$350M Redevelopment Threatened with Forced Sale

GCP Income Properties I LLC declared a huge downtown Dallas development project in default, and wants to sell it to get back the $55 million it invested through a forced sale. The project in question is the 52-story former First National Bank tower. Developer Drever Capital Management has been working for two years to convert the vacant building at 1401 Elm St. into a mixed-use project with apartments, retail, office space and hotel rooms, valued at $350 million.

The problem, however, is that Drever Capital needs new financing for the project, which is dubbed, appropriately enough, The Drever. A Drever spokesperson told the Dallas Morning News that new financing is in the works, construction continues, and completion is still scheduled for 2019.

Meanwhile, GCP Income of Texas has appointed a trustee to sell the property, according to filings with Dallas County. The project is downtown Dallas’ largest redevelopment project.

For comments, questions or concerns, please contact Texas Commercial Real Estate Editor Amy Sorter