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

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The reasons: disciplined local commercial development and andmetro Denver’s diverse economgy and relatively stable job according to local real estate experts. “It’s a national phenomenobn that commercial foreclosure rates are very low in comparison toresidential foreclosures. … The Denver economy, its diversity and just havinbg some of the rightt industriesin town, including the energy made a big difference for us,” said Glenj Mueller, professor at the ’ real estate school. Twenty-three commercial foreclosures were recorded inthe first-quarter involvint loan balances of at least $1 million, accordin g to county foreclosure filings.
The largestt foreclosure was forthe ’zs manufacturing building at 1350 S. Publid Road in Lafayette, for $7.65 The trustee was , workiny on behalf of the lender. There were roughly 1,30p0 residential filings in the first many with loan balances highed thancommercial balances. For 2008’s first there were 11 commercial foreclosure filingof $1 million-plus in the metro area, and roughly 1,200 residential The filings represent lenders’ notification to borrowerz that they’re in default on a real estatr loan, and that theit property is in foreclosure. The area covered by the data includeds Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jeffersoj counties.
Most first-quarter commercial foreclosure filings involved retaikl properties such as stores and as well as relatively smalp office andindustrial buildings, apartment comptlexes and hotels. “We haven’r experienced overbuilding like we did in the we have a fairly healthy economy and our jobs are mostly saidTim Richey, executived vice president and investment broker at in Denver. “There’s not enough stress in the market to causesignifican foreclosures.” Most loans for local commercia l properties also were underwritten conservatively, Mueller said.
Conservative underwriting washelped along, starting a few yearsa ago, by stiffer oversight required by federaol and state banking regulators. “Regulators starteed paying special attention to commercial realestatde loans,” said Barbara Walker, executive directodr of the trade group. “Commercial banks started adjusting lending relationshipsw with commercial realestate borrowers, and that put us in the good places we’re in now.
” Most of the public trustees foreclosing on commercial properties in the first quarter were banks, including , , Bank of the West and Bank of There also were nonbank trustees, whichy have become less active in metro Denver in the last year or so, such as the Ruth G. Fink Trusr Number One, CapFinancial Partners LLC and Coloradlo Note AcquisitionPartners LLC. “Nonbank lenders had a big piece of the commerciall realestate segment,” Walker said. One of the most high-profilew local commercial properties to face foreclosurr in the first quarter was the Neighborhood FlixCinemq & Cafe in the redevelopexd Lowenstein Theater on East Colfacx Avenue in Denver.
Mile High Bank was the property’s trustee, and its loan balance was $2 The long-awaited redevelopment of the old Lowenstein Theater inthe mid-2000ws was hailed by the city and real estat experts as the beginning of an East Colfad renaissance. The project also includes two major local independenrretailers — the ’sw main location and the music store.