Bridge loan
A lender advances most of the equity at closing; DST sales are supposed to take the lender out.
If the sponsor spends the proceeds elsewhere, the lender still has a claim on leftover equity, and sometimes argues it has a claim on sold interests too.
Why it shows up here: KHCA’s ~$56 million unpaid bridge on Vintage, Walk, One on 4th, and Hayworth sits senior to those DST holders. IBI Volcano is the Apex version: Crew’s LLC guaranty went to a 30 Sep 2025 money judgment.