LH Press Library
North Texas Still Battling Foreclosures
GlobeSt.com, By Connie Gore
May 18, 2004
DALLAS-Three multifamily complexes with 927 units have hit the June auction roster as calls for commercial foreclosures of all product type rise above 100 properties for the ninth consecutive month in North Texas.
Two of the three notes exceed $20 million each, George Roddy Sr., president of Foreclosure Listing Service Inc. in Addison, tells GlobeSt.com. Twenty-three buildings with 383 units in an 18-property portfolio, assembled by Glo Holdings Ltd. of Dallas about six years ago, has made the June list in a call by lender W2001 MHL Realty, on a $21-million note for holdings along Gaston Avenue and Beacon Street in East Dallas, Roddy says. The same lender called a note for the 208-unit Parkview Legends, built in 1998 at 1701 Park Central Dr. in McKinney, a Denton County suburb north of Dallas while another has started foreclosure for a $20.8-million note against Houston owner, Royal St. Moritz Ltd., for a 336-unit development, also 1998 construction, at 2050 Grayson Dr. in Tarrant County's Grapevine.
"In recent memory, this $40 million plus on two apartments is one of the most significant months we've had," Roddy says of numbers that showed 23 multifamily properties were facing foreclosure. "It's probably not over yet." The fallout is indicative of the market's meltdown from occupancies bolstered by concessions and continued flat rents, he explains.
Overall, the June posting of 109 properties is up 16% over midyear 2003 and down by 42 notices in the past two months. "Certain income properties have been hit harder than others," he says, citing hotel/motel assets as the continued problem area for the region. Another seven are headed to the June auction block.
As for the office sector, trouble flags could begin to go up if capital costs rise and occupancies do not. Roddy cautions it's only a matter of time before owners get tired of digging into their pockets to support 72% or lower occupancies. "The chances are some are going to the foreclosure block in the next six months," says the market watcher for Collin, Dallas, Denton, Rockwall and Tarrant counties.
According to Roddy's count, Tarrant County led the pack with a midyear of 319 or 44% and Dallas came in second with 276 notices, both leaders when it comes to inventory. Overall, the midyear numbers showed 726 properties were posted versus 634 notices placed in the first six months of 2003 and 482 postings tacked up two years ago.
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