An iconic office building in downtown Dallas, once earmarked for residential development, is facing foreclosure.
A foreclosure auction is scheduled for February for the 18-story blue-paneled building at 211 North Arvey Street, the Dallas Business Journal reports.
Owner Wolf Investments received a $13.5 million loan from Thistle Creek Partners LP last April. The maturity date has been extended to Dec. 21, according to the foreclosure notice.
Thistle Creek has hired acting trustee H. Brandon Jones of Ellis Epich Schaefer Jones to handle the auction process, but it is possible Wolf and the lenders could reach a settlement before the auction.
The Dallas Central Appraisal District values the property at less than $12 million. Mr. Wolf planned to convert the building into his 238 apartments and use it as hotel rooms in the future.
Rashmi Mansabdar, a project manager at Wolf Investments, was not aware of the foreclosure posting as of Jan. 17. In December, he expressed optimism about the conversion project, saying the company was waiting for the green light to start.
The office building, designed by Thomas Stanley and built in 1958 by Leo Corrigan, had been vacant since 1995, but was renovated and reopened as offices in 2014.
The foreclosure auction is scheduled for Feb. 6 at the George Allen Courthouse Building downtown, the paper said.
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In Dallas-Fort Worth, foreclosures are on the rise after years of poor performance in the office sector. Rising interest rates, remote work trends, and cautious lenders have taken a toll on office landlords, causing many to surrender the keys to their lenders, sell their properties at deep discounts, or file foreclosure proceedings. I am forced to accept it.
A 12-story building in Uptown Dallas was foreclosed on last month after the owner defaulted on more than $14 million. Two office properties in Addison, about 25 miles north of downtown Dallas, also went into foreclosure recently.
—Quinn Donahue
