An iconic office building in downtown Dallas, once earmarked for a residential transformation, is facing foreclosure.
A February foreclosure auction has been scheduled for the 18-story, blue-paneled building at 211 North Ervay Street, the Dallas Business Journal reported.
Owner Wolfe Investments took out a $13.5 million loan from Thistle Creek Partners LP last April. The maturity date was extended to Dec. 21, according to the foreclosure notice.
Thistle Creek has enlisted substitute trustee H. Brandon Jones of Bonds Ellis Eppich Schafer Jones to handle the auction process, although it’s possible that Wolfe and the lender come to a resolution before auction.
The Dallas Central Appraisal District values the property at under $12 million. Wolfe had planned to convert the building into 238 apartments, with potential future use as hotel rooms.
Rashmi Mansabdar, a project manager for Wolfe Investments, was unaware of the foreclosure posting as of Jan. 17. In December, she expressed optimism about the conversion project, stating that the company had been waiting for the green light to commence.
The office building, designed by Thomas Stanley and built in 1958 by Leo Corrigan, underwent renovations in 2014, reopening as offices after being vacant since 1995.
The foreclosure auction is set for Feb. 6 at the George Allen Courts Building downtown, the outlet said.
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There’s been an uptick in foreclosures in Dallas-Fort Worth due to years of poor performance in the office sector. Higher interest rates, remote-work trends and wary lenders have wreaked havoc on office landlords, forcing many to hand the keys back to their lender, sell their assets at a steep discount or undergo foreclosure proceedings.
A 12-story building in Uptown Dallas went into foreclosure last month after the owner defaulted on more than $14 million. Two office properties in Addison, roughly 15 miles north of downtown Dallas, were also recently foreclosed.
—Quinn Donoghue