Ares Commercial Real Estate has initiated foreclosure proceedings for a $127 million loan on 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 developed by Greystar’s affiliate.
Completed in 2020, the property has been operating with the Tom Thumb store since then. However, if foreclosure is pursued, it is unlikely to result in any changes for current renters except for a change in management.
According to reports from the Dallas Business Journal , there have been negative rent growth rates at this location for five out of six quarters due to difficulties passing on increased taxes and insurance costs to tenants.
