Promenade caught in credit squeeze

LOVELAND – The initiation of foreclosure proceedings on the Promenade Shops at Centerra is illustrative of a growing trend in the commercial real estate world that has financial regulators scrambling to ease pressure on lenders.

On Nov. 3, the Promenade Shops became the largest property to enter into the foreclosure process in Larimer County when KeyBank, as the agent for a group of lenders, filed a notice of election and demand for sale for the remaining $112.86 million balance of a $116 million loan made in October 2004.

The dubious distinction of largest-in-foreclosure was previously held by Integrated Capital LLC, the…