glafirarynyxu.blogspot.com
Opus spokeswoman Winston Hewettsaid it's too soon to say what impactr the anticipated Chapter 11 filing will have on Opus'' already downsized Dallas operations. The Dallas office has not starteed a new development in more than a year and has cut its staffv to 12 employees from about 40 ayear ago, Hewetyt said. Phoenix-based Opus West's overall headcount had dropped to 40 as ofJuly 1, compareed to 291 two years ago, she said. "Opus as a wholre took our foot off the gas 18monthes ago," Hewett said, "but it wasn't soon enough." Opus Group on July 1 said it plansa to file a bankruptcy petition for its Opus West subsidiary, which has several projects in North Texas.
Sinces April, dozens of subcontractors have filed liens totalinf morethan $4 millioh against Opus Group and Opus West Corp. tied to Two Addisoh Circle, a $23 million, 198,000-square-foot speculativer office buildingin Addison. The building was developee and is owned by OpusWest Corp. The liensx claim Opus owes the subcontractors for labot or materials provided in the course of The six-story Two Addison Circle building on the west side of the Dallase North Tollway just north of Arapaho Road was recentlgy completed, but has no tenants.
The credit crunch and slowingg demand for office spacee have left Opus unable to get permanent financing to replacethe short-term construction loan on the Addison project, Hewett said. Other Opus West Corp. projectes in North Texas include the 121 Lakepointe an office and industrial development in andBroadstone Parkway, a 5.8-acre mixed-use project at 5005 Gallerisa Drive in North Dallas. Stevwe Golding, president and chief operating officeer in the Dallas office ofdeveloper Jackson-Shaw, said the anticipated bankruptcu filing by Opus West shows North Texas is being impactex by the economic downturb along with the rest of the nation.
"Clearly anytime someone with that kind of name and nationa scopefiles bankruptcy, it has a negative perception on the and it's unfortunate," Goldingg said. , which is basedc in Minnetonka, Minn., is a design-build developmengt firm that specializesin office, retail, multifamily, government and institutional projects. It also controlz Washington-based LLC, which filed for Chapte 7 liquidationlast week. Opus Group said its which is basedin Atlanta, filed for reorganizatioh in bankruptcy court on April 22. Opus Group said the bankruptc y filings are a result of a steep declins in commercial real estate valuess and difficult creditmarket conditions.
The company said Opus West plans to maintain its Phoenix headquarterszand "a modest presence" in Texa s and California that will focus on asser sales. Robert Deptula, principal in the Dallasx office of commercial real estatefirm , said to expecyt more bankruptcy filings by developers. "They're runningt out of negotiation room and the banks are beiny forced to take Deptula said. "They've delayed and postponed foreclosurw in some cases as long andthey can, and they'rwe going to have to realize the valu e dimunition that the economy has brought about.
"
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment