Bankruptcy Court Approves $65M Sale of Downtown Dallas Skyscraper

by San Antonio Attorney

A bankruptcy court in Dallas, Texas has recently approved the sale of an old downtown skyscraper located at 1401 Elm St.

Drever Capital Management, a firm based in California, offered to purchase the historical landmark of Dallas, the First National Bank tower at a price of $65 million.

The developers have initially redeveloped the 52-story tower at a cost of $240 million but the project did not succeed and eventually ended in bankruptcy.  The lenders made a threat to foreclose the tower and the developers were unable to obtain sufficient funds to push through the construction process.

The building’s purchasers last 2014, BDRC Partners and Olympic Property Partners have also contracted to sell the uncompleted structure to Drever, a San Francisco based firm.

However, the lenders whose debts cost more than $53.5 million at stake in the project have protested in the proposed sale of the building.  The bankruptcy court has recently ruled that the transaction of selling the building may proceed.

The court has determined that all the circumstances of the case and a reasonable value of the selling price that follows the ‘purchase and sale’ agreement and a proposed property sale to a potential purchaser will comprise a reasonable exercise for the debtor’s judgment and will be approved.

The proposed sale will happen by the end of the month but might be delayed and rescheduled by the end of May.

The Elm Street Tower, almost 50 years old, has been non-operational since 2010.  It was considered as the largest redevelopment project in Dallas.

John Crawford, Chief Executive Officer of Downtown Dallas, an economic development organization, said that obtaining approval from the court has paved the opportunity to clean any disorganized system and allow an opportunity for a new proprietorship.

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