Will embattled real estate investor Ali Choudhri finally lose control of a Galleria-area office building that’s been in financial turmoil for the past year?
A bankruptcy sale has been scheduled for the 285,000-square-foot building at 2425 West Loop South, owned by an LLC linked to Choudhri’s firm, Jetall Capital, Bisnow reported. The U.S. Bankruptcy Court for the Southern District of Texas has ordered Hilco Real Estate to conduct the sale.
The National Bank of Kuwait has attempted to foreclose on the building, but those efforts have been delayed by Choudhri’s legal tactics. Despite the bank’s persistent foreclosure attempts, Jetall has managed to stave them off for 2425 West Loop and another office building, at 1001 West Loop South.
Hilco has set a June 14 deadline for qualifying bids and plans to hold a sale confirmation hearing on July 8. When asked about the possibility of the sale being blocked, Hilco declined to comment, stating it would make its best effort for a successful transaction.
Choudhri, speaking on 2425 West Loop last summer, said the ownership LLC had filed for Chapter 11 bankruptcy protection. He also noted significant leasing progress since the pandemic, with DC Partners becoming a full-floor tenant. The building previously housed Stage Stores, which left a huge vacancy after the company folded in 2020.
Choudhri has been involved with the building since 2013. Ownership formally changed in 2018 but remained associated with Choudhri. That same year, the National Bank of Kuwait issued a $60.2 million loan, the outlet reported, citing court filings.
The 11-story office building, built in the 1980s, is located near the Galleria shopping center and features amenities such as an on-site café, a fitness center and a parking garage. The building also received several renovations in recent years.
—Quinn Donoghue
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