RAD Diversified REIT and four affiliates are in the fourth month of a jointly administered Chapter 11 case in the Middle District of Florida (Judge Catherine Peek McEwen), operating under cash-collateral authority while running a property-by-property Section 363 sale process and defending a wave of stay-relief motions now set for a three-day September 2026 trial. Voluntary PetitionsDkt. 1
The debtors—a Florida-based REIT and its affiliated funds holding more than 300 residential rental properties across Pennsylvania, Texas, Florida, and New Jersey, with capital raised from over 5,000 investors—filed on March 1, 2026 after a loss of access to capital that followed an SEC halt on RAD REIT's fundraising in February 2024, a July 2025 Florida Attorney General subpoena that publicly characterized the operations as a potential Ponzi scheme, a civil RICO action, and a May 2025 eviction from their Tampa headquarters. CRO DeclarationDkt. 3 Case Management SummaryDkt. 10 Independent Director Michael Roye authorized the filings, and CRO Katie S. Goodman of GGG Partners controls the restructuring, with KapilaMukamal providing forensic accounting and Epiq serving as claims and noticing agent for an estimated 7,500-plus claimants.
The capital stack carries no single quantified debt figure but four fragmented layers: property-level first-lien mortgages serviced by more than a dozen servicers, investor secured promissory notes that the CRO reports are largely unperfected because no recorded mortgages evidence the purported liens, investor unsecured notes, and joint-venture interests. The debtors have operated since the petition date on cash-collateral authority under their emergency motion, supplemented repeatedly with updated budgets and post-petition rent and expense schedules through at least mid-April 2026.
The restructuring is advancing through parcel-level sales: by late June 2026 the court had entered free-and-clear confirmation orders for properties including 40 Walnut Lane in Clementon, NJ, 1008 Snyder Avenue in Philadelphia, 144 Barrington Dr. in Brandon, FL, and 264 Van Gogh Circle in Brandon, FL. Sale Order, 144 Barrington Dr.Dkt. 699 Sale Order, 264 Van Gogh CircleDkt. 700 Contested matters are converging on the docket—an agreed stay-relief order has already granted Wilmington Savings Fund Society in rem relief as to a Cypress, Texas property—and the court has scheduled a three-day trial beginning September 28, 2026 to resolve 15 pending stay-relief motions, with a final pretrial conference set for August 26, 2026. Agreed Stay-Relief OrderDkt. 705 Trial Scheduling OrderDkt. 707
