Greystar faces foreclosure on apartments near Dallas crane collapse

$127M mortgage issued in 2022 by New York lender

Greystar Faces Foreclosure on Apartments Near Crane Collapse
Greystar's Bob Faith and The Gabriella in Dallas (The Gabriella Dallas, Greystar)

The country’s largest apartment manager is facing foreclosure on a Dallas apartment building. 

Greystar Real Estate Partners took out a $127 million mortgage from a New York-based lender on the 378-unit Gabriella, Dallas Morning News reported. The debt was provided in early 2022. Greystar developed the Gabriella, off of Live Oak Street in East Dallas, which opened in 2020. 

Ares Management scheduled the foreclosure hearing for Feb. 6. Ares directed a trustee “to foreclose the lien” on the tower, according to legal filings. It’s possible that the lender and borrower will come to a resolution before the scheduled auction. 

The loan comes to almost $336,000 per unit.

The apartment complex pulls in top rents; a studio is being advertised for almost $1,500. Amenities include an infinity edge pool, a golf simulator and a fitness club.

It is next door to the former Elan City Lights apartments, where a construction crane collapsed during a 2019 storm, killing a 29-year-old resident, Kiersten Smith. A jury awarded her family $860 million in damages in their lawsuit against Greystar, which was found liable for the accident. 

South Carolina-based Greystar is the largest apartment manager in the country with almost 727,000 units, according to the National Multifamily Housing Council. The international real estate company has 66 offices worldwide. 

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In June, the developer listed the Ascent, a 23-story apartment building in Victory Park. The property is located at 2588 North Houston Street and was developed by Greystar in 2017. 

Dallas commercial real estate has experienced a recent uptick in foreclosures. But they’ve mostly affected the office sector, which has been ravaged by rising interest rates and the proliferation of remote work. 

A February foreclosure auction is scheduled for an office building at 211 North Ervay Street. Thistle Creek Investments loaned owner Wolfe Investments $13.5 million last April. Per the foreclosure notice, the maturity date was extended to Dec. 21. Wolfe had planned to convert the building into 238 apartment units. 

A 12-story office building in Uptown went into foreclosure in December after the ower defaulted on a $14 million loan that matured on Oct. 1. Two Addison properties, both on North Dallas Parkway, also went into foreclosure late last year. 

—Jess Hardin

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