The owner of an Addison-based office building is facing foreclosure after reportedly defaulting on millions of dollars in loans.
The Princeton — an office campus located at 14651 Dallas Pkwy in Addison — will be sold at an upcoming foreclosure auction after the registered owner failed to service roughly $35 million in commercial loan debt, The Dallas Morning News reported.
The nine-story office complex, built in 1982, includes more than 377,000 square feet of rentable office space and is about 60% leased, according to Colliers International, the commercial real estate services firm marketing the property.
Overall, the property has a central location that provides easy access to numerous dining, grocery, and retail options along Spring Valley Road and Belt Line Road. Additionally, The Princeton offers convenient proximity to the Galleria, Dallas North Tollway, LBJ Freeway, and the George Bush Turnpike.
Despite being situated in one of North Dallas’ prominent submarkets and benefiting from recent modernization and capital expenditures, the property owner — a Dallas-based partnership since 2004 — has been unable to turn the ship around.
After failing to make the necessary loan payments, Liberty Bankers Life Insurance (LBLI), the Texas-based lending firm responsible for financing The Princeton, declared the owners underwater and the property at risk of foreclosure.
To recoup its $35 million investment, LBLI has appointed a trustee to oversee the property sale and foreclosure auction, according to county records, per the DMN.
“Offered at a significant discount to replacement cost, The Princeton is anchored with strong existing tenancy, offering a diverse tenant roster featuring numerous technology, legal, medical, and financial firms with staggered rollover exposure,” Colliers said in the property description.
The Dallas Express reached out to Colliers International to request more details about the office property and a date for the foreclosure auction but did not hear back by press time.
The Princeton office complex is just one of several distressed office properties in North Texas currently facing foreclosure. Uptown Tower, formerly known as Amberton Tower, was another at-risk property facing default at the start of October.
Despite the uncertainty surrounding commercial real estate prices in 2023, Rich Hill, senior vice president and head of real estate strategy and research at Cohen & Steers, said “selective opportunities” are beginning to arise for investors willing “to take advantage of weakness,” as previously reported by The Dallas Express.
