Mosaic, a 32-story, 440-unit apartment complex located in downtown Dallas is scheduled for a March 2nd foreclosure auction.
In 2004, Dallas-based Hamilton Properties bought the Akard Street property which had been vacant for 15 years. Following an extensive renovation, the father-and-son development team converted the property to luxury apartments.
After 3 years of interest only debt payments on the original $66.5 million mortgage, the property’s cash flow now falls short by $80,000 per month. Larry Hamilton stated that the company is still working with their lenders to reach an acceptable resolution for the remaining $63 million mortgage.
According to a report in the Dallas Morning News, factors leading to the foreclosure action included occupancy and competition:
Occupancy. The Mosaic reached 75 percent occupancy in January 2009, but it could never get beyond that, even though the company lowered its rental rates, Hamilton said. Rents today range from $1,100 to about $6,000. The average apartment is 1,250 square feet.
Competition. “Our timing was not great in opening,” Hamilton said. “We opened just as a bunch of other new luxury products opened downtown. It’s really a supply issue. The whole downtown residential market is struggling.”
Does anyone know who the lender is on the mosiac in dallas?
David, we have not been able to identify the lender through our available research resources. We’d be interested to know, if you find out.