DENVER — Denver's tallest building is no longer at risk for foreclosure.
As Next with Kyle Clark reported last week, the owner of Republic Plaza defaulted on its loan, but a spokesperson for Brookfield Properties confirmed Wednesday there is a new deal that runs through March 2026.
Brookfield co-owns the 56-story building near 17th Street and Tremont Place with MetLife Investment Management.
“Republic Plaza is an attractive office property, evidenced by the recent substantial lease activity achieved. We are pleased the loan modification positions the building for success going forward. We remain deeply committed to Downtown Denver and look forward to sharing additional positive momentum for Republic Plaza soon,” David Sternberg, executive vice president of Brookfield Properties, said in an emailed statement to 9NEWS.
According to 9NEWS' content partner, the Denver Business Journal, the loan balance as of March was $243.1 million. That loan matured on Dec. 1.
The new deal does not apply to the Brookfield-owned Wells Fargo Building, referred to commonly as the "Cash Register Building." The company also defaulted on the loan there.
Lenders had taken over management at both locations, as downtown office buildings struggled to fill space since the COVID-19 pandemic.
"One of the core issues certainly is that less people are going to the office," BusinessDen's Thomas Gounley told 9NEWS.
Cities across the country face that same challenge.
"It's not like a 30-year mortgage, where you have the same rate," Gounley added. "At the end of the loan term, you might still owe, you know, $100 million-plus, and you either need to give the bank $100 million at that date, or you get a new loan."
But with interest rates and the buildings' decreasing values, a new loan is not always easy to secure.
Gounley said Republic Plaza was valued at $535 million in 2012. Its latest valuation put the building at $298 million.
The Cash Register Building was worth $475 million in 2019. Now, $287 million.
If that building continues to head toward foreclosure, it's unlikely Denver loses that part of the skyline.
"These are really iconic buildings for Denver. So I expect somebody will want them, just not from prices that were paid a couple of years ago," Manus Clancy, an analyst who tracks commercial leases, said.
Gounley said you only have to look down the street for proof. The former World Trade Center, now Denver Energy Center, foreclosed last year.
"There's still companies that report to work at the Denver Energy Center. It's just, it's now owned by Chase Bank," he said. "The buildings won't -- you know, turn into wastelands."
Republic Plaza just inked deals with new tenants to take over space: the Denver District Attorney's Office, oil and gas company Ovitiv and a wine bar set to open in the lobby.
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