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nother vintage office building is under threat of foreclosure due to rising commercial foreclosures in Texas. The Parkway Office Center North, located at 14180 Dallas Parkway in Addison, a suburb of Dallas, may be sold at a foreclosure auction scheduled for September 3rd at the Dallas County Courthouse. The property's owner, APEX Pacific Partners Advisors, defaulted on a $21.9 million mortgage, according to Roddy's Foreclosure Listing Service.

    The property, consisting of two nine-story buildings constructed in 1982 and 1983, was renovated in 2019, according to LoopNet. The buildings have a combined area of approximately 115,000 square feet, and are valued at $16.14 million, down from its 2023 appraised value of $24.25 million.

    The increase in commercial foreclosures in Texas can be attributed to rising interest rates making it difficult for some operators to pay their floating rate loans. According to ATTOM's latest foreclosure report, Texas ranks second in the nation for commercial foreclosures, behind California. In June, there were 70 commercial foreclosures in Texas, a significant increase of 100% compared to the same month last year.

    APEX Pacific Partners Advisors, a real estate investor based in Los Angeles and Dallas, jointly owned by Cardinal GenPar and Pilot Capital Investments, may lose the Parkway Office Center North due to its default on a $21.9 million mortgage. The company also owns properties in Denver and Los Angeles, according to its website.

    The situation in the office market is particularly challenging due to older inventory becoming obsolete and unsuitable for updates or conversion to other uses. The foreclosure of the Parkway Office Center North could further exacerbate this issue.

    While the future of the Parkway Office Center North remains uncertain, the commercial real estate market in Texas continues to face challenges due to rising interest rates and a surge in commercial foreclosures.