According to an article in the Dallas Morning News, lenders have filed foreclosure
on the 42 acre redevelopment site located at the northwest corner of North Central Expressway and Walnut Hill Lane. The hillside property was slated to become an urban village with housing, retail and office space. But the development of the site stalled after the credit crunch cut off funding needed to complete the $400 million project. The lender is hoping a foreclosure sale will help them recoup more than $40 million on debt.
The Walnut Hill project is one of many commercial real estate foreclosures caused by the crisis. Many developers have found themselves caught in the middle of building a project with no access to credit. And many others are unable to survive the lack of credit due to the depressed housing market and limited cash reserve.
Compounding the issue is the fact that creditors are afraid to lend money to developers because of the excess inventory of commercial property on the market caused by the foreclosure crisis and the excessive time it takes to sell property. This reluctance is creating a domino effect which has sent several commercial real estate developers into foreclosure and/or into bankruptcy.
Even developers who have solid credit history and reputation for building properties that sell are facing foreclosure and/or bankruptcy. No one has been spared.