A protracted legal battle over a Galleria-area building may finally be coming to a head with the building set for sale under Chapter 11 bankruptcy proceedings.
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Hilco Real Estate is advertising the bankruptcy sale of the 285K SF building at 2425 W. Loop S., a building owned by an LLC tied to Jetall Capital and its CEO, Ali Choudhri.
The National Bank of Kuwait has moved multiple times to foreclose on the building, but action has been stalled by legal maneuvering. Jetall has so far managed to avoid foreclosure attempts on that building, as well as another at 1001 W. Loop S.
Hilco announced a June 14 deadline for qualifying bids on the building and plans to hold a sale confirmation hearing on July 8. When Bisnow asked if there is any potential this sale could be similarly blocked before completion, Hilco emailed the following statement:
“Hilco Real Estate Sales has no comment about the possible future outcomes of our bankruptcy sales. As always, we will put forth our very best effort for a successful transaction.”
When Choudhri spoke to Bisnow from 2425 W. Loop S. last summer, the LLC that owns 2425 had filed for Chapter 11 bankruptcy protection days earlier. He said he had helped “significantly" lease up the building since the pandemic, naming DC Partners as a full-floor tenant and citing ongoing negotiations.
Stage Stores, the owner of defunct off-price department stores including Palais Royal and Bealls, occupied almost 200K SF in the building but left a large vacancy when it declared bankruptcy and sold its assets in 2020.
Choudhri became involved in the ownership of the building in 2013. Ownership of the building switched in May 2018, though it remained tied to Choudhri, Bisnow previously reported. It was also in 2018 that the National Bank of Kuwait provided a $60.2M loan, according to a filing in the bankruptcy case.
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Hilco is conducting the bankruptcy sale by order of the U.S. Bankruptcy Court for the Southern District of Texas, the release announcing the sale says. It highlights that the 11-story office building was designed by renowned architect I.M. Pei, known for the Louvre Pyramid in Paris. The building sits just across Loop 610 from The Galleria, near the intersection with Westheimer Road.
Building amenities include an on-site café, six elevators, windows with panoramic views, secure 24-hour keycard access, a fitness center, recent renovations, an 11-story, open-air atrium lobby and a multilevel parking garage, the Hilco release says.
Interested bidders can find the requirements to participate in the bankruptcy sale process on the Hilco Real Estate Sales website.
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