Pacific Elm Properties, led by Jonas Woods, is facing the possible foreclosure of One Dallas Center at 350 North St. Paul Street in downtown Dallas. The firm reportedly defaulted on a $34.5 million mortgage tied to the property, which it acquired in 2015 by assuming the securitized note.
The building is scheduled for auction at the Dallas County Courthouse on September 2 at 10 a.m., though an agreement between lender and borrower could still prevent the sale.
One Dallas Center was developed in 1979 by Carrozza Investments and later purchased by Todd Interests in 2012. Todd Interests converted the structure into a mixed-use building with luxury apartments occupying the top 15 floors.
This event follows Pacific Elm Properties’ loss of Comerica Bank Tower last year. The company, along with TriGate Capital, lost ownership when Slate Asset Management took over the 60-story tower at 1717 Main Street in May 2024. At that time, vacancy in Comerica Bank Tower had reached at least 36 percent.
Downtown Dallas has experienced rising office vacancies since remote work became more common. Older office buildings have struggled as companies move to newer properties in Uptown. According to Partners Real Estate, vacancy rates reached 34.7 percent in downtown’s central business district and 25.3 percent across the wider market by the end of Q2 (https://www.partnersrealestate.com/market-research/).
Attempts to convert older office spaces into residential units have faced significant logistical and financial challenges. Todd Interests and Pacific Elm were among early adopters of this trend, with Todd Interests also responsible for converting The National into a mixed-use tower and Pacific Elm turning part of Santander Tower into apartments.
