Ares Commercial Real Estate has initiated foreclosure proceedings on a $127 million loan for a property located at Live Oak and Texas Streets in Dallas. The property consists of the Gabriella apartments and a ground-floor Tom Thumb grocery store.
The loan was originally obtained by Greystar, the developer and builder’s affiliate. Completed in 2020, the Tom Thumb store has been operational since then. In case of foreclosure, there will likely be no impact on current renters except for a change in management.
According to reports from Dallas Business Journal, negative rent growth has been observed at this property for five out of six quarters. This indicates that management has not been able to pass on increased costs such as property taxes and insurance to tenants.
