DALLAS, TX - The partnership behind the 1600 Pacific Building, a downtown Dallas office building that is slated to be converted into affordable housing units, has filed for Chapter 11 bankruptcy protection.
The partnership 1600 Pacific Building LP, which is based out of La Jolla, Calif., intends to move forward with the project, attorney Robert Nicoud, who is an attorney for the partnership, confirmed on Wednesday.
In the bankruptcy filing, the owner of 1600 Pacific said it has up to 49 creditors and liabilities that fall between $1 million and $10 million.
Nicoud said the building was completely vacant and facing foreclosure by its lending bank. He added that the source of the owner's troubles stems from the threat of foreclosure and a delay in obtaining a combination of tax increment funding from the City of Dallas.
Curtis Lockey, manager of the partnership, added that 1600 Pacific Building LP is pursuing a financing package with the city that will help subsidize the project. He added that getting through the entire process is taking longer than the building's owners had expected.
"We are moving fast and furious with our partners already in place and hope with the city's support and participation we will be able to come out of bankruptcy," said Lockey.
Lockey added that there are varying levels of approval that the partnership has to go through and it expects to meet with city officials by the end of the month to learn more about the possibility of supplemental funding.
The project is expected to result in 590 multifamily residential units that the partnership says will contribute to the city's goal of creating 1,000 affordable units in downtown Dallas.
Source: Dallas Business Journal