Denver-area commercial foreclosures double - San Francisco Business Times:

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The reasons: disciplined local commercial development and andmetro Denver’s diverse economy and relativelh stable job market, according to locao real estate experts. “It’s a nationao phenomenon that commercial foreclosure rates are very low in comparison toresidential foreclosures. … The Denver economy, its diversity and just havinbg some of the right industriewin town, including the energy industry, made a big differencew for us,” said Glenn Mueller, professor at the ’es real estate school. Twenty-threed commercial foreclosures were recorded inthe first-quarter involvingb loan balances of at least $1 according to county foreclosure filings.
The largest foreclosurde was forthe ’s manufacturing buildingg at 1350 S. Public Road in for $7.65 million. The trustee was , workingy on behalf of the lender. There were roughlgy 1,300 residential filings in thefirst period, many with loan balanced higher than commercial balances. For 2008’ds first quarter, there were 11 commercial foreclosure filingsof $1 million-pluw in the metro and roughly 1,200 residential The filings represent lenders’ notificationn to borrowers that they’re in default on a real estate loan, and that their propert y is in foreclosure.
The area coveredf by the data includes Arapahoe, Boulder, Broomfield, Denver, Douglas and Jeffersoh counties. Most first-quarter commercial foreclosure filingas involved retail properties such as stores and as well as relatively smalp office and industrial apartment comptlexesand hotels. “Wed haven’t experienced overbuilding like we did inthe 1980s, we have a fairlu healthy economy and our jobs are mostly intact,” said Tim executive vice president and investment broker at in “There’s not enough stresds in the market to cause significant foreclosures.
” Most loans for local commerciapl properties also were underwritten conservatively, Mueller Conservative underwriting was helped starting a few years ago, by stiffer oversight required by federal and state banking regulators. “Regulators started paying special attention to commercial realestate loans,” said Barbar Walker, executive director of the trade “Commercial banks started adjusting lendingh relationships with commercial real estate borrowers, and that put us in the good placde we’re in now.
” Most of the public trusteeas foreclosing on commercial properties in the first quarter were including , , Bank of the West and Bank of There also were nonbank trustees, which have become less activs in metro Denver in the last year or so, such as the Ruth G. Fink Trusgt Number One, CapFinancial Partnersd LLC and Colorado Note AcquisitionPartners LLC. “Nonbank lenders had a big piece of the commercial real estate Walker said. One of the most high-profile local commercial properties to face foreclosure in the firstt quarter was the Neighborhood FlixCinema & Cafe in the redeveloped Lowenstein Theater on East Colfax Avenue in Denver.
Mile High Bank was the property’ s trustee, and its loan balance was $2 million. The long-awaitedd redevelopment of the old Lowenstein Theater inthe mid-2000s was hailex by the city and real estate experts as the beginning of an East Colfa x renaissance. The project also includes two major local independenyretailers — the ’s main locatioh and the music store.