Transact Bank, formerly known as Colorado National Bank, operates in the 700 17th St. building. (BusinessDen file)
Foreclosure proceedings have been initiated for the 700 17th St. building in downtown Denver, a month after a receiver was appointed to oversee the building.
It’s the fourth downtown office tower to enter foreclosure since the pandemic.
The 24-story, 182,500-square-foot tower is owned by an affiliate of Denver-based Toma West. It was built in 1960 and most recently renovated in 2017.
The 700 17th St. tower was built in 1960. (BusinessDen file)
Public records show Toma West’s 700 17th Street LLC paid $32 million for the property in June 2016, although Toma West had also been affiliated with the previous LLC that bought it in 2006. The $21 million loan that financed the 2016 deal came from New York-based Benefit Street Partners.
That loan was for 10 years, set to expire in June 2026, according to the loan documents, which Toma West President Kenneth Grant signed. But Toma West defaulted earlier this year by failing to make payments on time, which led to the appointment of a receiver last month.
Benefit Street Partners submitted paperwork last week to foreclose on the building. In it, the lender said Toma West still owes $19.15 million in principal on the loan. Attorney Craig Schueneman of Bryan Cave Leighton Paisner is representing the lender.
Toma West Vice President and General Manager Richard Herold didn’t respond to a request for comment last week. But he told BusinessDen earlier this summer that the firm has an “amicable” relationship with its lender and “we’ll keep the building.”
Herold also noted the building — about 60 percent occupied, down from 90 percent when the loan was made in 2016 — isn’t alone downtown in facing challenges.
The other downtown buildings that have entered foreclosure since 2020 are the Denver Energy Center at 1625 and 1675 Broadway, The 410 at 410 17th St. and Trinity Place at 1801 Broadway.
Trinity Place’s foreclosure proceedings are ongoing. Denver Energy Center is now owned by lender Chase Bank after no one else bid in a 2022 foreclosure auction. The 410, meanwhile, has a new owner as of April, after its loan sold for a fraction of the building’s previous purchase price.
The owners of a number of other downtown office buildings have also defaulted on their loans. Those lenders could elect to initiative foreclosure proceedings at any time, but have not yet opted to do so.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
Transact Bank, formerly known as Colorado National Bank, operates in the 700 17th St. building. (BusinessDen file)
Foreclosure proceedings have been initiated for the 700 17th St. building in downtown Denver, a month after a receiver was appointed to oversee the building.
It’s the fourth downtown office tower to enter foreclosure since the pandemic.
The 24-story, 182,500-square-foot tower is owned by an affiliate of Denver-based Toma West. It was built in 1960 and most recently renovated in 2017.
The 700 17th St. tower was built in 1960. (BusinessDen file)
Public records show Toma West’s 700 17th Street LLC paid $32 million for the property in June 2016, although Toma West had also been affiliated with the previous LLC that bought it in 2006. The $21 million loan that financed the 2016 deal came from New York-based Benefit Street Partners.
That loan was for 10 years, set to expire in June 2026, according to the loan documents, which Toma West President Kenneth Grant signed. But Toma West defaulted earlier this year by failing to make payments on time, which led to the appointment of a receiver last month.
Benefit Street Partners submitted paperwork last week to foreclose on the building. In it, the lender said Toma West still owes $19.15 million in principal on the loan. Attorney Craig Schueneman of Bryan Cave Leighton Paisner is representing the lender.
Toma West Vice President and General Manager Richard Herold didn’t respond to a request for comment last week. But he told BusinessDen earlier this summer that the firm has an “amicable” relationship with its lender and “we’ll keep the building.”
Herold also noted the building — about 60 percent occupied, down from 90 percent when the loan was made in 2016 — isn’t alone downtown in facing challenges.
The other downtown buildings that have entered foreclosure since 2020 are the Denver Energy Center at 1625 and 1675 Broadway, The 410 at 410 17th St. and Trinity Place at 1801 Broadway.
Trinity Place’s foreclosure proceedings are ongoing. Denver Energy Center is now owned by lender Chase Bank after no one else bid in a 2022 foreclosure auction. The 410, meanwhile, has a new owner as of April, after its loan sold for a fraction of the building’s previous purchase price.
The owners of a number of other downtown office buildings have also defaulted on their loans. Those lenders could elect to initiative foreclosure proceedings at any time, but have not yet opted to do so.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
