The former U.S. Bank Building, located at 918 17th Street in Denver, Colorado has been sold by its lender to Stonebridge Cos. for $4.5 million, or about $43 psf. Patrick Devereaux, a broker with Cushman & Wakefield, sold the property on behalf of its lender, Capmark Finance. Capmark foreclosed on its previous owner, CORUM Real Estate, in June of 2009. According to a report in the Denver Post:
U.S. Bank’s timing to move out of the building at 918 17th St. about two years ago couldn’t have been worse for Mike Komppa.
The founder and president of Corum Real Estate Group couldn’t find another tenant for the historic 103,840-square-foot building.
He carried it for more than a year, but with no cash flow he couldn’t afford the loan payments. He listed it for $15 million and had it under contract twice. But neither buyer could secure financing.
Komppa was forced to give the property back to lender Capmark Finance in June. “We thought we could refinance it and do a renovation on the building… but financing just kept getting worse,” he said. “We just kind of ran up the white flag and gave the lender back the building.”
Businesses leaving space vacant as they rein in spending are putting commercial real-estate owners nationwide in similar situations.
Stonebridge Cos. plans to convert the vacant office building into a hotel. “[We are] considering building several more floors on top of the six-story building, constructed around 1915, said Navin Dimond, the company’s president and chief executive. Stonebridge has about 6,000 rooms in 40 hotels nationwide.”