The Gateway Plaza at Meridian building is located at 9800 S. Meridian Blvd. in Douglas County. (Google Street View)
A Portland, Oregon-based firm has defaulted on the loan for a second office building it owns in Douglas County.
Felton Properties, which bought the Gateway Plaza at Meridian building at 9800 S. Meridian Blvd. in 2016, defaulted on the building’s $17 million loan by failing to make the required payments starting last July, according to a lawsuit filed this month by the lender’s trustee.
The same trustee, Wilmington Trust, sued Felton in December over a similar situation at the company’s Meridian One building, which is located across the street from the Gateway building.
The four-story Gateway building is about 142,000 square feet and was built in the mid-1990s, according to LoopNet.
Felton bought the property for $21.55 million in December 2016, nearly three years after purchasing the Meridian building, records show. The company financed the Gateway acquisition with a $17.05 million loan from Barclays Bank.
The building is now vacant.
“No tenants currently occupy the Property, there is no income being generated by the Property, and the amount payable under the Loan is greater than the current value of the Property,” Wilmington Trust wrote in court documents.
Felton CEO Matthew Felton did not respond to a request for comment.
In addition to failing to make payments in recent months, when the property’s debt service coverage ratio fell too low by late 2022, Felton also failed to pay rent it received at the time into a specific account as required by the loan agreement, according to Wilmington Trust.
Wilmington Trust, represented by Polsinelli attorney William Meyer, filed its lawsuit on Jan. 12 and requested Judy Duran of CBRE be appointed as receiver to oversee the property. A judge agreed to that request on Jan. 17.
Wilmington Trust said it intends to proceed with foreclosure or a deed-in-lieu of foreclosure.
Duran already serves as receiver for the Meridian One building. The two structures are the only properties that Felton owns in Colorado, according to the firm’s website.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
The Gateway Plaza at Meridian building is located at 9800 S. Meridian Blvd. in Douglas County. (Google Street View)
A Portland, Oregon-based firm has defaulted on the loan for a second office building it owns in Douglas County.
Felton Properties, which bought the Gateway Plaza at Meridian building at 9800 S. Meridian Blvd. in 2016, defaulted on the building’s $17 million loan by failing to make the required payments starting last July, according to a lawsuit filed this month by the lender’s trustee.
The same trustee, Wilmington Trust, sued Felton in December over a similar situation at the company’s Meridian One building, which is located across the street from the Gateway building.
The four-story Gateway building is about 142,000 square feet and was built in the mid-1990s, according to LoopNet.
Felton bought the property for $21.55 million in December 2016, nearly three years after purchasing the Meridian building, records show. The company financed the Gateway acquisition with a $17.05 million loan from Barclays Bank.
The building is now vacant.
“No tenants currently occupy the Property, there is no income being generated by the Property, and the amount payable under the Loan is greater than the current value of the Property,” Wilmington Trust wrote in court documents.
Felton CEO Matthew Felton did not respond to a request for comment.
In addition to failing to make payments in recent months, when the property’s debt service coverage ratio fell too low by late 2022, Felton also failed to pay rent it received at the time into a specific account as required by the loan agreement, according to Wilmington Trust.
Wilmington Trust, represented by Polsinelli attorney William Meyer, filed its lawsuit on Jan. 12 and requested Judy Duran of CBRE be appointed as receiver to oversee the property. A judge agreed to that request on Jan. 17.
Wilmington Trust said it intends to proceed with foreclosure or a deed-in-lieu of foreclosure.
Duran already serves as receiver for the Meridian One building. The two structures are the only properties that Felton owns in Colorado, according to the firm’s website.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
