The office building at 6300 S. Syracuse Way in Centennial. (Google Street View)
A 350,000-square-foot office building in Centennial is the latest in the region to default on its loans, according to the lender, who said it intends to foreclose on the property.
Florida-based America’s Capital Partners purchased the seven-story Cascades building at 6300 S. Syracuse Way in February 2017, paying $63 million, according to public records.
The firm financed the purchase with two loans totaling $44 million from an affiliate of New York-based Voya Financial, according to a lawsuit the lender filed Monday. The loan agreements included a call option, which stated that the lender could order the loans be paid off on March 1 of this year.
Last July, Voya informed America’s Capital Partners that it was exercising the call option, the lawsuit states. But when the calendar turned to March last week, the firm failed to put up the necessary cash.
America’s Capital Partners also defaulted last year when it failed to make repairs to the property’s parking garage, according to the lender.
The lender believes its loans are “undersecured,” meaning the property is worth less than the remaining balance, which isn’t specified in the lawsuit.
The lawsuit asked the court to appoint Steve Schwab of Cushman & Wakefield as receiver to oversee the building, which was constructed in 1984. A judge had yet to rule on that request as of Tuesday afternoon, but such requests are typically granted.
Cascades has about 135,000 square feet of vacant space, according to CoStar, meaning the building is 60 percent leased.
The CEO of America’s Capital Partners did not respond to a request for comment on Tuesday. In addition to Cascades, the company also owns the 260,000-square-foot Tuscany Plaza office building just down the street at 6312 S. Fiddlers Green Circle in Greenwood Village. The firm paid $64.85 million for that property in 2019.
Voya is represented by Polsinelli attorney William Meyer, who declined to comment.
Cascades is poised to be the sixth building in the southern suburbs to enter receivership following default in the past year. Industrywide, landlords have generally been challenged by reduced demand for office space and higher interest rates, which have made it more difficult to refinance, get a new loan or find a buyer when an existing loan comes due.
Read more (newly updated): Troubled towers: Breaking down Denver’s distressed office properties
The office building at 6300 S. Syracuse Way in Centennial. (Google Street View)
A 350,000-square-foot office building in Centennial is the latest in the region to default on its loans, according to the lender, who said it intends to foreclose on the property.
Florida-based America’s Capital Partners purchased the seven-story Cascades building at 6300 S. Syracuse Way in February 2017, paying $63 million, according to public records.
The firm financed the purchase with two loans totaling $44 million from an affiliate of New York-based Voya Financial, according to a lawsuit the lender filed Monday. The loan agreements included a call option, which stated that the lender could order the loans be paid off on March 1 of this year.
Last July, Voya informed America’s Capital Partners that it was exercising the call option, the lawsuit states. But when the calendar turned to March last week, the firm failed to put up the necessary cash.
America’s Capital Partners also defaulted last year when it failed to make repairs to the property’s parking garage, according to the lender.
The lender believes its loans are “undersecured,” meaning the property is worth less than the remaining balance, which isn’t specified in the lawsuit.
The lawsuit asked the court to appoint Steve Schwab of Cushman & Wakefield as receiver to oversee the building, which was constructed in 1984. A judge had yet to rule on that request as of Tuesday afternoon, but such requests are typically granted.
Cascades has about 135,000 square feet of vacant space, according to CoStar, meaning the building is 60 percent leased.
The CEO of America’s Capital Partners did not respond to a request for comment on Tuesday. In addition to Cascades, the company also owns the 260,000-square-foot Tuscany Plaza office building just down the street at 6312 S. Fiddlers Green Circle in Greenwood Village. The firm paid $64.85 million for that property in 2019.
Voya is represented by Polsinelli attorney William Meyer, who declined to comment.
Cascades is poised to be the sixth building in the southern suburbs to enter receivership following default in the past year. Industrywide, landlords have generally been challenged by reduced demand for office space and higher interest rates, which have made it more difficult to refinance, get a new loan or find a buyer when an existing loan comes due.
Read more (newly updated): Troubled towers: Breaking down Denver’s distressed office properties
