap agreed by the lender and debtor. It also authorizes reimbursement of the lender’s actual transaction costs and expenses up to $300,000. Bidding procedures order, paragraph 9 and Exhibit 1.
The credit bid should not be read as cash proceeds available for distribution. The plan provides that Bridge would receive the property if its stalking horse bid succeeds; if another bidder succeeds, Bridge would instead receive sale proceeds under the plan’s treatment of its secured claim. Before closing a sale to Bridge, the lender must satisfy allowed senior other secured claims in full. Plan, Articles III.C and IV.C.
The disclosure statement identifies an original loan principal of $110 million and reports approximately $124.83 million of petition-date obligations inclusive of principal, interest, costs, fees and expenses, with additional accruals and advances described separately. Those debt figures serve a different purpose from the approved starting credit bid. Under the proposed plan, Bridge’s allowed secured claim would exclude default interest and late fees if the sale complies with the applicable milestones. Disclosure statement, capital structure; plan, Class 3 treatment.
What the liquidating plan offers unsecured creditors
The plan separates administration of the remaining debtor from the trust responsible for liquidating trust assets and distributing recoveries. The trust’s proposed assets include Bridge’s $50,000 contribution, unused committee professional-fee amounts within the carve-out, retained causes of action, and sale proceeds remaining after claims senior to general unsecured claims are paid in full. The separate $50,000 liquidating reserve funds administration of the liquidating debtor. Plan, defined terms.
Proposed provision
Consequence under the plan
General unsecured claims
Receive a pro rata share of available liquidating trust assets
Bridge deficiency claim
Distributions are surrendered to qualifying non-insider, non-affiliate unsecured creditors until those creditors are paid in full
Equity interests
Receive trust distributions only after allowed general unsecured claims are paid in full
Voting
Bridge’s loan claims, general unsecured claims and equity interests are classified as impaired and entitled to vote
Elements Plan’s Proposed Distribution Priorities
These provisions come from the plan’s classification and distribution terms. The deficiency-claim concession changes who receives available trust value first; it does not establish how much the trust will ultimately collect. Plan, Articles III and IV.D.
The approved sale calendar runs through December
The September 1 order sets the following Elements sale milestones, all in prevailing Central Time. It permits changes with the required notice and subject to the cash-collateral milestones and requirements. Bidding procedures order, paragraph 2.
Milestone
Date and time established by the order
Qualified bids due
November 17, 2026, at 5 p.m.
Auction, if applicable
December 3, 2026, at 10 a.m.
Sale objections due
December 8, 2026, at 5 p.m.
Sale hearing
December 15, 2026, at 9 a.m.
Elements Sale Milestones
The plan leaves the stalking horse bid subject to higher and better bids and contemplates approval of the successful transaction through the plan and confirmation order. A lender acquisition therefore remains one possible outcome of the proposed process. Plan, Article IV.C.
Fitzroy’s auction displaced Weidner as the leading bidder
A separate property sale has already moved beyond the $50 million Weidner stalking horse bid described in earlier coverage. The Fitzroy debtor’s August 4 notice reports that an August 3 auction produced a successful $51.85 million cash bid from JP Realty Holdings, LLC. Weidner Real Estate Holdings LLC was selected as backup bidder at $50 million. The notice identifies the seller as Lurin Real Estate Holdings LXV, LLC. Successful and backup bidder notice.
That notice sought approval of the JP Realty agreement at an August 17 hearing. It establishes the auction selection, but does not by itself establish subsequent approval or closing. The Fitzroy cash bids also should not be combined with the Elements credit bid as a measure of cash recovered across LURIN’s estates. Fitzroy bidder notice; Elements bidding procedures order.
Case documents and the remaining recovery question
Kroll Restructuring Administration LLC serves as claims and noticing agent. The Fitzroy notice identifies Kroll and directs readers to its case website for the agreements and other filings; the Elements plan also links to the case site. Fitzroy notice; Elements plan.
For Elements, the unresolved economic question is whether competitive bidding produces value beyond the lender’s proposed acquisition and whether the trust’s remaining assets generate meaningful unsecured recoveries. The proposed plan supplies a distribution structure and a limited lender contribution; the bidding outcome and realization of trust assets will determine what that structure can deliver. Elements plan.
Sources
Elements liquidating plan /documents/58542529-1306-48bb-9c58-42332b3342cc/
bidding procedures order /documents/4e30f608-d38f-4404-b351-8bc9c28e2a08/
Disclosure statement, Article II /documents/2e7a54de-31a5-4b4c-9761-57585ff9ee9f/
Successful and backup bidder notice /documents/8a34e0dd-0b99-4d83-813b-d3babefc31af/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.