This building along Union Avenue that once housed Towery Publishing is in foreclosure.  Photo: Eric Smith

The Midtown office building at 1835 Union Ave. that houses the sheriff campaign headquarters of Randy Wade has been foreclosed.

A first-run foreclosure notice for the 119,566-square-foot, Class D building appears on Page 38 of today’s print edition of The Daily News and also at The Daily News Online, www.memphisdailynews.com.

The building is still called the Towery Building because it once served as headquarters for Towery Publishing.

Its owner, 1835 Nevassee Investments LLC, defaulted on a $675,000 loan through Integrated Financial Associates LLC dated Oct. 30, 2006. The company, whose address is listed as a law office in Las Vegas, bought the building that same year for $1 million.

The trustee on the loan was Fidelity National Title Insurance Co., but last month the lender assigned Michael Hewgley as substitute trustee.

Hewgley will hold a substitute trustee’s sale of the building May 3 at noon on the Shelby County Courthouse steps.

Per newspaper policy, calls to the parties involved, such as the property owner, deed holder or trustee, are prohibited until the notice is published.

Built in 1968, the office building sits on 1 acre at the southwest corner of Union Avenue and South McLean Boulevard.

The Shelby County Assessor of Property’s 2009 appraisal was $1.2 million.

The office building has a Rasberry CRE sign posted out front that reads “Renovation in Process.”

The office building is connected to the 164,969-square-foot Artisan Hotel. That property’s owner is 1837 Tennvada Investments LLC, which shares an address with 1835 Nevassee Investments.

1837 Tennvada bought the hotel for $2.9 million in 2006. That property is not being foreclosed.

This is the latest commercial real estate foreclosure in what is expected to be a particularly bad year for the industry. Elizabeth Warren, chair of the Congressional Oversight Panel, said “half of all commercial real estate loans will be under water the end of this year.”

And Mark Dotzour, chief economist and director of research for the Real Estate Center at Texas A&M University, recently said properties bought during the first half of 2007 will see a rapid rate of CRE foreclosure through 2011.