The owner of two office buildings in southern Aurora has defaulted on a loan that it took over from the property’s previous owner, according to the lender, who wants a receiver installed.
The Cherry Creek Place I and II buildings at 3131 and 3190 S. Vaughn Way, by the Interstate 225-Parker Road interchange, are owned by 3131 South Vaughn Way LP.
The entity, which is affiliated with Austin-based Pennybacker Capital, purchased the buildings in June 2018 for $39.69 million, according to public records.
In connection with that deal, Pennybacker assumed a $32 million loan issued to the structure’s previous owner — Denver-based Northstar Commercial Partners — in December 2016, records show.
That loan, issued by Citigroup, was not due to mature until January 2027, according to the original agreement. Maturity refers to when a loan must be paid off.
But in a lawsuit filed Friday, Wells Fargo Bank — which is now trustee of the loan — said building ownership defaulted on the loan by failing to cure deficiencies related to the property’s “cash management agreement.” As a result of the default, the bank said, it had accelerated the repayment date.
Wells Fargo asked the court to appoint a receiver overseeing the buildings and to authorize it to proceed with foreclosure. Arapahoe County District Judge Darren L. Vahle had yet to rule on the request as of Monday afternoon.
Pennybacker did not respond to a request for comment Monday.
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Pennybacker also owns the nearby Cherry Creek Place III building, at 3151 S. Vaughn Way, having bought that for $6.6 million in early 2019. But records show that building has separate financing.
Dinsmore & Shohl attorneys Chris Brophy and Phoebe Schneider are representing Wells Fargo.
More than a dozen Denver-area office properties are currently in receivership, including the Aurora Corporate Plaza complex further north in Aurora.
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