The building at 1495 Canyon Blvd. in Boulder. (Google Street View)
Expansive’s local real estate problems are expanding.
The Chicago-based coworking chain, which has a downtown Denver property in foreclosure, is now being sued over a loan secured by the company’s Boulder location.
Expansive purchased the building at 1495 Canyon Blvd. in Boulder in January 2018, paying $6.5 million, according to public records. The three-story structure is about 22,500 square feet, according to LoopNet.
In October 2019, Expansive took out a $7.5 million loan from Greenwood Village-based Bellco Credit Union secured by the property. In a lawsuit filed Thursday in Boulder County District Court, Bellco said that Expansive defaulted on that loan in multiple ways, including by failing to make payments on time and failing to maintain specified debt service coverage ratios.
Bellco also claims Expansive “made material misrepresentations to Bellco regarding the Property’s tenants and related Property financials” and failed to get Bellco’s approval before hiring a contractor to make building improvements, despite knowing it didn’t have funds for the work.
In May 2023, according to Bellco’s lawsuit, the credit union and Expansive entered into a “forbearance and loan modification agreement,” in which the company acknowledged the defaults and Bellco agreed to give additional funds for the renovations. That increased the amount the company owed to about $8.5 million.
The forbearance agreement expired in October, and Expansive then defaulted by failing to pay the amounts owed, according to Bellco.
Bellco is asking the judge to allow the company to foreclose on the property. Kutak Rock attorneys Jeremy Peck and Kathleen Guilfoyle are representing the lender.
Expansive also owns Trinity Place at 1801 Broadway in downtown Denver. (BusinessDen file)
Expansive said it has 3.8 million square feet of space in 34 cities. The company — previously known as Level Office, and then Novel Working — is unusual among major coworking companies in that it generally owns its real estate.
Locally, in addition to 1495 Canyon Blvd., the company also owns 1801 Broadway and 1630 Welton St. in downtown Denver, and 8400 E. Crescent Parkway in Greenwood Village. It is the 1801 Broadway building that is already in foreclosure.
Expansive has faced similar situations in other markets. A building the company owned in Washington, D.C. sold at auction last year after Expansive defaulted on a $65 million loan, according to the Washington Business Journal. The company also recently surrendered one of its Chicago properties via a deed in lieu of foreclosure, according to The Real Deal.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
The building at 1495 Canyon Blvd. in Boulder. (Google Street View)
Expansive’s local real estate problems are expanding.
The Chicago-based coworking chain, which has a downtown Denver property in foreclosure, is now being sued over a loan secured by the company’s Boulder location.
Expansive purchased the building at 1495 Canyon Blvd. in Boulder in January 2018, paying $6.5 million, according to public records. The three-story structure is about 22,500 square feet, according to LoopNet.
In October 2019, Expansive took out a $7.5 million loan from Greenwood Village-based Bellco Credit Union secured by the property. In a lawsuit filed Thursday in Boulder County District Court, Bellco said that Expansive defaulted on that loan in multiple ways, including by failing to make payments on time and failing to maintain specified debt service coverage ratios.
Bellco also claims Expansive “made material misrepresentations to Bellco regarding the Property’s tenants and related Property financials” and failed to get Bellco’s approval before hiring a contractor to make building improvements, despite knowing it didn’t have funds for the work.
In May 2023, according to Bellco’s lawsuit, the credit union and Expansive entered into a “forbearance and loan modification agreement,” in which the company acknowledged the defaults and Bellco agreed to give additional funds for the renovations. That increased the amount the company owed to about $8.5 million.
The forbearance agreement expired in October, and Expansive then defaulted by failing to pay the amounts owed, according to Bellco.
Bellco is asking the judge to allow the company to foreclose on the property. Kutak Rock attorneys Jeremy Peck and Kathleen Guilfoyle are representing the lender.
Expansive also owns Trinity Place at 1801 Broadway in downtown Denver. (BusinessDen file)
Expansive said it has 3.8 million square feet of space in 34 cities. The company — previously known as Level Office, and then Novel Working — is unusual among major coworking companies in that it generally owns its real estate.
Locally, in addition to 1495 Canyon Blvd., the company also owns 1801 Broadway and 1630 Welton St. in downtown Denver, and 8400 E. Crescent Parkway in Greenwood Village. It is the 1801 Broadway building that is already in foreclosure.
Expansive has faced similar situations in other markets. A building the company owned in Washington, D.C. sold at auction last year after Expansive defaulted on a $65 million loan, according to the Washington Business Journal. The company also recently surrendered one of its Chicago properties via a deed in lieu of foreclosure, according to The Real Deal.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
