The deal to sell the Solana Business Park to Houston-based Moczulski & Moczulski Properties has fallen through, and the property is now in the hands of the lender.
A state district judge in Tarrant County was to approve the sale Thursday, but Brian Summers, the court-appointed receiver overseeing the disposition of the property, said he received an eleventh-hour email from the attorney for M&M Properties saying it would be stepping away from the deal.
“And they did,” Summers said. “The buyer walked away.”
M&M Properties was the highest bidder for the property, offering $195 million for the 14-building campus-style office development on both sides of Texas 114 in Westlake and Southlake. The properties include a Marriott hotel. The 900-acre business park, developed in 1989 by Los Angeles-based Maguire Partners and IBM Corp., was held under three partnerships.
In December 2006, Maguire Partners borrowed $395 million from the New York branch of German bank Eurohypo AG. U.S. Bank is a trustee for lenders Banc of America Commercial Mortgage and JPMorgan Chase Commercial Mortgage.
In 2010, U.S. Bank began posting the office buildings for foreclosure after Maguire fell more than a year in arrears and told the bank it was having trouble paying its bills. Instead of foreclosing, the bank sought a court-appointed receiver in November 2011 to handle the disposition of the property.
On Monday, the judge allowed U.S. Bank to foreclose, paving the way for the sale to M&M Properties. Five Village Circle Holdings L.P. is the U.S. Bank entity that foreclosed and now holds the property, Summers said.
As a result, a deal to sell one of the office buildings to Digital Realty Trust, which offered $49.2 million for a 304,000-square-foot building, also fell through.
Digital Realty agreed to the sale in June, but it had not closed. Summers said M&M Properties wanted that building as well and was included in the sales contract.
“Both of those transactions have gone away,” Summers said.
Two other developers have bought property in Solana and plan residential and commercial projects.