DALLAS MART CENTER CONTINUES TO FIGHT FORECLOSURE IN COURT
DALLAS — Attorneys for the Dallas Market Center continued their courtroom efforts Tuesday for a temporary injunction to stop foreclosure proceedings against the 125-acre wholesale complex, which includes the International Apparel Mart and Menswear Mart.
The hearing, before Dallas Country Court Judge Michael O’Neill, began last Tuesday. As reported, The Equitable Life Assurance Society of the U.S. and Dai-ichi Life U.S.A, the market center’s lenders, posted notice in October that they might foreclose this month unless agreement were reached on restructuring a $450 million loan on the property to Trammell Crow Interests, which owns the DMC. No such agreement has been reached. Trammell Crow Interests, according to the lenders, have been in default since April.
DMC attorneys portrayed a business partnership between the Crows and Equitable and argued that Equitable’s consent to rent reductions and other leaseholder concessions in 1992 affected the payment schedule obligation. The concessions came about when a tenant group threatened to vacate the International Apparel Mart.
“The lenders repeatedly made assurances to act fairly in the face of concessions to the leaseholders,” said Michael Prince, a DMC attorney with Carrington Coleman Sloman & Blumenthal here. “They knew [the concessions] would hurt the Crows. But based on the lenders’ assurances, the Crows went forward with the concessions.”