Monday, December 10, 2012

Sale of Dallas’ City Lights project is OK’d by court order

Sale of the stalled City Lights project just east of downtown Dallas is moving ahead.
One of the country’s largest apartment developers has gotten the green light to buy the property along Live Oak Street thanks to a bankruptcy court order.
But there is still an opportunity for other purchasers to make a last-minute bid for the 6-acre development site.
South Carolina-based Greystar previously signed a contract to pay $15 million for the vacant City Lights land.
The U.S. Northern District Bankruptcy Court has agreed to look at competing bids for 60 days. But the court also said “the debtor’s determination that the contract constitutes the highest and best offer for the property is a valid and sound exercise.”
Matt Malouf, the general partner of the real estate firms that control the City Lights property, said Wednesday that he expects the sale to take place sometime in February.
The landowners have been working since 2004 to develop the high-profile tract.
Earlier plans for the City Lights development included a combination of apartments, condominiums and commercial buildings.
If Greystar goes ahead with its purchase, most of the property is likely to be used for urban-style apartments.
Greystar manages or owns more than 190,000 apartments in 20 U.S. markets The company represents more than 50 apartment communities in the Dallas area.
Greystar representatives did not respond to a request for details.
Landowner Margaux City Lights Partners Ltd. put the Live Oak tract under Chapter 11 protection in September. The lead partners in the project said the bankruptcy filing was made to settle disputes between the investors in the property.
The City Lights land is just two blocks from a DART light-rail station and a block east of downtown Dallas.
The tract was previously occupied by a jumble of old commercial buildings, which have been demolished over the years.
By STEVE BROWN Real Estate Editor