The Star Telegram reports that Overton Centre office complex is facing foreclosure after GE Business Financial Services demanded payment of the $25.3 million mortgage on the property. Despite timely payments by the ownership group for the life of the loan, the multi-million dollar loan is still being called and the group is finding it difficult to refinance. Up until now, commercial foreclosures have been limited to underperforming buildings in poorer areas of the city; but currently many upper-scale commercial buildings are finding it hard to refinance and are being foreclosed on.
Although most individuals filing bankruptcy don't worry about the state of commercial property or their foreclosures, this type of issue has a ripple affect in the bigger economy. Foreclosed properties become a serious problem in urban areas, causing blight and closure of businesses that depend on these commercial properties for customers. The foreclosure of the Overton Centre office complex is just another sign of the times. Unfortunately, we will see more of these types of foreclosures hitting the Dallas-Fort Worth area in the near future.