Advertisement

businessReal Estate

Plano redevelopment foreclosure filing ranks as one of the largest

$388 million foreclosure posting in Legacy business park is one of the biggest in decades

Everything is big in Texas — including foreclosures.

Back in the 1980s, so much Texas real estate was sold at foreclosure auctions that it was described as the biggest change of U.S. property ownership since the Louisiana Purchase.

Since the Great Recession of a decade ago, new foreclosure filings in North Texas have been fewer and farther between.

Advertisement

That’s why this week’s foreclosure posting on Plano’s $1 billion Campus at Legacy West development is so eye-popping.

D-FW Real Estate News

Get the latest real estate news you need to know.

Or with:

Beal Bank loaned more than $388 million to finance the project in late 2016. It’s a redevelopment of J.C. Penney’s longtime headquarters campus near the Dallas North Tollway.

Now the lender has gotten crossways with developers Silos Harvesting Partners and Dreien Opportunity Partners and is threatening a forced sale of the property.

Advertisement

Don’t expect anything to happen anytime soon.

Such actions are common when borrowers and loan holders are negotiating over debt restructuring.

And it could be months or longer — particularly if legal action results — before anything happens with the property.

Advertisement

Developer Sam Ware says he’s looking for new financing to put the deal right.

Still, the $388 million foreclosure posting will go down as one of the largest ever in the Dallas-Fort Worth area.

The next closest was for Wade Park in Frisco, which was ultimately transferred to lender ownership without a formal foreclosure.

“Wade Park was the last significant nine-figure foreclosure posting we saw, and that also was in Collin County,” said Curtis Roddy of Foreclosure Listing Service, which tracks the filings. “The last time Wade Park was posted was in January of 2019, for $124,750,000.”

Before that, the previous recent loan default notices were for two area shopping malls — Vista Ridge in Lewisville with $64 million in debts and Collin Creek with about $55 million.

In 2017, developers who were redeveloping downtown Dallas’ former First National Bank tower were also threatened with foreclosure. After avoiding the forced sale, the skyscraper was sold last year to new developers who are completing the more than $450 million project.

Owners of the Wade Park site say it will cost between $150 million and $200 million to deal...
Owners of the Wade Park site say it will cost between $150 million and $200 million to deal with the huge excavation on the Dallas North Tollway left behind by the project's former developers.(Vernon Bryant / Staff Photographer)