The Cherry Creek Plaza I and II buildings in Glendale last sold in March 2020. (BusinessDen file)
Two office buildings in Glendale that last sold in the early days of the pandemic have entered foreclosure.
On March 10, 2020, TerraCap Management, a firm based in Florida, paid $54.59 million for the Cherry Creek Plaza I and II buildings at 600 and 650 S. Cherry St.
The next day, the NBA canceled the remainder of its season and Tom Hanks announced on Instagram that he had coronavirus.
TerraCap financed the deal with a $45.58 million loan from NXT Capital. Earlier this month, the current holder of the debt, Phoenicia Real Estate Holdings, submitted the paperwork to foreclose, meaning TerraCap defaulted on the loan.
The debtholder stated TerraCap owed $35.87 million — $33.96 million in principal, with the remainder interest.
The largely identical Cherry Creek Plaza buildings are both 13 stories, and about 335,000 square feet combined. When TerraCap bought them, the company said occupancy was 73 percent, factoring in a full-floor tenant that was about to exit.
As of Wednesday, CoStar showed Cherry Creek Plaza I as 65 percent leased. The slightly larger Plaza II building is 60 percent leased, with about 5 percent of that being marketed for sublease.
TerraCap didn’t respond to a request for comment on Wednesday. Kendall Kadish, a Holland & Knight attorney representing Phoenicia, also didn’t return a voicemail.
TerraCap likes building pairs. The company entered the Denver market in 2019 with the $72 million purchase of Denver Corporate Center II and III in the Denver Tech Center. Two months later, the firm paid $77.5 million for the Centerpoint I and II buildings by the I-25/Colorado Boulevard interchange.
TerraCap later bought Denver Corporate Center I and two other buildings in the DTC.
None of TerraCap’s other local holdings are in foreclosure.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
The Cherry Creek Plaza I and II buildings in Glendale last sold in March 2020. (BusinessDen file)
Two office buildings in Glendale that last sold in the early days of the pandemic have entered foreclosure.
On March 10, 2020, TerraCap Management, a firm based in Florida, paid $54.59 million for the Cherry Creek Plaza I and II buildings at 600 and 650 S. Cherry St.
The next day, the NBA canceled the remainder of its season and Tom Hanks announced on Instagram that he had coronavirus.
TerraCap financed the deal with a $45.58 million loan from NXT Capital. Earlier this month, the current holder of the debt, Phoenicia Real Estate Holdings, submitted the paperwork to foreclose, meaning TerraCap defaulted on the loan.
The debtholder stated TerraCap owed $35.87 million — $33.96 million in principal, with the remainder interest.
The largely identical Cherry Creek Plaza buildings are both 13 stories, and about 335,000 square feet combined. When TerraCap bought them, the company said occupancy was 73 percent, factoring in a full-floor tenant that was about to exit.
As of Wednesday, CoStar showed Cherry Creek Plaza I as 65 percent leased. The slightly larger Plaza II building is 60 percent leased, with about 5 percent of that being marketed for sublease.
TerraCap didn’t respond to a request for comment on Wednesday. Kendall Kadish, a Holland & Knight attorney representing Phoenicia, also didn’t return a voicemail.
TerraCap likes building pairs. The company entered the Denver market in 2019 with the $72 million purchase of Denver Corporate Center II and III in the Denver Tech Center. Two months later, the firm paid $77.5 million for the Centerpoint I and II buildings by the I-25/Colorado Boulevard interchange.
TerraCap later bought Denver Corporate Center I and two other buildings in the DTC.
None of TerraCap’s other local holdings are in foreclosure.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
