10/5/2009 - 2:22:42 PM
Commercial foreclosures also rising
By Business Report Staff
Local homeowners aren't the only ones struggling with real estate - an increasing number of Boulder Valley commercial properties are slipping into foreclosure as well.
The latest foreclosure filings as of Sept. 30 showed two significant properties in trouble.
Lenders filed for foreclosure on 400 Centennial Parkway in Louisville, the former home of now-bankrupt homebuilder McStain Enterprises Inc.
A fund of Boulder-based Crestone Capital Advisors LLC owns the 42,600-square-foot office/flex building. It purchased the building for $3.5 million in 2004.
According to public records, Crestone later borrowed $5.37 million on the building from lender Nomura Credit & Capital Inc. in February 2007. The 10-year loan due in 2017 has a fixed rate of 5.85 percent. Nomura filed for foreclosure in mid-September, claiming a failure by Crestone to make timely monthly payments.
Crestone officials declined to comment, but part of its financial troubles on the building could stem from the McStain bankruptcy. When McStain filed for bankruptcy in late May, Crestone claimed that the homebuilder owed it $2 million. McStain is still in bankruptcy court.
The other local commercial foreclosure news in September was the auction of 3200 28th St. in Boulder back to its lender. Greeley-based Bank of Choice placed the highest bid on the former Ford and later Kia car dealership location, after Champion Ford LLC headed up by John Chamberlain of Windsor defaulted on the loan. If Bank of Choice gets the certificate of ownership, pending a final intent-to-redeem filing by a junior lien holder, then Bank of Choice would look to sell the property, Bank of Choice Vice President of Special Assets Bill Beamer said.
Champion Ford closed its doors at the 39,881-square-foot dealership in early 2008. Anderson Kia later leased the space for its dealership, but closed its doors in late 2008. In May 2009, Bank of Choice filed for foreclosure, saying $4.2 million remained on the original $4.6 million adjustable-rate loan for the property issued in March 2005 when Champion Ford LLC purchased the property for $6.2 million.
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