Lenders are threatening to foreclose on a downtown Dallas office building, the second foreclosure notice on the property in six months.
The midcentury 211 N. Ervay building was purchased early last year by an investor who planned to convert the blue high-rise into residential units.
But just months after the 66-year-old office building changed hands, the lender declared it in default on the mortgage and began foreclosure proceedings in August. The foreclosure was originally scheduled for September.
Plano-based Wolf Investments, the building's owners, said they are working on a new debt deal for the downtown tower.
But Utah-based lender Thistle Creek Partners is planning another foreclosure on the Dallas building next month.
According to the foreclosure filing, the building owner is behind on a $13.475 million loan.
In many cases, properties that are subject to foreclosure are not sold at monthly auctions. Borrowers and lenders often enter into new loan agreements to prevent forced sales.
Building owners face rising interest rates and stricter borrowing requirements from lenders. The 211 N. Ervay building is one of several Dallas-area office buildings threatened with forced sale by financiers.
