A Lincoln Park apartment building is in receivership after its developer failed to pay off a loan.
The Pop Denver building at 655 N. Santa Fe Drive was developed by First Stone Development, led by Lenny Taub.
The five-story, 123-unit building broke ground in 2021 and was completed in mid-2023. In December of that year, First Stone took out a $35 million loan from Construction Loan Services II.
But First Stone didn’t pay the loan off by its maturity date, according to a mortgage trust affiliated with Construction Loan Services.
Saluda Grade Alternative Mortgage Trust 2021-WL1 requested a receiver for the building in a lawsuit filed last week against First Stone’s Santa Fe Drive Development LLC.
“The Note is in default for the failure of Borrower to pay the Note in full by the maturity date thereof, to make interest payments when due, to pay the real estate taxes and assessments on the Property, and to maintain and preserve the Property, among other defaults,” the lender said.
The lender proposed that Cordes & Co. be named the receiver. Denver District Judge Kandace Gerdes signed off on the request the same day.
Denver’s apartment market is rough for landlords, who are dealing with an influx of new supply that is pushing down rents, and thus property values, all while interest rates are high. Other multifamily properties in receivership include 10101 Washington St. in Thornton and 7500 Dakin St. in Adams County, both of which are owned by Denver-based Summit Communities.
Taub initially intended for Pop Denver to be condominiums. But he switched to apartments midconstruction in 2022, when rising interest rates scared off buyers. A broker he’d hired to sell the condos sued First Stone in early 2025. That litigation ended last November with the case dismissed at the parties’ joint request. It’s unclear whether there was a settlement.
