Merchants Capital and Merchants Bank of Indiana have filed foreclosure actions against three Indiana properties owned by Israeli-founded real estate firm Valore, adding it to a growing list of leveraged US ventures hit by high rates.
Two American lenders filed foreclosure actions against three Indiana properties owned by Valore, an Israeli-founded real estate firm run by Roei Maudi, after the company missed loan payments on its leveraged US multifamily portfolio. Valore now joins Rilco Investments and Vision & Beyond as Israeli-led US property ventures strained by high interest rates.
Which Valore properties are in foreclosure
Merchants Capital Corp and Merchants Bank of Indiana began foreclosure proceedings against three Valore-linked properties in Evansville and Indianapolis, according to a report by Calcalist. The three properties carry a combined estimated value of roughly 28 million dollars. A fourth property, valued at about 10 million dollars, is also at risk after its lender froze funds generated by the asset amid a separate dispute with Valore.
Why Valore missed its loan payments
Valore combined investor equity with bank leverage to acquire US multifamily rental housing, a structure common among Israeli sponsors selling US property investments to Israeli clients. Interest rate increases starting in 2022 raised borrowing costs across the sector while pushing down property valuations, Calcalist reported. Refinancing and sale proceeds that Valore had counted on failed to materialize, leaving the leveraged properties exposed to lender action.
Roei Maudi has called the situation part of a broader financing crisis facing leveraged multifamily investors across the United States, not a problem specific to Valore's underwriting.
How the Valore case compares to other Israeli real estate failures in the US
Rilco Investments sold an Ohio office building for 2 million dollars in 2026, five years after buying it for 17 million dollars, with additional properties expected to sell at a loss as Israeli investors organized to recover capital. Calcalist's report on Rilco's Ohio sale found dozens of investors organizing after the price collapse became public.
Vision & Beyond, an Israeli-founded firm focused on Cincinnati-area properties, collapsed after investors said the company withheld disclosure of bank foreclosures on their properties. CTech's investigation into Vision & Beyond found ownership of some assets had been transferred to the company itself before it used the properties as collateral for additional borrowing.
What the foreclosures mean for Valore's investors
Valore lists hundreds of investors and, according to its own website, assets valued at roughly 330 million dollars, nearly one billion shekels. The Indiana foreclosures affect a small share of that portfolio directly, but the pattern matches a structural risk across the sector: high leverage, dependence on continued low rates for refinancing, and limited investor visibility into loan status once a property goes into default.
Israeli qualified investors in US real estate partnerships typically fall outside the direct oversight of Israel's securities regulator, since the funds are structured on the premise that investors have the sophistication to evaluate risk without a prospectus. That structure has left investors in Rilco, Vision & Beyond, and now Valore dependent on lender disclosures and company statements for updates on their holdings.
