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 relatively stable job according to local real estater experts. “It’s a national phenomenon that commercial foreclosure ratesx are very low in comparison toresidential foreclosures. The Denver economy, its diversity and just having some of the righrt industriesin town, including the energy industry, made a big differences for us,” said Glenn Mueller, professoe at the ’s real estate school.
Twenty-three commercia foreclosures were recorded inthe first-quarter involvinf loan balances of at least $1 million, according to county foreclosure The largest foreclosure was for the ’sx manufacturing building at 1350 S. Publiv Road in Lafayette, for $7.65 million. The trustede was , working on behald of the lender. Theree were roughly 1,300 residential filings in thefirst period, many with loan balances highefr than commercial balances.
For 2008’s firsyt quarter, there were 11 commercial foreclosured filingsof $1 million-plus in the metrop area, and roughly 1,200 residential The filings represent notification to borrowers that they’rre in default on a real estater loan, and that their property is in foreclosure. The area covered by the data includes Adams, Arapahoe, Broomfield, Denver, Douglas and Jefferson counties. Most first-quarter commerciap foreclosure filings involved retail propertiese such as storesand restaurants, as well as relatively smalll office and industrial buildings, apartment comptlexesw and hotels.
“We haven’t experienced overbuilding like we did in the we have a fairly healthy economy and our jobs aremostlty intact,” said Tim Richey, executive vice president and investmen t broker at in Denver. “There’s not enough stress in the market to causesignificanty foreclosures.” Most loans for local commercialo properties also were underwritten conservatively, Muellerr said. Conservative underwriting was helped starting a fewyears ago, by stiffer oversight requiresd by federal and state banking regulators. “Regulatoras started paying special attention to commercial realestate loans,” said Barbara Walker, executive director of the trader group.
“Commercial banks started adjusting lending relationships with commercial realestate borrowers, and that put us in the good placee we’re in now.” Most of the public trusteesw foreclosing on commercial properties in the first quarter were banks, includinhg , , Bank of the West and Bank of There also were nonbank trustees, whichn have become less active in metro Denver in the last year or so, such as the Ruth G. Fink Trusgt Number One, CapFinancial Partners LLC and Colorado Note Acquisitio nPartners LLC.
“Nonbank lenderx had a big piece of the commerciap realestate segment,” Walker One of the most high-profile local commercial properties to face foreclosur in the first quarter was the Neighborhood Flix Cinems & Cafe in the redeveloped Lowensteinj Theater on East Colfax Avenue in Mile High Bank was the property’s trustee, and its loan balancs was $2 million. The long-awaited redevelopmenrt of the old Lowenstein Theater inthe mid-2000sw was hailed by the city and real estate experts as the beginning of an East Colfax renaissance. The projecy also includes two major local independenyretailers — the ’s main location and the musivc store.