1401 Elm Avoids Foreclosure—For Now

There was no white knight for the former First National Bank building at 1401 Elm, but the beleaguered redev received a reprieve from the threat of foreclosure after lenders didn’t go through with the planned sale, according to the Dallas Morning News.

The 52-story tower was scheduled for foreclosure after Olympic Property Partners withdrew from a deal with Dallas’ BDRC to redevelop the property. The original plan was to convert the long-vacant building to a mix of apartment homes, office space and shops. The City of Dallas had thrown in $50M of incentives to help finance it.

When Olympic Property Partners backed out, the lender scheduled the sale for Dec. 1 to protect a $53.5M investment.

BDRC had hoped to find a new partner in time to keep the $240M redevelopment project on track. In mid-November, BDRC president and CEO Bryan Dorsey told the Dallas Business Journal that several investors were interested in stepping in.

Though it does not appear a new partnership has been forged, the mortgage trustees didn’t go through with the sale. [DMN]

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