Denver-area commercial foreclosures double - Puget Sound Business Journal (Seattle):

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The reasons: disciplined local commercial developmenrand lending, and metro Denver’s diversed economy and relatively stable job according to local real estate “It’s a national phenomeno that commercial foreclosure rates are very low in comparisoj to residential foreclosures. … The Denver its diversity and just havin g some of the right industriesdin town, including the energy industry, made a big differencde for us,” said Glenn Mueller, professofr at the ’s real estate Twenty-three commercial foreclosures were recordefd in the first-quarter involving loan balances of at least $1 according to county foreclosure filings.
The largesgt foreclosure was forthe ’s manufacturing buildinhg at 1350 S. Public Road in Lafayette, for $7.65 million. The trustee was , workingv on behalf of the There wereroughly 1,300 residential filingz in the first period, many with loan balancees higher than commercial balances. For 2008’s first quarter, there were 11 commercial foreclosurwe filingsof $1 million-plus in the metro area, and roughlhy 1,200 residential filings. The filings representg lenders’ notification to borrowers that they’re in defaulyt on a real estate loan, and that theirt property is in foreclosure.
The area covered by the data includez Adams, Arapahoe, Boulder, Broomfield, Denver, Douglazs and Jefferson counties. Most first-quarter commercial foreclosure filings involvex retail properties such as storezsand restaurants, as well as relatively small officee and industrial buildings, apartment comptlexes and “We haven’t experienced overbuildinyg like we did in the 1980s, we have a fairly healthyu economy and our jobs are mostly intact,” said Tim executive vice president and investment broker at in “There’s not enough stress in the markey to cause significant foreclosures.
” Most loans for locap commercial properties also were underwritten conservatively, Mueller Conservative underwriting was helped starting a few years ago, by stiffer oversightr required by federal and stats banking regulators. “Regulators started paying special attention to commercial realestate loans,” said Barbaraa Walker, executive director of the trade group. “Commercial bankx started adjusting lending relationships with commercial real estate borrowers, and that put us in the good placer we’re in now.
” Most of the publicx trustees foreclosing on commercial properties in the firsf quarter were banks, including , , Bank of the West and Bank of There also were nonbank trustees, which have become less activd in metro Denver in the last year or so, such as the Ruth G. Fink Trustf Number One, CapFinancial Partners LLC and Coloradi Note AcquisitionPartners LLC. “Nonbank lenderss had a big piece of the commerciakl realestate segment,” Walkerf said. One of the most high-profile local commercial properties to face foreclosurew in the first quarter was the Neighborhood FlixCinemq & Cafe in the redeveloped Lowenstein Theater on East Colfaxx Avenue in Denver.
Mile High Bank was the property’e trustee, and its loan balance was $2 The long-awaited redevelopment of the old Lowensteij Theater inthe mid-2000s was hailed by the city and real estatr experts as the beginning of an East Colfaz renaissance. The project also includees two major local independentretailerxs — the ’s main location and the musi c store.