A $28 million commercial mortgage-backed securities (CMBS) loan secured by an office property in Greenwood Village, Colorado, has been placed into receivership due to imminent default.
The loan is secured by Harlequin Plaza, a two-tower, 330,000-square-foot office building owned by Unico Properties at 7600 East Orchard Road, 13 miles southeast of downtown Denver. The five-story glass building opened in 1981 and remains a Class B office building after a 2013 renovation.
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The $28 million CMBS loan represents 19.66% of the remaining collateral in WFCM-2014-LC16.
Harlequin Plaza was valued at $46.6 million when the CMBS loan was securitized in 2014. Trepp reported that the loan had been current throughout its life until its scheduled maturity default this month.
Occupancy rates at Harlequin Plaza have declined steadily in recent years, dropping from 90% in 2021 to 86% in 2022 and 74% in 2023. The loan's most recent debt service ratio is 1.34x, and the owner is currently considering selling the property, according to a special servicer notice reported by Trepp.
Unico Properties did not respond to a request for comment. The default was first reported by Trepp.
Brian Pascus can be reached at bpascus@commercialobserver.com