The Highline Lofts apartment complex at 456 S. Ironton St. in Aurora. (Google Maps)
A local landlord has lost one apartment complex in Aurora to foreclosure, and a second was recently placed into receivership.
Summit Communities bought both the Highline Lofts at 456 S. Ironton St. and Arboreta Apartments at 2038 S. Vaughn Way in 2022.
The company paid $29.1 million for the Highline Lofts, which has 112 units, and $69.5 million for Arboreta’s 268 units.
Summit financed both deals — and subsequently defaulted, according to its lenders.
MF1, the lender for Highline Lofts, took ownership of the property last week through a foreclosure auction held by Arapahoe County.
The lender gave Summit a $25.5 million loan in 2022 that needed to be repaid by March 2024, records show. MF1 sued later in 2024, saying Summit hadn’t paid off the loan. A receiver was appointed, and MF1 initiated the foreclosure process last May.
Summit’s Arboreta complex, meanwhile, which is 4 miles away, is now being overseen by Thomas Dwyer of Transwestern. A judge appointed him receiver of the property last month, at the request of a different lender.
Summit took out a $58 million loan to buy the property in 2022, records show. It needed to be repaid by May 2025.
At the time of the acquisition, Summit said it planned to spend $4 million on interior renovations so that each unit would have granite countertops and a washer and dryer. Founder Jeff Young also told the Denver Business Journal that he planned to raise rents by $150 to $200 per unit.
In a lawsuit last month, however, the lender said that Summit stopped making its interest-only loan payments in February 2025 and that a receiver was needed to avoid property damage.
“Borrower recently informed Lender that as a result of there being insufficient cash flow generated from the Property to pay expenses at the Property, Borrower will be terminating all employees at the Property, leaving the tenants at the Property in potential harm with the likelihood of utilities and other services being discontinued,” the lender said in a Dec. 23 filing.
Summit didn’t respond to requests for comment last week. According to its website, in addition to the Arboreta Apartments, the company owns seven other Denver-area apartment complexes, including 1410 and 1430 S. Albion St. in Denver.
Loan distress is increasing in the multifamily sector. An influx of new supply has pushed rents down and concessions up to a 15-year high as of the third quarter last year, according to the Apartment Association of Metro Denver.
Foreclosure proceedings were also recently initiated for the Signalmen Apartments building at 1259 Newton St. in Denver, which was purchased in 2022 by an affiliate of Denver’s Armada Venture Partners for $17.6 million. The lender, M360 Community Fund, says it is owed $12.6 million on a loan taken out that year.
In November, the California-based owner of a 301-unit apartment complex in Denver’s RiNo neighborhood surrendered it to a lender.
The Highline Lofts apartment complex at 456 S. Ironton St. in Aurora. (Google Maps)
A local landlord has lost one apartment complex in Aurora to foreclosure, and a second was recently placed into receivership.
Summit Communities bought both the Highline Lofts at 456 S. Ironton St. and Arboreta Apartments at 2038 S. Vaughn Way in 2022.
The company paid $29.1 million for the Highline Lofts, which has 112 units, and $69.5 million for Arboreta’s 268 units.
Summit financed both deals — and subsequently defaulted, according to its lenders.
MF1, the lender for Highline Lofts, took ownership of the property last week through a foreclosure auction held by Arapahoe County.
The lender gave Summit a $25.5 million loan in 2022 that needed to be repaid by March 2024, records show. MF1 sued later in 2024, saying Summit hadn’t paid off the loan. A receiver was appointed, and MF1 initiated the foreclosure process last May.
Summit’s Arboreta complex, meanwhile, which is 4 miles away, is now being overseen by Thomas Dwyer of Transwestern. A judge appointed him receiver of the property last month, at the request of a different lender.
Summit took out a $58 million loan to buy the property in 2022, records show. It needed to be repaid by May 2025.
At the time of the acquisition, Summit said it planned to spend $4 million on interior renovations so that each unit would have granite countertops and a washer and dryer. Founder Jeff Young also told the Denver Business Journal that he planned to raise rents by $150 to $200 per unit.
In a lawsuit last month, however, the lender said that Summit stopped making its interest-only loan payments in February 2025 and that a receiver was needed to avoid property damage.
“Borrower recently informed Lender that as a result of there being insufficient cash flow generated from the Property to pay expenses at the Property, Borrower will be terminating all employees at the Property, leaving the tenants at the Property in potential harm with the likelihood of utilities and other services being discontinued,” the lender said in a Dec. 23 filing.
Summit didn’t respond to requests for comment last week. According to its website, in addition to the Arboreta Apartments, the company owns seven other Denver-area apartment complexes, including 1410 and 1430 S. Albion St. in Denver.
Loan distress is increasing in the multifamily sector. An influx of new supply has pushed rents down and concessions up to a 15-year high as of the third quarter last year, according to the Apartment Association of Metro Denver.
Foreclosure proceedings were also recently initiated for the Signalmen Apartments building at 1259 Newton St. in Denver, which was purchased in 2022 by an affiliate of Denver’s Armada Venture Partners for $17.6 million. The lender, M360 Community Fund, says it is owed $12.6 million on a loan taken out that year.
In November, the California-based owner of a 301-unit apartment complex in Denver’s RiNo neighborhood surrendered it to a lender.
