The loan secured by downtown office tower Republic Plaza is no longer in default.
New York-based real estate giant Brookfield and MetLife Investment Management, which together own the 56-story skyscraper, said Wednesday that they have modified the loan secured by the 1.3-million-square-foot building, extending its terms through March 2026.
The building’s $243 million loan matured in December, according to Trepp, a firm that tracks commercial real estate loans. The loan was placed in special servicing when the ownership group was unable to pay it off at that time.
Landlords often secure new loans when an existing loan is set to mature, but that has been challenging in recent months due to the increase in interest rates and reduced demand, and continued uncertainty surrounding the office market.
The lender could technically have taken ownership of the building when Brookfield and MetLife defaulted on the loan. But lenders often see that as a last-resort option, and analysts previously told BusinessDen they expected an alternate deal would be worked out.
Brookfield Executive Vice President David Sternberg noted in a statement that Republic Plaza recently secured a couple wins on the leasing front. The city last month leased three floors, about 74,000 square feet, for the Denver District Attorney’s Office. And oil and gas firm Ovintiv renewed a lease for 262,000 square feet, although that represents a downsizing for the company.
“We are pleased the loan modification positions the building for success going forward,” Steinberg said. “We remain deeply committed to Downtown Denver and look forward to sharing additional positive momentum for Republic Plaza soon.”
Republic Plaza was built in 1984, and Brookfield has owned it since the early 1990s, public records indicate. The company announced in 2014 it was selling a 50 percent stake in the building to MetLife in a deal valuing the structure at $480 million.
Trepp told clients in April that the building was worth $298 million.
The loan backed by the 52-story Wells Fargo Center, also owned by Brookfield, has also been in special servicing. A Brookfield spokesperson didn’t respond to a request for an update regarding those negotiations.
BusinessDen broke the news last week that Chef Troy Guard is planning to open a wine bar called Done Deal in the lobby of Republic Plaza.