DALLAS — Editor's note: This article was originally published in the Dallas Business Journal.
A prominent high-rise in Uptown's popular West Village neighborhood has received a $15 million makeover — but is also being threatened with foreclosure by a lender.
Houston-based apartment developer Vero Sade has completed renovations to the 21-story, 381-unit building at 3700 McKinney Ave. it calls 3700M, the company said June 12.
But the property has also been scheduled for a July 2 foreclosure auction, according to a June 10 notice filed with Dallas County, raising questions about its future. It is possible the two parties could come to an agreement prior to the July 2 date, or that auction could be pushed back.
PHOTOS: Uptown high-rise gets $15M makeover, foreclosure threat from lender
Since acquiring the building two years ago, Vero Sade has "invested significant capital in bringing the asset to best of class in the Dallas multifamily market," Dan Bassichis, co-founder of Vero Sade, said in a statement. "We are deeply committed to maintaining our ownership of this property and have been working diligently with our lender over the course of several months to resolve this matter."
Limited liability companies connected to Vero Sade acquired the building from a Brookfield Properties affiliate in February 2022, according to Dallas County records. The companies took out a $121.5 million loan at that time with Column Financial Inc., according to a deed of trust filed with the county.
Column Financial was an affiliate of Credit Suisse Group AG before UBS acquired Credit Suisse last year.
The foreclosure notice lists the current noteholder as MF1 REIT II-A LLC, which according to a U.S. Securities and Exchange Commission filing is an investment firm tied to Boston-based Berkshire Residential Investments.
Attempts to reach the lender and trustees for comment were unsuccessful.
Dallas Central Appraisal District values the apartments at $125 million, not including the retail portions of the building. It was built in 2013, according to DCAD records.
Renovations at the property cost $15 million, according to a Vero Sade representative.
Vero Sade's vision for the property
The complex marks the Dallas debut of the company's "club living" concept meant to bring the energy of a social club into apartment complexes with elevated design and programming such as chef demonstrations and fitness classes. Philadelphia-based Good City Studio, which has worked on private clubs, designed the new spaces.
"Vero Sade’s club living concept is designed to reimagine traditional multifamily life through elevated, thoughtful design and purposeful programming — elements intended to encourage interactions, relationship building, and ultimately, community among its resident members," Bassichis said.
The units include studios, one-bedroom and two-bedroom apartments ranging from 562 to 1,475 square feet. Some will be used for short-term rentals. Available units on Apartment.com range from about $1,800 to $4,200.
The seventh floor features a 6,700-square-foot amenity center with city views, a rooftop pool, a yoga studio and a fitness center. On the ground floor is an event space and coworking space with private offices for rent.
Other real estate investors have taken note of West Village's popularity. Next door to Vero Sade's property, Los Angeles-based CIM Group recently sold Lennox at West Village, a 159-unit apartment complex on top of retail space.
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