Another vintage office building is on the chopping block as commercial foreclosures rise in the Lone Star State.
Parkway Office Center North, at 14180 Dallas Parkway in the north Dallas suburb of Addison, is facing foreclosure after owner APEX Pacific Partners Advisors defaulted on a $21.9 million mortgage, according to data from Roddy’s Foreclosure Listing Service.
When APEX bought the property in 2017, it secured a loan from Union Fidelity Life Insurance Company.
The foreclosure auction is scheduled for 10 a.m. Sept. 3 at the Dallas County Courthouse. It’s possible the sale is avoided if the owner and lender work out a solution before the auction date.
The property consists of two nine-story buildings that were constructed in 1982 and 1983. Both are about 115,000 square feet. They were renovated in 2019, according to LoopNet.
The property is valued at $16.14 million, appraisal district records show. That’s a 33 percent reduction from its 2023 appraised value of $24.25 million.
Since interest rates started increasing, some commercial operators have been unable to pay their floating rate loans. As a result, commercial foreclosures are on the rise in Texas.
In ATTOM’s latest foreclosure report, Texas ranks second in the nation for commercial foreclosures, behind California. In June, there were 70 commercial foreclosures in the Lone Star State — a 100 percent increase from the same month last year.
The situation is especially challenging in the office market where some of the older inventory is obsolete and not suitable for updates or conversion to another use.
APEX Pacific Partners Advisors is a real estate investor based in Los Angeles and Dallas. It’s a joint venture between Cardinal GenPar and Pilot Capital Investments. Subash Kolluru is the principal of Cardinal, and Rei Umekubo is the principal of Pilot.
APEX also owns properties in Denver and Los Angeles, according to its website.
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