General Information

KeyCity Capital is a financial services / private equity firm that focuses primarily on real estate and alternative investments. Their model emphasizes asset-backed, cash-flowing investments, particularly in single-family and multifamily real estate, as well as “build-for-rent” communities. They try to operate “vertically integrated” — i.e. they not only acquire properties but also manage and renovate them through in-house construction and property management arms. Their target markets include properties in A, B, and C class tiers in landlord-friendly U.S. markets.

Headquarters

Southlake
Texas

Leadership

Tie Lasater (CEO)
Boone Lasater (CFO)

Funds Management

They manage funds under the “KCAP RE” umbrella. For example, KCAP RE Fund XII is one of their active funds.

website statement

Their website states that they serve accredited investors only (i.e. individuals or entities meeting legal thresholds for income/net worth).

Foreclosure List

Lawsuit

News

About KeyCity Capital, LLC

KeyCity Capital, LLC (hereafter “KeyCity”) is a Texas-based private equity firm specializing in asset-backed alternative investments and real-estate funds. Their website describes them as “values-based, growth-oriented … built on the principles of integrity, trust, and communication.” Lasater Capital+1
Headquarters: 1211 S White Chapel Blvd, Southlake, TX 76092 Lasater Capital+1

Focus: Value-add single-family and multifamily real estate properties in “landlord-friendly” U.S. markets. perenews.com+1
Team:Tie Lasater – Chief Executive Officer (Managing Partner) Lasater Capital+1

Boone Lasater – Chief Financial Officer (Managing Partner) Lasater Capital+1

According to marketing materials, KeyCity claims a track record of “Zero Investment Losses in 13 Years” and an average IRR ~23% across realized investments.

https://lrlfinancial.substack.com/p/key-city-clowns

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Key City Capital Overview

KeyCity Capital, LLC is a Texas-based private equity firm led by CEO Tie Lasater and CFO Boone Lasater. Operating under the “KCAP RE” fund umbrella, the firm targets accredited investors seeking exposure to asset-backed real estate in landlord-friendly U.S. markets. The company describes itself as “values-based, growth-oriented” and claims a 13-year track record with zero investment losses and an average IRR of approximately 23%. KeyCity operates a vertically integrated model — acquiring, managing, and renovating single-family and multifamily properties through in-house teams across A, B, and C class market tiers.

The firm focuses on value-add single-family and multifamily real estate properties in “landlord-friendly” U.S. markets.

According to marketing materials, KeyCity claims a track record of “Zero Investment Losses in 13 Years” and an average IRR of approximately 23% across realized investments.

Despite marketing claims of zero losses and 20 percent plus returns, Lasater Capital and former firm KeyCity Capital has suffered through a series of catastrophic financial events to include foreclosures, bankruptcies, receiverships, and judgements that has resulted in hundreds of millions of dollars of property losses and tens of millions if not more of investor capital losses.

Despite marketing claims of zero losses, KeyCity Capital has experienced a series of significant property foreclosures. Their largest asset — a 1,240-unit apartment portfolio in Memphis — was foreclosed on by Arbor Realty Trust after KeyCity defaulted on $84.33 million in loans. The property sold at auction for only $42 million, resulting in investor capital losses estimated above $30 million against a projected project cost of approximately $106 million. In August 2025, two additional Texas properties were lost to foreclosure: Joshua Landing (100 units, Joshua TX) and Canyon Village (145 units, Bryan TX). Prior to the Canyon Village foreclosure, KeyCity had failed to pay over $18,000 in city utility bills and faced multiple public hearings for code violations including rat infestations and black mold. Following the Canyon Village foreclosure, Houston-based Better World Properties assumed management of the property.

