Investors Eyeballing 1401 Elm, But No Takers So Far
Potential white knight investors are eyeing the renovation project at 1401 Elm, but no rescue is imminent.
Todd Interests, Centurion American Development, Matthews Southwest and Woods Capital have all flirted with the possibility of investing, but so far no takers have come forward, reports the Dallas Morning News. All those companies have experience converting old Dallas buildings to new uses.
A $240M development deal to convert the more than 1M SF office tower into apartments, a hotel, office space and shops hit the brakes after Olympic Property Partners, a partner in the deal, backed out and the building went into default.
In early December, a foreclosure was scheduled but the mortgage lender declined to go ahead with the sale.
Since then, investors in the project, including the City of Dallas, which kicked in $50M, have been hearing from potential partners to help finish the project. Construction has stopped as two contractors working on the building have filed liens against the property due to non-payment. [DMN]