A 50-unit multifamily affordable housing property in the heart of Littleton is up for auction.
Littleton Main Street LLC, the complex’s owner, and Terra Management Group LLC, the property management company, have both filed for chapter 11 bankruptcy protection, according to bankruptcy court case documents.
Bids for the apartments, 2350 W. Main St., will be taken until Nov. 15, with the minimum bid being $6.2 million.
Keen-Summit Capital Partners LLC, a real estate brokerage and investment banking firm, along with Colliers International Denver, a commercial real estate provider, are conducting the bankruptcy auction.
“Built in 1999, the Main Street Apartments are located in the heart of downtown Littleton, offering residents the benefit of restaurants, shopping and light rail access all within a few blocks of the community,” said Craig Stack, senior vice president of Colliers International Denver, in a Thursday morning news release.
Ten miles south of Denver, the property is surrounded by over 1,400 acres of green space and 200 miles of trails. The residential building spans over 37,000 square feet and consists of one- and two-bedroom units, averaging 755 square feet, according to the Colliers website about the auction.
The property’s units operate under Section 42 Low-Income Housing Tax Credit program.
Managing director of Keen-Summit Capital Partners David Levy said the first floor retail space is owned separately and is not a part of the sale — only the multifamily units above.
“The key thing here is that whoever is buying this is going to be continuing to preserve the availability of affordable housing,” he said.
Levy said 96% of the 50 units are occupied by tenants. The sale will not impact the lease of the tenants. Additionally, he said if the property does not receive a qualified bid, the property’s Stalking Horse Bidder is C2 Capital Partners LLC, a privately owned Colorado-based real estate firm, according to the bankruptcy court case documents.
A stalking horse bid is an initial bid on the assets of a bankrupt company. Chosen by the bankrupt company, it becomes the minimum amount the assets can be purchased for.
The bankruptcy filing is due to circumstances unrelated to the property’s performance, according to Levy.
The auction is later this month.