KeyCity Capital and its managing partner Tie Lasater face substantial legal exposure from multiple directions. In late 2025, investors in the Joshua Landing project filed a lawsuit alleging fraudulent misrepresentation of the project’s financial condition and the firm’s overall investment track record — with one investor alone reporting losses exceeding $1 million. Separately, the lender for Meadows at Ferguson — a 264-unit Dallas complex — secured a $24 million default judgement against Tie and Shiloh Boone Lasater personally after describing the property’s physical condition as “disastrous.” In July 2024, the City of Dallas filed a petition against KCAP Meadows at Ferguson LLC citing over 50 code violations and 20 fire violations. After KeyCity failed to comply with a court-approved repair agreement, the property was placed under receivership.

Also in August of 2025, KeyCity lost a 145-unit complex called Canyon Village located in Bryan, Texas to foreclosure. Following the foreclosure, Houston-based Better World Properties took over management responsibilities, replacing the Dallas-based KeyCity Capital.

Operational Failures: Prior to the foreclosure, KeyCity Capital faced significant scrutiny for operational issues at Canyon Village, including:

Unpaid Utilities: In early 2025, the City of Bryan issued a water and sewage shutoff notice because KeyCity had not paid a balance of more than $18,000.
Code Violations: The property was subject to multiple public hearings in 2025 due to unsafe and deteriorating living conditions, including reports of rat infestations, black mold, and persistent maintenance neglect

Despite public claims of zero investor losses, Lasater Capital and its predecessor KeyCity Capital have experienced a series of significant property foreclosures across Texas and beyond. Their largest asset — a 1,240-unit apartment portfolio in Memphis, Tennessee — was foreclosed on by Arbor Realty Trust after KeyCity defaulted on loans totaling $84.33 million. The property sold at auction for only $42 million, representing estimated investor capital losses exceeding $30 million against a projected total project cost of approximately $106 million. In August 2025, two additional Texas properties were lost to foreclosure: Joshua Landing, a 100-unit new construction project in Joshua, TX, and Canyon Village, a 145-unit complex in Bryan, TX. Prior to the Canyon Village foreclosure, KeyCity had failed to pay over $18,000 in city utility bills and faced multiple public hearings for serious code violations including rat infestations, black mold, and persistent maintenance neglect. Following the foreclosure, Houston-based Better World Properties assumed management of Canyon Village.

The Meadows which is a 264-unit complex in Dallas was acquired for a purchase price of $30m in 2023 at a reported occupancy of 93%. Presently, the complex remains in severe disrepair. Reports indicate persistent issues including holes in units, rodent infestations, crime, and debris from a building torn down in 2024 that remained on-site for months. In July 2024, the City of Dallas filed a petition against KCAP Meadows at Ferguson, LLC (KeyCity’s holding entity), citing over 50 code violations and 20 fire violations. In October 2024, the city and owners entered a “Rule 11” agreement requiring specific repairs, such as removing rubble and graffiti, to avoid a court-ordered receivership. Unfortunately, KeyCity was unable to comply with this agreement and the property is now under receivership.

More recently, in order to avoid further foreclosures, Lasater Capital aka KeyCity has filed several Chapter 11 bankruptcy petitions. As of January 2026, the following KeyCity-affiliated entities have filed for bankruptcy:

KCAP Dominik LLC: Filed for Chapter 11 on December 3, 2025. This entity owns The Dominik Apartments in College Station, Texas.
KCAP Villa Gardens LLC: Filed for Chapter 11 on November 19, 2025 (Case No. 4:25-bk-44520).
KCAP RE Fund II LLC: Reported to have filed for Chapter 11 reorganization around December 2025

Despite these failures, both Tie and Shiloh Boone Lasater live in lavish multi-million dollar homes allegedly financed in part with investor capital and drive luxury vehicles to include a Rolls Royce and Bentley.

1400 Fountain Grass Ct, Westlake, Texas 76262.

https://www.zillow.com/homedetails/1400-Fountain-Grass-Ct-Westlake-TX-76262/70552429_zpid/

351 S. White Chapel Blvd. Southlake, Texas 76092

https://www.realtor.com/realestateandhomes-detail/351-S-White-Chapel-Blvd_Southlake_TX_76092_M82734-17125