A downtown Dallas office tower is facing foreclosure months after its owners failed to pay off a $79 million loan before the due date, records show.
Lenders are seeking to auction 2100 Ross Ave., a 33-story high-rise owned by a partnership affiliated with Dallas-based Woods Capital and Pacific Elm Properties, in early October. Woods Capital CEO Jonas Woods and Pacific Elm CEO Bill Prewitt did not immediately respond to questions about the looming foreclosure.
The group originally owed $98 million against the property. In June, Fitch Ratings classified the $79 million 2100 Ross loan as a nonperforming matured balloon loan in May, meaning the debt wasn’t paid off or refinanced before it was due.
The tower was flagged for foreclosure according to Roddy’s Foreclosure Listing Service, The Real Deal reports. The property was valued at $99.4 million for property tax purposes.
The 840,000-square-foot tower on the edge of the Arts District was built in the 1980s. In 2015, a partnership headed by Dallas businessman Tom Dundon purchased the tower for $131 million from Atlanta-based Cousins Properties. Dundon, the former CEO of Santander Consumer USA, owns the NHL’s Carolina Hurricanes and the NBA’s Portland Trailblazers.
Dundon listed the property in 2019. A partnership tied to Woods, a longtime business partner and friend of Dundon, took ownership. Woods Capital is a subsidiary of Pacific Elm Properties. Woods was a founder of Pacific Elm Properties alongside Prewitt.
Like a handful of other downtown properties, 2100 Ross has seen key tenants leave its building in recent years. Lockton and its 400 employees announced last year that was taking 100,000 square feet in Hillwood’s Victory One Commons in Victory Park. The move was set for early 2026. Real estate giant CBRE’s lease at the high-rise expired in March 2022. Prudential announced in July that it was shifting its office space away from 2100 Ross to downtown’s Trammell Crow Center and Uptown’s 23Springs.
The property is only 53% occupied, reports filed in county court show. A Dallas County court named asset management firm Trigild IVL as the appointed receiver over the tower.
Downtown Dallas has struggled with office vacancy with the Arts District outperforming the West End and the Central Business District submarkets. The vacancy rate in the Arts District is 25.6%, not far off the region average. However, the Central Business District core’s vacancy rate climbed to 37% in the second quarter of this year, according to a report from real estate firm Cushman and Wakefield.