Coit Central Tower Adds to The Ranks of Foreclosures in Dallas, Texas

Coit Central Tower, a 13-storey office tower located in North Dallas with excess of 256,000 square feet has become the latest commercial property to become one of the thousands of Dallas foreclosure homes. Situated north of Forest Lane at 12001 North Central Expressway, it's one of those biggest commercial buildings expected to fall a prey to foreclosures.

George Roddy, president, Foreclosure Listing Service (Addison), which tracks Dallas foreclosure homes, among others, told he couldn't remember any office space of comparable size posted recently. He also hoped that this wouldn't be the beginning of the end for commercial building owners in Dallas-Fortworth areas.

The tower(having a less than 40% lease) is valued at $23 million for taxation purposes, while the original loan amount, given by Gramercy Warehouse Funding II LLC is $28.7 million, as per the filings. According to tax records of Dallas, the building's owner is an affiliate since April 2007 of real estate investor International Capital Partners of Scottsdale based in Arizona.

While officials with International Capital Partners were reluctant to comment on the fate of the building, it's to be noted that not all Dallas foreclosure homes are sold. It often happens that the lender and the borrower come to some agreement regarding the debt or delay the auction as and how required.

While over 25,000 residential properties have become Dallas foreclosure homes this year, comparatively not many commercial properties have come up so far. The first two quarters of 2008 saw less than 1000 commercial foreclosures which is quite less than Dallas foreclosure homes, as per Foreclosure Listing Service. But it's to be noted that this figure is up by 35% from the same period the previous year. Interestingly, most of these commercial Dallas foreclosures are very old from construction point of view.

Even though the present state of commercial real estate is not too alarming, the situation in the days to come might be quite grim. Real estate analysts fear that the escalating credit crunch might make some building owners inadequate to refinance properties and force them to face loan defaults, adding their properties to the bulging group of Dallas foreclosure homes.

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