Debt investors wound up big losers in downtown Dallas building sale
Dallas Morning News:
Bondholders who held the mortgages on downtown Dallas’ One Main Place office tower lost 70 percent of their investment in the property when it recently sold, according to a new report. The 32-story Main Street skyscraper was just acquired by New Orleans investor KFK Group. The 46-year-old office tower had been threatened with foreclosure since last May. A New York investor that purchased the building in 1998 defaulted on $63.3 million in publicly held debt on the landmark Dallas tower. KFK Group bought the troubled debt on the building for close to $25 million and then took ownership of the property at this month’s Dallas County foreclosure auction. Originally the building was valued at $94.5 million when the loans were made in 2005, according to a report from analysts at Trepp LLC. One Main Place is less than 50 percent leased and the new owners plan to renovate the office high-rise.
– –Steve Brown