A 33-story office tower in the Downtown Dallas Arts District could face a foreclosure auction after its owner allegedly defaulted on a loan.
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The 840K SF tower at 2100 Ross Ave. was flagged for foreclosure after its $79M loan was not paid off by the due date, The Dallas Morning News reported. The building is owned by a partnership affiliated with Woods Capital and its parent company, Pacific Elm Properties.
The building’s owners initially owed $98M, which was provided by Wells Fargo in 2016, according to The Real Deal. However, Fitch Ratings labeled the $79M debt tied to the high-rise as a nonperforming matured balloon loan earlier this year after it was not paid off in full or refinanced.
The property was valued at more than $99.4M this year by the Dallas Central Appraisal District.
The foreclosure could be averted if the owners are able to work out a deal with the lenders prior to the planned auction on Oct. 6.
Neither Woods Capital nor Pacific Elm Properties responded to Bisnow’s requests for comment on the matter.
The current owners purchased the more than 40-year-old building from a partnership overseen by Dallas businessman Tom Dundon after it was listed in 2019.
Dundon’s group had purchased the high-rise for $131M in 2015 from Atlanta-based Cousins Properties, which completed the most recent renovation of the building in 2014.
Cousins Properties bought the building out of foreclosure for $59M in 2012.
The tower is 53% occupied, according to reports filed in county court. Asset management firm Trigild IVL was named the appointed receiver for the building by a Dallas County court.
Y’all Street and demand for trophy office space have turned Uptown into one of the region's premier markets, leaving Downtown Dallas buildings like the tower at 2100 Ross Ave. lagging.
Downtown Dallas has also lost a number of major office users in recent years to Uptown and the metro’s northern suburbs. Insurance brokerage Lockton Cos. moved out of 2100 Ross Ave. this year after the company leased 100K SF at Victory Commons One in Victory Park and 50K SF at Granite Park Six in Plano.
Financial services firm Prudential then confirmed its plans to exit the building in July in favor of spaces at 23Springs in Uptown and the Trammell Crow Center in Downtown.
The highest-profile exit from Downtown Dallas came earlier this year when AT&T announced that it would move its global headquarters to a new corporate campus in Plano. The telecommunications titan plans to begin moving out of its current home in Whitacre Tower, which is owned by Pacific Elm Properties and Dundon Capital Partners, in the second half of 2028.
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