The building at 2926 Umatilla St. in Denver on Sept. 4, 2024. (Thomas Gounley/BusinessDen)
A local developer’s small LoHi office building that has yet to make it to the finish line has entered foreclosure.
Parkview Financial, the lender that financed Generation Development’s construction of the building at 2926 Umatilla St., submitted paperwork late last week to force a sale of it.
Chris Lonigro
The building on a former parking lot is five stories and nearly 33,000 square feet, with about 25,000 of that rentable. But it isn’t completed.
Denver-based Generation, which primarily develops condominiums, broke ground on the project in early 2022, and initially expected to complete it in a year. As of late 2023, Generation President Chris Lonigro said it would be finished in the first quarter of this year.
Wednesday morning, however, a portion of the first floor was still covered in plywood, and construction fencing was still in place, although it had fallen down. No one was working at the site.
No tenants have been announced for the building. The website of JLL, which has been marketing it, still shows all 25,000 square feet available.
Lonigro didn’t respond to a request for comment.
Generation purchased the property in 2018, and took out an $8.7 million from Parkview in September 2021, according to public records. At the time, Parkview Financial CEO Paul Rahimian said in a news release that the project was “poised for success as there is minimal product and a high user demand in the LoHi submarket.”
“We looked at a bunch of direct uses for that site, and felt like office was the most underserved,” Lonigro told BusinessDen the following March. “Lower Highland has a lot of residential.”
The loan had an original maturity date of March 31, 2023, although that date was later pushed back to the end of June this year. Maturity refers to the point when a loan must be paid off.
In filing for foreclosure late last week, Parkview said Generation still owes $7.31 million in principal on the loan.
A banner at the site still advertises a 2023 delivery date. (Thomas Gounley/BusinessDen)
This week, on Wednesday, Parkview took an additional step, asking a judge to appoint Denver-based Cordes & Co. as receiver to oversee the property.
“The Property and the improvements being constructed on the Property are in danger of being materially delayed, injured, impaired, reduced in value, removed, and/or lost. There is a danger of waste, destruction or deterioration to the Property if a receiver is not appointed,” Parkview wrote in its receivership lawsuit.
Parkview isn’t the only one that hasn’t been paid. Contractors have filed numerous liens against the property in recent months. The first came in December from Traverse Steel of Windsor, which said it was owed $40,000. Another dozen liens have followed since, totaling at least $1.2 million, according to a BusinessDen review of public records.
Most of those liens have yet to be released. The largest pending lien is from Greenwood Village’s Performance Contracting, which said in the spring it’s owed about $204,000. Denver’s Kennedy Electric filed a $191,000 lien in July.
Attorneys Jeremy Rothstein and Travis Riley of Senn Visciano Canges are representing the lender. Rothstein and Parkview didn’t respond to separate requests for comment.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
The building at 2926 Umatilla St. in Denver on Sept. 4, 2024. (Thomas Gounley/BusinessDen)
A local developer’s small LoHi office building that has yet to make it to the finish line has entered foreclosure.
Parkview Financial, the lender that financed Generation Development’s construction of the building at 2926 Umatilla St., submitted paperwork late last week to force a sale of it.
Chris Lonigro
The building on a former parking lot is five stories and nearly 33,000 square feet, with about 25,000 of that rentable. But it isn’t completed.
Denver-based Generation, which primarily develops condominiums, broke ground on the project in early 2022, and initially expected to complete it in a year. As of late 2023, Generation President Chris Lonigro said it would be finished in the first quarter of this year.
Wednesday morning, however, a portion of the first floor was still covered in plywood, and construction fencing was still in place, although it had fallen down. No one was working at the site.
No tenants have been announced for the building. The website of JLL, which has been marketing it, still shows all 25,000 square feet available.
Lonigro didn’t respond to a request for comment.
Generation purchased the property in 2018, and took out an $8.7 million from Parkview in September 2021, according to public records. At the time, Parkview Financial CEO Paul Rahimian said in a news release that the project was “poised for success as there is minimal product and a high user demand in the LoHi submarket.”
“We looked at a bunch of direct uses for that site, and felt like office was the most underserved,” Lonigro told BusinessDen the following March. “Lower Highland has a lot of residential.”
The loan had an original maturity date of March 31, 2023, although that date was later pushed back to the end of June this year. Maturity refers to the point when a loan must be paid off.
In filing for foreclosure late last week, Parkview said Generation still owes $7.31 million in principal on the loan.
A banner at the site still advertises a 2023 delivery date. (Thomas Gounley/BusinessDen)
This week, on Wednesday, Parkview took an additional step, asking a judge to appoint Denver-based Cordes & Co. as receiver to oversee the property.
“The Property and the improvements being constructed on the Property are in danger of being materially delayed, injured, impaired, reduced in value, removed, and/or lost. There is a danger of waste, destruction or deterioration to the Property if a receiver is not appointed,” Parkview wrote in its receivership lawsuit.
Parkview isn’t the only one that hasn’t been paid. Contractors have filed numerous liens against the property in recent months. The first came in December from Traverse Steel of Windsor, which said it was owed $40,000. Another dozen liens have followed since, totaling at least $1.2 million, according to a BusinessDen review of public records.
Most of those liens have yet to be released. The largest pending lien is from Greenwood Village’s Performance Contracting, which said in the spring it’s owed about $204,000. Denver’s Kennedy Electric filed a $191,000 lien in July.
Attorneys Jeremy Rothstein and Travis Riley of Senn Visciano Canges are representing the lender. Rothstein and Parkview didn’t respond to separate requests for comment.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
