The 40-story Bryan Tower in Downtown Dallas is up for foreclosure auction a year after its owners first tried to put it up for sale, according to a report from the Dallas Morning News.
The paper reported Monday that the skyscraper's owners defaulted on a $70M debt to lenders and the building is slated for foreclosure auction sale on June 1.
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At the time of the foreclosure notice, the building owner still owed roughly $58M on its original note, according to CoStar data.
Even with mega-tenants like law firm Quilling, Selander, Lownds, Winslett & Moser P.C., the 1.1M SF office tower has a vacancy rate of 55.5%, according to CoStar Group. That is almost double what it was in the first quarter of 2019 when the vacancy rate stood at 26.9%, and the first quarter of last year when it came in at 28.9%, CoStar said.
The Downtown tower was built in 1972 and underwent extensive renovations in 2000 and 2015.
The property went up for sale with JLL as the listing broker last year, but it eventually fell into foreclosure as its occupancy rate declined throughout the past year and a half.
Built by Trammell Crow in 1972, the tower at 2001 Bryan St. sits at the foot of the Arts District and the Dallas Main Street Corridor.
As Bisnow reported in early 2020, longtime anchor tenant Baylor Healthcare previously made up 25% of the building's rentable square footage, but it vacated the building in August.
With law firms like Quilling as tenants, the future of legal office space in Downtown Dallas will play a big role in the building's future.
CoStar Group data shows 56 law firms, representing a total of 565K SF, with leases expiring in Downtown and Uptown Dallas between now and the end of 2023.
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