Industry RiNo Station is located at 3827 Lafayette St. in RiNo. (BusinessDen file)
Add Industry RiNo Station to the list of local distressed office real estate.
The owner of the 150,000-square-foot building at 3827 Lafayette St. hasn’t made payments on its loan since December, according to a report from Trepp, a firm that tracks commercial real estate loans.
The property’s $60 million loan was transferred to special servicing earlier this month, according to Trepp. Special servicers are essentially negotiators brought in when a lender gets concerned about an asset.
The loan was made in 2022 and matures in 2032.
Developer Jason Winkler, who owns about half the property, called the situation “a counter-intuitive and clunky commercial real estate scenario.”
“We have months of interest payments sitting in reserve accounts with the lender, but those dollars cannot be used for paying the interest,” he said. “We are currently working with the lender to resolve this crux and hope to be back on track soon.”
Winkler said the property brings in more than it spends each month.
Winkler and New York-based Clarion Partners debuted Industry RiNo Station in late 2017. In 2022, Clarion exited the building as part of a recapitalization that brought in a new partner, which Winkler described as a family. The building has technically been owned since completion by Industry RiNo Station LLC.
Jason Winkler
Industry RiNo Station is 75% leased, but its largest two tenants have leases that expire this year and next, according to Trepp.
Atlanta-based software firm OneTrust, which acquired Convercent’s lease when it bought the company in 2021, has 37,000 square feet through July. The company didn’t respond to requests for comment on whether it intends to stay, and Winkler declined to comment.
The building’s second-largest tenant — Denver-based DispatchHealth — has nearly 30,000 square feet through August 2026, per Trepp.
Last summer, two entities that Winkler controls — his development firm Q Factor and his general contracting firm Makers Line — were separately sued and evicted by Industry RiNo Station LLC. Between the two cases, the landlord entity asked judges to award it about $1 million for unpaid rent and attorney fees.
Months after the cases were filed, Winkler personally authored a response to them. Writing on behalf of Q Factor and Makers Line, he said in November that “there are not funds for counsel.” But judges ordered him to hire a lawyer, because companies in Colorado can’t represent themselves except in very unusual circumstances.
In December, the cases were paused to allow “time to explore settlement discussions.” Attorney Christian H. Hendrickson, now with the law firm Taft, wrote at the time that Industry RiNo Station LLC had “gone through a change in management.” Winkler, who lives in the Salt Lake City area, declined to comment on the cases.
Industry RiNo Station is the second of two Industry-branded adaptive reuse shared office buildings that Winkler and partners developed in RiNo in the 2010s. The first was Industry Denver, at 3100 Brighton Blvd. That building sold at a loss for $19 million last year after a loan default.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
Industry RiNo Station is located at 3827 Lafayette St. in RiNo. (BusinessDen file)
Add Industry RiNo Station to the list of local distressed office real estate.
The owner of the 150,000-square-foot building at 3827 Lafayette St. hasn’t made payments on its loan since December, according to a report from Trepp, a firm that tracks commercial real estate loans.
The property’s $60 million loan was transferred to special servicing earlier this month, according to Trepp. Special servicers are essentially negotiators brought in when a lender gets concerned about an asset.
The loan was made in 2022 and matures in 2032.
Developer Jason Winkler, who owns about half the property, called the situation “a counter-intuitive and clunky commercial real estate scenario.”
“We have months of interest payments sitting in reserve accounts with the lender, but those dollars cannot be used for paying the interest,” he said. “We are currently working with the lender to resolve this crux and hope to be back on track soon.”
Winkler said the property brings in more than it spends each month.
Winkler and New York-based Clarion Partners debuted Industry RiNo Station in late 2017. In 2022, Clarion exited the building as part of a recapitalization that brought in a new partner, which Winkler described as a family. The building has technically been owned since completion by Industry RiNo Station LLC.
Jason Winkler
Industry RiNo Station is 75% leased, but its largest two tenants have leases that expire this year and next, according to Trepp.
Atlanta-based software firm OneTrust, which acquired Convercent’s lease when it bought the company in 2021, has 37,000 square feet through July. The company didn’t respond to requests for comment on whether it intends to stay, and Winkler declined to comment.
The building’s second-largest tenant — Denver-based DispatchHealth — has nearly 30,000 square feet through August 2026, per Trepp.
Last summer, two entities that Winkler controls — his development firm Q Factor and his general contracting firm Makers Line — were separately sued and evicted by Industry RiNo Station LLC. Between the two cases, the landlord entity asked judges to award it about $1 million for unpaid rent and attorney fees.
Months after the cases were filed, Winkler personally authored a response to them. Writing on behalf of Q Factor and Makers Line, he said in November that “there are not funds for counsel.” But judges ordered him to hire a lawyer, because companies in Colorado can’t represent themselves except in very unusual circumstances.
In December, the cases were paused to allow “time to explore settlement discussions.” Attorney Christian H. Hendrickson, now with the law firm Taft, wrote at the time that Industry RiNo Station LLC had “gone through a change in management.” Winkler, who lives in the Salt Lake City area, declined to comment on the cases.
Industry RiNo Station is the second of two Industry-branded adaptive reuse shared office buildings that Winkler and partners developed in RiNo in the 2010s. The first was Industry Denver, at 3100 Brighton Blvd. That building sold at a loss for $19 million last year after a loan default.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
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