The bank is likely to take the title of Promenade Shops when no one is bidding at foreclosure auctions

BizWest file photo.

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The room was silent when Lauren Mehl, deputy public curator, called for tenders on the ailing shops of Promenade in Centerra on Wednesday morning.

The stores were the subject of a foreclosure auction, conducted by the Public Trustee, in an attempt by the mall lender to recover nearly $ 87 million from mall owner DRA Advisors LLC, operating under the names of G&I VI Promenade LLC and G&I VI Retail Prom LLC.

The lack of offers likely means that the lender, Wilmington Trust NA, a trustee of Natixis Commercial Mortgage Securities Trust, will guarantee title to the property once the repayment periods have expired. It is not clear what he will do. William Meyer, a Polsinelli lawyer representing the lenders, did not return a phone call after the sale.

The Promenade Shops comprises 493,172 square feet of retail and entertainment space on the northeast corner of Interstate 25 and US Highway 34.

Wilmington Trust NA launched a foreclosure in February, claiming the owner defaulted on an $ 83.65 million promissory note.

Prior to the sale, Meyer told BizWest that the mall owners were unable to remedy the defect. “It doesn’t look like it’s going to heal. “

David Brewster, an attorney for Otten Johnson Robinson Neff Ragonetti, representing the owners, did not respond to requests for comment either before or after the sale.

In cases like this, according to the Public Trustee, the title would pass to the bank unless the subordinate lien holders show up within eight business days of the auction. If there are no junior lien holders, the security passes to the bank at the close of the eighth business day.

The foreclosure of Promenade Shops marks the second time the property has been foreclosed since it was built in 2004. The property was foreclosed in 2009 and was acquired by a subsidiary of former lender Keybank for $ 85 million. DRA Advisors, a New York-based real estate private equity group, bought the property for $ 75.5 million later.

DRA has been attempting to sell the property since May 2020, listing it with the commercial real estate brokerage firm Jones Lang LaSalle Inc. The property does not include the Macy’s Inc. store, which is owned by separate owners.

The Promenade Shops was developed by Loveland-based McWhinney Real Estate Services Inc. and Memphis-based developer Poag & McEwen.

Partners participated in protracted litigation that ended in May with a judgment of 156 million dollars against Poag & McEwen and persons related to this company. Terry McEwen, who the court determined was responsible for 15% of the damage, appealed.

Clyde Wood, McWhinney’s vice president of business development, was in the audience at the foreclosure auction but did not speak and declined to comment after the sale. McWhinney, through his PR contractor, said, “McWhinney continues to monitor the Promenade at Centerra store foreclosure process and remains interested in the long-term success of the Lifestyle Center.”

Wood will be the point of contact for McWhinney’s redevelopment of the Foothills Shopping Center property, which McWhinney and a partner recently purchased for $ 45 million. Foothills, a 662,000 square foot shopping center in downtown Fort Collins, was also seized.

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