Industry RiNo Station is located at 3827 Lafayette St. in RiNo. (BusinessDen file)
Industry RiNo Station is the latest Denver office building to enter receivership.
Wilmington Trust, trustee for the property’s $60 million loan, requested last week that Jeremiah Foster of Resolute be appointed to oversee the 150,000-square-foot office complex at 3827 Lafayette St. in Denver.
Denver District Court Judge Jill Deborah Dorancy approved the request one day later.
BusinessDen reported last month that Industry RiNo Station ownership hadn’t made payments on its loan since December, and that the loan was transferred to special servicing.
Wilmington Trust’s loan cited the lack of a January loan in its lawsuit requesting the receiver. The firm also said ownership had failed to pay operating expenses, including for JLL to manage the property, and that a lien had been recorded against the property.
Wilmington Trust said it accelerated the balance due under the loan documents in late March. That amount was $62.08 million as of April 1.
The property is owned by Industry RiNo Station LLC. Jason Winkler, who developed the complex that opened in 2017, previously told BusinessDen that he owns about half the property, with the remainder owned by another family.
“We have months of interest payments sitting in reserve accounts with the lender, but those dollars cannot be used for paying the interest,” he told BusinessDen in March. “We are currently working with the lender to resolve this crux and hope to be back on track soon.”
On Wednesday, Winkler said he welcome the receiver.
“Given this unique situation, bringing in a receiver is actually a good thing – and this is different from the typical circumstances that bring in a receiver,” he said.
“Industry RiNo Station has a vibrant community of tenants that continue to grow and provide one another energy and value – and the receiver will be able to resolve the gridlock that has developed between the lender and the partners to keep the asset stable and vibrant while these issues are resolved.”
The building’s loan, originated by JPMorgan Chase, was issued in 2022 and originally set to mature in 2032.
Industry RiNo Station is 75% leased, but its largest two tenants have leases that expire this year and next, according to Trepp, a firm that tracks commercial real estate loans.
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 building’s second-largest tenant, Denver-based DispatchHealth, has nearly 30,000 square feet through August 2026.
More than a dozen Denver-area office buildings are currently in receivership, including the Wells Fargo Center.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
Read more: Denver’s reluctant landlords: Lenders taking growing number of office buildings
Industry RiNo Station is located at 3827 Lafayette St. in RiNo. (BusinessDen file)
Industry RiNo Station is the latest Denver office building to enter receivership.
Wilmington Trust, trustee for the property’s $60 million loan, requested last week that Jeremiah Foster of Resolute be appointed to oversee the 150,000-square-foot office complex at 3827 Lafayette St. in Denver.
Denver District Court Judge Jill Deborah Dorancy approved the request one day later.
BusinessDen reported last month that Industry RiNo Station ownership hadn’t made payments on its loan since December, and that the loan was transferred to special servicing.
Wilmington Trust’s loan cited the lack of a January loan in its lawsuit requesting the receiver. The firm also said ownership had failed to pay operating expenses, including for JLL to manage the property, and that a lien had been recorded against the property.
Wilmington Trust said it accelerated the balance due under the loan documents in late March. That amount was $62.08 million as of April 1.
The property is owned by Industry RiNo Station LLC. Jason Winkler, who developed the complex that opened in 2017, previously told BusinessDen that he owns about half the property, with the remainder owned by another family.
“We have months of interest payments sitting in reserve accounts with the lender, but those dollars cannot be used for paying the interest,” he told BusinessDen in March. “We are currently working with the lender to resolve this crux and hope to be back on track soon.”
On Wednesday, Winkler said he welcome the receiver.
“Given this unique situation, bringing in a receiver is actually a good thing – and this is different from the typical circumstances that bring in a receiver,” he said.
“Industry RiNo Station has a vibrant community of tenants that continue to grow and provide one another energy and value – and the receiver will be able to resolve the gridlock that has developed between the lender and the partners to keep the asset stable and vibrant while these issues are resolved.”
The building’s loan, originated by JPMorgan Chase, was issued in 2022 and originally set to mature in 2032.
Industry RiNo Station is 75% leased, but its largest two tenants have leases that expire this year and next, according to Trepp, a firm that tracks commercial real estate loans.
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 building’s second-largest tenant, Denver-based DispatchHealth, has nearly 30,000 square feet through August 2026.
More than a dozen Denver-area office buildings are currently in receivership, including the Wells Fargo Center.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
Read more: Denver’s reluctant landlords: Lenders taking growing number of office buildings
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