The 15-story Dallas landmark Gateway Tower remains on the market after a prospective buyer reduced its offer during bankruptcy proceedings.
The property on LBJ Freeway is being sold off as part of Hartman SPE’s bankruptcy proceedings as the company transitions its focus to its self-storage portfolio, The Dallas Morning News reported. Younger Partners of Dallas is overseeing the sale.
It lists occupancy at 55% from “a diverse mix of tenant industries and in-place cash flow.”
“With in-place rents averaging 15% below market, the offering presents a rare opportunity to acquire a renovated office building with all the bells and whistles and current cash flow with mark-to-market rents on 58% rollover in the next 36 months,” Younger Partners says on its website.
“Current ownership has invested almost $675,000 in recent years to modernize the building and add amenities that include [a] conference center, tenant lounge, fitness center, grab-and-go, and renovated lobby.”
Built in 1928, Gateway Tower is located near the Westin Park Hotel and Galleria. It features a shared amenity floor with several conference rooms, breakout rooms, and suites.
The Dallas Morning News reported that Hartman, part of Houston-based Silver Star Properties, has contracted to sell several of its offices here. Hamilton Commercial amended its offer to buy Gateway Tower for $12.5 million instead of the $14.1 million the court authorized in November.
The bankruptcy filing follows the firm’s sale last year of its Prestonwood property for $25 million. It will reportedly be used “to improve its ability to sell its remaining legacy assets,” according to DIWire.
Hartman had about $131 million in office and retail buildings under contract for sale going into the bankruptcy. According to Silver Star Properties, the remaining $131 million under contract is expected to close in an amount sufficient to reach the $200 million loan balance.
Silver Star Properties owns many high-profile properties across North Texas, including North Central Plaza in Dallas, Skylark Tower in Arlington, and Richardson Heights in Richardson.