The high-rise owner said it is “working diligently with its lenders to resolve this issue.”
Dallas — Editor’s note: This article Article published in the Dallas Business Journal.
An eye-catching high-rise in Uptown’s popular West Village neighborhood is undergoing a $15 million renovation, but at the same time, it is facing threats of foreclosure from its lender.
Houston-based apartment developer Bello Sade announced on June 12 that it has completed renovations on 3700M, a 21-story, 381-unit building at 3700 McKinney Avenue.
But a June 10 notice filed with Dallas County shows the property is scheduled for foreclosure auction on July 2, raising questions about what will happen next. The two sides could reach an agreement by July 2 or the auction could be postponed.
PHOTOS: Uptown high-rise gets $15M makeover, lender threatens foreclosure
Since acquiring the building two years ago, Bello Sadeh has “invested significant capital into positioning this asset as one of the best in the Dallas multifamily market,” Bello Sadeh co-founder Dan Basikis said in a statement. “We are committed to maintaining ownership of the property and have been working diligently with our lenders for several months to resolve this issue.”
According to Dallas County records, a limited liability company linked to Bello Sade acquired the building from an affiliate of Brookfield Properties in February 2022. At the time, the company received a $121.5 million loan from Coram Financial Inc., according to a deed of trust filed with the county.
Corum Financial was an affiliate of Credit Suisse Group AG before UBS bought Credit Suisse last year.
The foreclosure notice lists MF1 REIT II-A LLC as the current noteholder, but filings with the Securities and Exchange Commission show that the company is an investment firm with ties to Boston-based Berkshire Residential Investments.
Attempts to reach the lenders and the trustee for comment were unsuccessful.
The Dallas Central Appraisal District values the apartments at $125 million, excluding the building’s retail portion. The apartments were built in 2013, according to DCAD records.
A representative for Vero Sade said the building cost $15 million to renovate.
Vero Sade’s vision for the land
The complex marks the first time in Dallas that the company’s “Club Living” concept has been adopted, which aims to bring the energy of a social club to an apartment complex with upscale design and programming like chef demonstrations and fitness classes. The new space was designed by Philadelphia-based Good City Studio, which has also designed the private club.
“Vero Sade’s club living concept aims to reimagine traditional apartment living through upscale, thoughtful design and purposeful programming, elements of which are intended to encourage interaction, relationship building and ultimately community among residents,” Basikis said.
The units include studio, one- and two-bedroom apartments, ranging in size from 562 to 1,475 square feet. Some will be for short-term rentals. Units available on Apartment.com range in price from about $1,800 to $4,200.
The seventh floor will feature a 6,700-square-foot amenity center with city views, a rooftop pool, yoga studio and fitness center, while the first floor will feature event space and co-working space with private offices available for rent.
Other real estate investors are also taking notice of the West Village’s popularity: Los Angeles-based CIM Group recently sold The Lenox at West Village, a 159-unit apartment complex built over retail space, next door to the Vero Sade property.
