Receiver appointed for DTC office building after owner defaults on $18M loan

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A receiver now oversees the office building at 7100 E. Belleview Ave. in Greenwood Village. (Thomas Gounley/BusinessDen)

A receiver has been appointed to oversee a four-story office building in the Denver Tech Center after the owner defaulted on its loan.

Steve Schwab, a managing principal with Cushman & Wakefield, was appointed Monday to oversee the 164,000-square-foot building at 7100 E. Belleview Ave. in Greenwood Village.

The receiver was appointed at the request of Oconee Real Estate Holdings III LLC, which is affiliated with New York-based Voya Financial.

The office building is owned by 7100 E Belleview Property LLC, an entity affiliated with California-based Westport Capital Partners. Westport, which consented to the receivership, didn’t respond to a request for comment.

Westport purchased the property in December 2015 for $19.9 million, according to public records. It financed the deal with a $14.65 million loan from Wells Fargo and paid that off in December 2019. That same month, it took out a $21.08 million loan from the Voya affiliate, records show.

According to Voya’s lawsuit, the loan documents specified that the loan would be in default if Westport terminated the building’s management agreement without consent.

Voya alleges Westport did just that on June 9, and that Voya sent the owner official notice of the default on June 13.

Voya said in the lawsuit Westport still owes more than $18.5 million on the loan and that the loan is undersecured, meaning the building is worth less than the loan amount.

“In addition, the operating income from the Property is insufficient to pay operating expenses incurred in connection with the Property, which includes the monthly debt service payment owed to Lender,” Voya said in the suit.

Voya said it intends to foreclose on the property. Attorney William Meyer of Polsinelli is representing Voya in the court proceedings.

Arapahoe County’s appraised value for 7100 E. Belleview Ave. is $21.47 million — $15.36 million for the building and $6.1 million for the land underneath it, records show. Tenants include law firm Elkus & Sisson and computing firm Morpheus, per on-site signage.

Schwab, as receiver, has been authorized by the court to hire the law firm Barnes & Thornburg as needed, per court records. He did not respond to a request for comment.

Westport also owns the 30-story office tower at 1660 Lincoln St. in downtown Denver.

Voya also successfully requested a receiver for a different Greenwood Village office complex earlier this year. That complex, Triad Office Complex at 5660-5680 Greenwood Plaza Blvd., is owned by Denver-based Focus Property Group.

The two receiverships come at the same time another firm plans to construct a new 12-story office building in Greenwood Village.

POSTED IN Commercial Real Estate

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