Triad Dallas Properties Walking Foreclosure Tightrope

The Huntsville, AL-based owner's woes got under way in late January over a $45-million note held by Bankers Trust Co. for all but one of Triad's Dallas properties. Months of promising talks with a West Coast lender led to what was described as a legal precaution to place the properties on the foreclosure list as key players worked out final details to a restructuring package. A round of 11th hour talks ended with a temporary reprieve in February.

Today's noon auction is a replay of that same kind of uncertainty. Teetering on the edge is the 123,000-sf Atrium at Bent Tree at 1675 Addison Rd. in Addison; 91,000-sf Fairway Plaza at 300 Decker Dr. in Las Colinas; 150,000-sf Belvedere at 14481 Quorum Dr. in Dallas; and the 205,000-sf Courtyard at Arapaho in Richardson.

Triad's problems stem from exits in September 2001 when tenants Latus Lightworks and Heartland Insurance Group went bankrupt. In turn, 25% or 535,000 sf of Triad's portfolio went dark in one month and triggered a $216,000 monthly revenue loss.

Some 50,000 sf of deals were in the pipeline in early February, but apparently remain unsigned to date. The Atrium, valued at $11 million, is 70% occupied. The Belvedere, valued at more than $15.2 million, is 78% occupied. The 22-year-old Decker Drive office building, assessed at nearly $6.5 million, is 92% full and the Courtyard, valued at $18.3 million, is down by 130,000 sf. Triad bought the portfolio three years ago.