An office landlord in Highlands Ranch has defaulted on the property’s loan.
San Diego, California-based Presidio Property Trust paid $25.3 million in 2015 for Shea Center II, which has 120,000 square feet over 4 stories at 1805 Shea Center Drive. The company financed the deal with a $17.7 million loan from Bancorp Bank.
Earlier this month, Wells Fargo, now the loan’s trustee, sued Presidio, saying the company had failed to pay off the loan by Jan. 5 of this year as required.
The bank requested that a receiver be appointed to oversee the building and preserve its value. Wells Fargo said that was needed “especially in today’s office market where excess office space is abundant due to hybrid home/office work arrangements and landlords face significant pressure to lower rents and provide concessions in order to retain existing tenants and solicit new tenants.”
Wells Fargo, represented by William Meyer of Polsinelli, asked that the job be given to Trigild IVL. A judge approved that request Feb. 13.
Presidio did not respond to a request for comment.
Trigild will be paid a receivership fee of $400 an hour, with a minimum of $4,000 per month, according to court documents. It will also get $500 per month in accounting fees. If the property is ultimately sold via receivership sale, Trigild will receive 0.25% of the gross sale price.
The Shea Center II building, which is just south of Highway 470, was built in 2002. Tenants include the Robinson & Henry law firm and Heritage Title Co.
At the end of 2022, the building lost its largest tenant, Halliburton, which had 45,000 square feet, according to an SEC filing.
Presidio owns two other office buildings in Colorado, according to its website. It bought the Arapahoe Service Center II building in Centennial in 2014 and One Park Centre in Westminster in 2015.
Read more from our partner, BusinessDen.
Get more business news by signing up for our Economy Now newsletter.
