28 Rented, 24 Sold: What’s REALLY Happening Over at the Palomar?

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Last week Dallas Morning News real estate editor Steve Brown shook the Dallas condo market world when he wrote that “Lenders may take Palomar condo tower”. He said that since last year, “Behringer Harvard has been trying  to renegotiate the debt on the Residences at Palomar condo building.” The news was that one of Behringer Harvard’s funds missed a $3 million payment in early 2011 on both the Palomar Residences and a Colorado project. What this means is that the lenders, a credit union under the control of federal regulators, could get testy and snatch the unsold units in its Residences at Palomar condominium building in Dallas.

I flew to the phone and called Adam Hignite, who is marketing the residences with Allie Beth Urban. His line was burning up with people assuming that the Palomar was going back to renting when it had in fact launched major price reductions and a sales program last July. Units have been decked out by designer Mark Godson and have been moving. Not flying off the shelves, but moving. Here’s what Adam said:

The Palomar going back to rentals? WRONG! Behringer Harvard is very focused on finding someone to pay off the entire underlying mortgage to take Texans Credit Union, which is under the control of federal regulators, out of the picture, which would be a good thing for the building. That would bring in a new developer as a partner, says Adam, and all financial issues will be wiped away at that point.

The Palomar units are still for sale, and not being converted to rentals. Over next couple months, the Allie Beth Urban team hopes to have good news to report on the new financial partner. Meantime 26 units of 39 are rented, not  46 as Steve reported, and a total of 24 are sold. That’s 33% of the building sold. Six sales have been made since spring. The one and two bedroom homes overlooking the pool are the most popular units. And pricing? In 2007 prices were just under $400 a square foot, now they are down to $210 and $230.  Texans Credit Union held the original mortgage, now the NCUA holds it under Credit Liquidity Services. Here’s more from Steve:

The Addison-based real estate firm has been negotiating since early last year with the mortgage holder on the building at Mockingbird Lane and North Central Expressway.

The project lender, which is under control of regulators, has now demanded full and immediate repayment of the entire debt.

“Conversations with the lender still continue,” said M. Jason Mattox, chief operating officer of Behringer Harvard. “We were in negotiations on a recapitalization and only learned very recently that it was not going to be acceptable.”

 

 

 

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Candy Evans

Candy Evans is one of the nation’s leading real estate reporters, bloggers and consultants. She reports on Dallas real estate for WFAA-TV’s Daybreak with Ron Corning, and is frequently called as a real estate expert by other Dallas media. She is also a real-estate editor for CultureMap Dallas, Modern Luxury Dallas, the Katy Trail Weekly and the White Rock Weekly. She even has her own web-based Real Estate show called, The Party Line. Candy has written for AOL Real Estate, and is a guest blogger for Joel Kotkin’s The New Geography, Inman Real Estate News plus a host of national sites. Candy was a longtime contributing editor to Dallas’ D Magazine and sister pubs, and in 2007 founded the wildly successful Dallas real estate blog, DallasDirt. That’s where she broke the news on where former president George W. Bush bought his Dallas home in 2008. She is the founder and publisher of an exciting platform of Dallas-based real estate sites including SecondShelters.com, devoted to the vacation home market, and her signature CandysDirt.com, everything you need to know about real estate in North Texas. And yes, we are still psyched about the GOLD! In 2013, CandysDirt.com was named Best Blog by the venerable National Association of Real Estate Editors, one of the nation’s oldest and most prestigious journalism associations, and the only association for journalists covering real estate, home and urban design. We snatched silver in 2015, and who knows what 2016 brings...

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