Three prominent commercial real estate properties in the states of Colorado, Oregon and Maryland are scheduled to go to foreclosure auctions in the coming weeks if their owners are not able to carry out the necessary remedies to save these properties.
In Loveland in Northern Colorado, the Promenade Shops, which accounts for almost 10 percent of Loveland’s tax base, is set to be sold at an auction in March. The developer of the shopping complex, Centerra Lifestyle Center, has not found the money to pay its almost $113 million balance on the $116 million it borrowed from KeyBank.
The Promenade Shops has been in foreclosure since last year, but KeyBank gave the developer until March 16 to cure the problem. According to Jay Hardy, manager of Centerra, if the retail center goes to auction, business will go on as usual at Promenade. He added that Centerra partners Poag & McEwen and McWhinney could even participate in the bidding.
Part of the reason for the difficulties of the owners are slumping retail sales despite the property being anchored by Best Buy, Macy’s, Barnes & Noble and Metrolux Theaters and being occupied by more than 50 other specialty shops.
Another building following the fate of many other commercial real estate properties in foreclosure is the high-end CityView Belmont condo complex in Portland, Oregon. Based on papers filed by Bank of America in Multnomah County, CityView has defaulted on its $28.1 million loan. The bank stated that it will sell the property at a public auction in June if CityView is not able to pay its loan before the auction.
CityView is a relatively well-known investment fund because it is headed by former HUD Secretary Henry Cisneros. The firm is also funded partially by the California government employees pension fund.
In Baltimore, Maryland, the business park Hollander 95 is also set to go to auction after the developer, Hollander Rock, failed to pay its $11.7 million loan owed to M&T Bank. Hollander started construction in 2007 after buying the land from the city of Baltimore for $4 million. It planned to construct a distribution center, a manufacturing hub and a warehouse, but it was able to build only a warehouse.
According to analysts, commercial real estate properties fell into financial troubles because of failed earnings projections. The expected occupancy rate, rental earnings and business activity levels were all wiped out by the recession.
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