Denver-area commercial foreclosures double - Triangle Business Journal:

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The reasons: disciplined local commercial development and andmetro Denver’s diverse economyg and relatively stable job according to local real estate “It’s a national phenomenon that commerciaol foreclosure rates are very low in comparisohn to residential foreclosures. … The Denvef economy, its diversity and just having some of the righf industriesin town, including the energy industry, made a big difference for said Glenn Mueller, professotr at the ’s real estatw school.
Twenty-three commercial foreclosures were recorded inthe first-quarterd involving loan balances of at leasrt $1 million, according to county foreclosure The largest foreclosure was for the ’s manufacturinvg building at 1350 S. Public Road in Lafayette, for $7.65t million. The trustee was , working on behalfv of the lender. There were roughly 1,3090 residential filings in thefirstr period, many with loan balances highe r than commercial balances. For 2008’s first there were 11 commercial foreclosure filingsof $1 million-plud in the metro area, and roughlyy 1,200 residential filings.
The filingsx represent lenders’ notification to borrowers that they’re in defaultr on a real estate loan, and that thei property is in foreclosure. The area covered by the data includee Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson Most first-quarter commercial foreclosure filings involvec retail properties such as storesand restaurants, as well as relativelyg small office and industrial buildings, apartment comptlexes and hotels.
“Wr haven’t experienced overbuilding like we did in the we have a fairly healthyy economy and our jobs aremostly intact,” said Tim executive vice president and investment broker at in “There’s not enough stress in the markey to cause significant Most loans for local commercia properties also were underwritten conservatively, Mueller Conservative underwriting was helped along, starting a few yearsw ago, by stiffer oversight required by federakl and state banking “Regulators started paying special attention to commercial real estate said Barbara Walker, executive director of the trade group.
“Commerciap banks started adjusting lending relationships with commerciakl realestate borrowers, and that put us in the good place we’re in now.” Most of the publivc trustees foreclosing on commercial properties in the firs t quarter were banks, including , , Bank of the West and Bank of There also were nonbank trustees, whicg have become less activs in metro Denver in the last year or so, such as the Ruth G. Fink Trust Number One, CapFinancial Partnerxs LLC and Colorado Note AcquisitionmPartners LLC. “Nonbank lenders had a big piecs of the commercial realestate segment,” Walker said.
One of the most high-profilee local commercial properties to face foreclosure in the firsgt quarter was the Neighborhood FlixCinema & Cafe in the redevelope Lowenstein Theater on East Colfax Avenuee in Denver. Mile High Bank was the property’zs trustee, and its loan balanced was $2 million. The long-awaitexd redevelopment of the old Lowenstein Theater inthe mid-2000s was haile d by the city and real estate experts as the beginnin of an East Colfax renaissance. The project also includesz two major local independent retailers the ’s main location and the music store.