An iconic office building in Houston’s Energy Corridor is on the chopping block.
Gemini Rosemont could lose Kirkwood Tower to foreclosure, according to Roddy’s Foreclosure Listing Service. The firm allegedly defaulted on a $30.86 million loan for the 15-story office property cladded in black glass.
Gemini Rosemont purchased the property from Denver-based Amstar in 2014 with a loan from Iowa-based Voya Insurance, according to deed records.
The auction is scheduled for Feb. 4 at the Harris County Courthouse. The sale would be cancelled if the parties worked out an agreement in the meantime.
The property’s taxable value was $34.7 million last year, down from $41.6 million just three years earlier, according to appraisal district records.
Kirkwood Tower, at 11757 Katy Freeway, was built in 1984 and renovated in 2015. It spans 286,000 square feet and features a fitness center, rooftop jogging track and ground-floor deli.
The building is located along Interstate 10, about 17 miles west of downtown.
Commercial operators have been struggling to pay their floating-rate loans since interest rates started rising in 2022, increasing foreclosure rates across the country.
The situation is especially challenging in office markets where some of the older inventory is obsolete and not suitable for updates or conversion to other uses.
The vacancy rate in Houston’s office market was 25.7 percent in the fourth quarter, according to the Greater Houston Partnership. The city’s vacancy rate peaked at the end of 2022 at 28.2 percent.
The high vacancy rate translates to $1.56 billion in lost rental revenue each year, Bisnow reported, citing data from Cushman & Wakefield.
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