(Source: Steve Brown The Dallas Morning News (MCT) – A Denver real estate investor said Wednesday that it has foreclosed on part of the debt on one of Dallas’ biggest office towers.
Dividend Capital Total Realty Trust said that is has foreclosed on a $20 million loan it held on the 60-story Comerica Bank Tower at 1717 Main Street.
The primary mortgage on the 1.5 million square foot skyscraper has been handled by special debt servicers since last spring.
Dividend Capital said that it is now the 100 percent owner of the titleholder of the office tower since it foreclosed on its non-performing mezzanine loan.
“We intend to engage the mortgage note lender in negotiations to modify the terms of the senior loan agreement,” Dividend Capital said in filings with the U.S. Securities and Exchange Commission. “The results of such negotiations with the senior lender will materially impact our ability to own and operate Comerica Bank Tower.”
That $180 million mortgage is set to come due in 2017.
Since 2006, New York-based Metropolitan Real Estate Investors LLC has owned the Comerica Bank Tower. Metropolitan Real Estate Investors had previously requested modifications of the debt with bondholders.
Several tenants in the building – including Energy Future Holdings, TM Advertising and EmCare Inc. – have either moved from the building or announced plans to relocate.
Built in 1987, the pink granite high-rise was designed by award winning architects Philip Johnson and John Burgee as the home for Dallas banking firm MCorp. The tower also for some time housed the regional operations for Bank One.
In 2007 Comerica Bank relocated its headquarters to the tower.
Dividend Capital Total Realty Trust has been in business since 2005 and owns a portfolio of real estate and debt on properties including offices, industrial buildings and retail. AT the end of 2011 the company had $2.8 billion in investments.
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Source: Steve Brown The Dallas Morning News (MCT)
