Possible Foreclosure for Regions Tower, Shreveport

Regions Tower is a property consisting of two office buildings located in the heart of Shreveport, Louisiana. Due to the beauty and grandeur of both buildings, they are among the most prominent constructions in the city’s commercial district.

For months, the building’s owners, Hertz Investment Group, have been experiencing problems with payments for basic services necessary for its normal operation. The first conflict arose from the non-payment of the electricity bill, which amounted to thousands of dollars. After being more than 90 days late on the payment and facing threats of service disconnection, the owner managed to reconcile and avoid the disconnection of the supply.

In addition to this, the building’s owners have also had issues with payments for gas, water, and sewage, with the building’s security company, with local companies for repair work, labor, and materials, etc. These defaults affect not only the owners but also the multiple tenants occupying the place.

However, the biggest and most complicated problem Hertz Investment Group faces is the default on the mortgage loan signed on the building. As a result of the default, the group of investors was sued by the mortgage creditor. Upon receiving the lawsuit, the federal magistrate ordered Trigild Property to take over and manage the property.

Since Trigild Property accepted the management, it has been authorized to handle lease contracts and tenant matters, make service payments, market the property, and rent or sell it if necessary. All these actions must logically be focused on paying off the debts the owner has on the building and helping creditors recover their investments.

According to the evidence and court documents presented with the lawsuit, the owners, Hertz Investment Group, still owe approximately $35 million on the mortgage loan. It seems the loan fell into difficulty due to the non-compliance with several factors such as owing loan installments, not maintaining the property in safe conditions, not providing financial reports to the creditor in a timely manner, and not depositing funds for the building’s essential operating costs into an account.

Apparently, as long as Regions Tower remains under judicial administration, its future will be uncertain. This will change the day the property is sold through a foreclosure process or transferred with court approval.

Available Foreclosures:

Shreveport: 12 homes available.

By Elias DaSilva | October 16, 2024.