Wolfe Investments Slapped With Another Potential Foreclosure

Bluelofts and Wolfe Investments, the owners of the former home of the Fort Worth Star-Telegram at 307 West Seventh Street, are in imminent danger of losing the property.

B1Bank is looking to sell the loan on the 19-story building, which it described to the Dallas Business Journal as “sub-performing.”

The initial plan for the former home of the city’s newspaper was to convert the building into luxury apartments. Dallas-based Bluelofts and Plano-based Wolfe bought the old Oil & Gas building at 309 West Seventh Street next door with a similar vision, but WO&G Holdings, a company tied to Legacy Bank and Trust, took back possession of the historic Fort Worth site in 2024.

A good 62 percent chunk of the property still sits vacant, according to marketing material from Mission Capital. Initially, Baton Rouge, Louisiana-based B1Bank provided a $21 million loan to an entity tied to Wolfe to acquire the building, according to the outlet. The loan matured on April 28 of this year, and B1Bank is actively looking to sell the debt.

Kenny Wolfe, the head of Wolfe Investments, flew too close to the sun. A high-profile push into multifamily renovations saw the ambitious syndicator’s portfolio decimated in 2024. He was sued in separate lawsuits for defaulting on a $7.5 million loan for the 307 West Seventh Street property and $6.15 million for a building at 211 North Ervay Street.

In the lawsuit for the 211 North Ervay Street location, Wolfe was accused of using the $6.15 million to open a line of credit to snag the 309 West Seventh location. By the end of April 2024, Wolfe faced foreclosure filings on six properties, and had yet to successfully convert any of the former office space to residential units.

Currently, the largest tenant in the 307 West Seventh property is the U.S. Housing and Urban Development Department. Their lease will expire in 2035. The building’s winning bid could be selected as soon as today, according to the outlet. The high-rise, built in 1921, is valued by the Tarrant Appraisal District at $22 million.

— Hunter Cooke