Bankruptcy sale planned for Ali Choudhri’s Houston office building

Will troubled real estate investor Ali Choudhri finally lose control of an office building in the Galleria district that has been plagued by financial turmoil for a year?

A bankruptcy sale is planned for the 285,000-square-foot building at 2425 West Loop South, owned by an LLC linked to Choudhri’s company, Jetall Capital, Bisnow reported. The U.S. Bankruptcy Court for the Southern District of Texas ordered Hilco Real Estate to proceed with the sale.

The National Bank of Kuwait attempted to seize the building, but these efforts were delayed by Choudhri’s legal tactics. Despite persistent attempts to seize the bank, Jetall managed to push them back toward 2425 West Loop and another office building, at 1001 West Loop South.

Hilco has set a June 14 deadline to qualify bids and plans to hold a sale confirmation hearing on July 8. Asked whether the sale might be blocked, Hilco declined to comment, saying it would do its best to see the transaction through.

Choudhri, speaking on 2425 West Loop last summer, said the property company LLC had filed for Chapter 11 bankruptcy. He also noted significant progress in leasing since the pandemic, with DC Partners becoming tenant of the entire floor. The building previously housed Stage Stores, which left a huge vacancy after the business closed in 2020.

Choudhri has been involved with the building since 2013. Ownership officially changed in 2018 but remained associated with Choudhri. The same year, the National Bank of Kuwait provided a $60.2 million loan, the media outlet reported, citing court filings.

The 11-story office building, built in the 1980s, is located near the Galleria Mall and features amenities such as an on-site cafe, fitness center and parking. The building has also undergone several renovations in recent years.

—Quinn Donoghue