The 18-story blue-paneled office building at 211 N. Ervay St. sold for $8 million at auction Feb. 6.
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A downtown Dallas high-rise was sold at a foreclosure auction for just $8 million to a financier, who still hopes to follow the previous owner's wishes and convert the building from offices to apartments or a hotel. There is.
The 18-story blue-paneled office building at 211 N. Ervay St. will be auctioned Feb. 6 by the property's lender, Thistle Creek Capital LLC, a Lehi, Utah-based real estate investment fund. was sold to an affiliate of for $8 million. According to Dallas County deed records.
Ben Peterson, a partner at Thistle Creek Capital, told the Dallas Business Journal the company plans to continue redeveloping the building for new uses.
“I think the best use for this building is a conversion from office to some type of apartment or hospitality, which is happening a lot across the country,” Peterson said, noting that Dallas is one of the few countries in the country to see such a conversion. He added that it is one of the top markets in the world. This is shown in the Yardi Matrix data recently reported by RentCafe.
“You know, there's a lot of excess office commercial space in downtown Dallas and other places, so we're trying to find the right home for that building, the right person to develop the project, or the right partner. Interested in finding out/or just looking for a sale.”
The foreclosure includes an entity affiliated with the previous owner, Plano-based Wolf Investments LLC, who worked with Thistle Creek when Thistle Creek purchased the building last April, according to the foreclosure notice. This included a $13.5 million loan taken out. The notice stated that the maturity date of the loan has been extended to December 21, 2023.
A representative for Wolf Investments declined to comment.
This wasn't the first time the property was listed for potential foreclosure sale. Wolf Investments sued Thistle Creek in Dallas County District Court on Sept. 1, alleging the lender failed to provide adequate notice before offering the property for the county's Sept. 5 foreclosure sale. Thistle Creek withdrew its foreclosure notice on the same day Wolfe's complaint was filed. .
In December, Niraj Shah of Priya Capital LLC similarly filed a lawsuit in Dallas County after Wolf defaulted on a $6 million short-term loan Shah made to help complete the acquisition of 211 N. Arvey Co. He sued Wolf Investment Co. in district court. Rather than closing on the Arvey property, Wolf used the loan proceeds to open a line of credit with a bank to finance an oil and gas building in downtown Fort Worth, according to the report. The building was purchased by Wolf in May 2023 in partnership with Blue Loft. some reports.
Thistle Creek isn't the only company seeing potential in converting downtown Dallas office buildings into apartments, hotels and other uses.
Dallas-based Woods Capital recently completed construction on a 228-apartment addition to Santander Tower. Woods Capital is also adding residential space in its 40-story Bryan Tower, and Todd Interests is converting the upper floors of its 49-story Energy Plaza skyscraper into 294 residential units, Dallas said.・Morning News reported.
As of December, Wolf Investments had plans to soon begin converting the former office space into 238 apartments, and was also considering plans to later turn those residences into hotel rooms.
The office building was designed by Thomas Stanley and constructed in 1958 by developer Leo Corrigan. The building had been vacant since 1995, but after a multi-million dollar renovation, it reopened as an office in 2014.
