Iconic Oil & Gas building in downtown Fort Worth faces foreclosure
February 21,2024
See full The Real Deal article by Jess Hardin here.
DFW syndicator Kenny Wolfe is facing his second downtown foreclosure this year.
The iconic Oil & Gas Building in downtown Fort Worth is facing foreclosure just a year after it was purchased by Dallas-based syndicator Bluelofts and Plano-based Wolfe Investments, according to Roddy’s Foreclosure Listing Service. Legacy Bank & Trust provided the $12.3 million debt in January 2023.
Wolfe teamed up with Bluelofts to purchase the 16-story Oil & Gas building and adjoining 19-story Star-Telegram building with plans to convert the buildings to apartments. The Oil & Gas building was constructed in 1952. Its neighbor, formerly known as the Fair Building, was built in 1930. They share a Seventh Street entrance.
The foreclosure auction is scheduled for March 5. It’s possible that the lender and borrower could come to a resolution before the scheduled auction.
Wolfe already lost a downtown Dallas building to foreclosure earlier this month.
The blue-paneled tower at 211 North Ervay sold for $8 million, or $42 per square foot, to an entity tied to Wolfe’s lender, according to data from Roddy’s Foreclosure Listing Service. Thistle Creek Partners, a division of Thistle Creek Capital, provided the $13.2 million loan on the property.
Wolfe made news when he purchased the building last year and announced plans to convert it from offices to apartments.
The protegee of multifamily syndication guru Brad Sumrock has also been slammed with two lawsuits accusing him of defaulting on loans connected to the purchases of 211 North Ervay and the Oil & Gas and Star-Telegram buildings.
In September, New York-based lender TBG Funding accused Wolfe Investments of defaulting on a $7.5 million bridge loan. It also names 307 Star GP LLC and 307 Star Highrise LLC, which are likely connected to the Star-Telegram building, at 307 West Seventh Street.
A December lawsuit claims Wolfe and his wife, Teresa, defaulted on a $6.15 million loan provided for the purchase of 211 North Ervay Street. In the suit, Priya Capital CEO Niraj Shah claims the Wolfes instead used the money to open a line of credit to purchase the Oil & Gas Building.
Wolfe partnered with Bluelofts to purchase the Star-Telegram and Oil & Gas buildings with plans to convert the buildings to apartments. Bluelofts is marketing the Star-Telegram building as “The Star on 7th,” and aiming to pull in small investors on the deal for a minimum contribution of $25,000.