Wednesday, June 17, 2009

Economy scuttles plans for billion-dollar complex near Galleria in Dallas

A prominent LBJ Freeway property that was planned for high-rise development is now posted for foreclosure.

The 15-acre tract next to the Galleria previously housed an automobile dealership.

Last year, developers announced plans for a $1 billion complex on the land that was to include office buildings, a hotel, condominiums and a shopping center. But the development was delayed because of the recession and building slowdown.

Now lender RMR Investments Inc. of California has filed for foreclosure on the property, seeking repayment of more than $18 million in debt, according to county records collected by Addison-based Foreclosure Listing Service.

The loan was made to a real estate partnership that owns the land, Woodmont TCI Group IX. Officials with Icon Partners, which proposed the big development, could not be reached Tuesday about the foreclosure filing.

The Icon Midtown project was one of the largest such developments ever proposed along LBJ Freeway.

The plans included 700,000 square feet of office space, a 200- to 300-room hotel, about 500 high-rise residential units and a shopping center.

With the credit crunch that has cut builders and investors off from financing, many developers and property owners have been unable to extend or replace real estate debt.

In a growing number of those cases, properties are then posted for foreclosure.
By STEVE BROWN / The Dallas Morning News