A
prominent office building in Houston's Energy Corridor is facing foreclosure. Kirkwood Tower, a 15-story property clad in black glass, may be sold at auction due to Gemini Rosemont allegedly defaulting on a $30.86 million loan. The company purchased the property from Amstar in 2014 with a loan from Voya Insurance.

    The building's taxable value decreased by nearly 17% over three years, from $41.6 million to $34.7 million. Kirkwood Tower features a fitness center and rooftop jogging track, but its location along Interstate 10 may not be enough to offset the challenges facing commercial operators in Houston's office market.

    With interest rates rising since 2022, many commercial borrowers have struggled to pay floating-rate loans, leading to increased foreclosure rates nationwide. In Houston, the office vacancy rate peaked at 28.2% in December 2022 and remains high at 25.7%, resulting in an estimated $1.56 billion in lost rental revenue annually.