Whitestone Uptown Tower LLC, the owner of the Uptown Tower office building in Dallas, announced it has filed a Chapter 11 voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas.
According to the company, the bankruptcy filing comes one day before a foreclosure sale of the property that was scheduled for Dec. 5. A Whitestone REIT subsidiary is a guarantor on the Uptown Tower mortgage loan.
Whitestone Uptown Tower LLC is a subsidiary of Pillarstone Capital REIT Operating Partnership LP, a partnership owned by Pillarstone Capital REIT (as a general partner) and Whitestone REIT Operating Partnership LP (as a limited partner). Pillarstone was seeking to sell the property to satisfy the loan obligations, but Whitestone has not approved a sale.
Pillarstone CEO Bradford D. Johnson said the bankruptcy filing was “a necessary step after Pillarstone efforts to resolve the dispute with Whitestone failed to achieve a workable solution.”
