Ares Commercial Real Estate is seeking foreclosure on a $127 million loan for a property located at Live Oak and Texas Streets in Dallas. The property, which includes the Gabriella apartments and a ground-floor Tom Thumb grocery store, was completed in 2020.
The loan was originally obtained through an affiliate of Greystar, the developer and builder. Despite the presence of Tom Thumb since its completion, negative rent growth has been observed for five out of six quarters at this location according to reports from Dallas Business Journal. This indicates that management has been unable to pass on increased costs such as property taxes and insurance to tenants.
Foreclosure proceedings are likely underway but renters should not expect any changes other than potential shifts in management.
