46 Philadelphia-Area Properties Are Hitting Auction Out of a Bankrupt REIT's Collapse

Forty six properties owned by RAD Diversified REIT, most of them rowhouses, single family houses and multifamily buildings in Philadelphia, with the rest in Chester and Delaware counties, are heading to a court-ordered auction, Bisnow and a PR Newswire release confirmed. Tranzon Alderfer is running the sale under the REIT's Chapter 11 bankruptcy, Case No. 8:26-bk-01636-CPM, in the U.S. Bankruptcy Court for the Middle District of Florida. Online bidding opened October 6, starting at $25,000 to $50,000 per property, and closes between October 13 and 15.

The SEC charged RAD in July 2025 with raising $152 million from more than 5,500 investors while misrepresenting performance and diverting at least $38.5 million to an entity the founders owned, according to Bisnow. Co-founder Brandon Mendenhall was indicted in May on one count of mail fraud. Every property is selling as is, with a 10% buyer's premium and the buyer picking up outstanding real estate taxes.

A fraud-driven forced sale behaves differently than a normal portfolio listing. These sellers are working against a bankruptcy court's calendar, and 46 properties closing in the same 72 hour window means some of them will trade under what they're actually worth. Investors who can move fast and run their own title and condition diligence in days instead of weeks have a real window here that a typical marketed portfolio never gives you.