DALLAS — Read this story and more North Texas business news from our partners at the Dallas Business Journal
Six Dallas-Fort Worth office properties totaling nearly 1 million square feet could be sold in foreclosure auctions throughout the region next month.
The six properties, all financed under the same $265 million loan, are scheduled for foreclosure sales in Dallas and Denton counties in early May, according to county documents. Some of the buildings have lost major tenants in recent years — they include former offices for AT&T west of downtown Dallas and The Michaels Companies Inc.'s former headquarters in Irving.
Limited liability companies tied to The Aztec Fund — a private equity fund based in Mexico City that invests in office real estate throughout the U.S. — own the buildings. The properties were acquired between 2015 and 2019 and The Aztec Fund lists most of them on its website as part of its portfolio. Stories by Dallas Business Journal and other media outlets have also linked many of the properties to the group.
Bank of America, which originated a consolidation loan of up to $265 million for the properties in 2019, holds the debt and initiated the foreclosure proceedings. Evan McGuire of Griffith Jay & Michel LLP is the substitute trustee.
The DFW properties posted for foreclosure total more than $130 million in market value, according to tax offices.
The foreclosure auctions are set for May 7 in Dallas and Denton counties. However, it's possible that the two sides resolve their dispute before the auction date. Attempts to reach The Aztec Fund for comment were unsuccessful.
Here are the local properties that could be sold at auction, featuring information from local appraisal districts, marketing materials and listing information from Partners and CoStar Group:
• Pinnacle Park, 4331 Communications Dr., Dallas (206,000 square feet, built in 2001): About 7 miles west of downtown Dallas along Interstate 30, the L-shaped building purchased by The Aztec Fund in 2015 previously housed customer-service operations for AT&T's cable, phone and internet services. AT&T terminated its lease in November 2022, a company spokesperson told Dallas Business Journal. Dallas Central Appraisal District estimates the property's market value at $24 million.
• Former Michaels headquarters, 8000 Bent Branch Dr., Irving (two buildings, 217,000 SF, 1984/1986): This Las Colinas office park housed Michaels' headquarters for almost 20 years until the retailer moved during the pandemic to a new location along John Carpenter Freeway, near DFW International Airport. TAF Royal Tech LLC acquired the property in 2015, according to Dallas County records. Dallas Central Appraisal District estimates the market value at $21 million.
• Intellicenter, 3701 Regent Blvd., Irving (201,000 SF, 2007): This property, developed by KDC, is just northeast of DFW International Airport. Global Exchange Vacation Club and Caliber Home Loans offices are listed on Google at this address. TAF Intellicenter LLC acquired the property in 2019, according to deed records. Dallas Central Appraisal District estimates the value at $31 million.
• Lake Vista Three, 2780 Lake Vista Dr.; Lake Vista Four, 800 State Highway 121, Lewisville (244,000 SF, 2001/2006): These lakeside office buildings house offices for Mr. Cooper Group Inc. (Nasdaq: COOP), formerly known as Nationstar Mortgage. An entity connected to Aztec OME Holdings Inc. acquired the two adjacent office properties in 2019, deed records show. They total about $40 million in market value, Denton Central Appraisal District estimates.
• Lakeside II, 2900 Lake Vista Drive, Lewisville (86,000 SF, 2015): This building next to the two buildings previously mentioned houses offices for Enovis (NYSE: ENOV), a medical technology company previously known as DJO Global and Colfax Corp., according to its website. Dallas Business Journal reported The Aztec Fund's purchase in 2016. Denton Central Appraisal District values the building's two parcels at $14.5 million.
The debt reaches outside of Texas as well, as public documents also name entities that own properties in Colorado and Georgia as included on the loan.
This continues the pain felt by office owners throughout the metro area as office leasing activity has slowed and refinancing has become more of a challenge because of higher interest rates. Fort Worth's largest tower, Burnett Plaza, is also scheduled for auction in May, as well as an 11-story tower in Addison along the Dallas North Tollway.
