$28M CMBS Loan Secured by Colorado Office Enters Special Servicing
Unico Properties’ Harlequin Plaza was built in 1981 and renovated in 2013
By Brian Pascus June 4, 2024 1:17 pm
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A $28 million commercial mortgage-backed securities (CMBS) loan secured by an office property in Greenwood Village, Colo., has been sent to special servicing due to an imminent maturity default.
The loan is secured by Harlequin Plaza, a two-building, 330,000-square-foot office building at 7600 East Orchard Road owned by Unico Properties and located 13 miles southeast of Downtown Denver. The five-story, glass-encased property opened in 1981 and is designated as a Class B office building even after a 2013 renovation.
The $28 million CMBS loan makes up 19.66 percent of remaining collateral behind WFCM-2014-LC16.
Upon securitization of the CMBS loan in 2014, Harlequin Plaza was appraised at a value of $46.6 million. The loan had been current throughout its life prior to the maturity default scheduled for this month, Trepp/" title="Trepp" class="company-link">Trepp reported.
Occupancy at Harlequin Plaza has fallen steadily in recent years, dropping from 90 percent in 2021 to 86 percent in 2022 and to as low as 74 percent in 2023. The loan most recently posted a debt-service-coverage-ratio of 1.34x, while special servicer notes reported by Trepp state that ownership is currently exploring a sale of the property.
Unico Properties did not respond to requests for comment. Trepp first reported the default.
Brian Pascus can be reached at bpascus@commercialobserver.com
