Commercial properties in Longmont, FoCo sold at foreclosure auctions

FORT COLLINS & LONGMONT — Miami Beach-based LNR Partners LLC has acquired two commercial properties, one in Longmont and one in Fort Collins, for $20.9 million in foreclosure auctions that were finalized earlier this month.

A group of investors using the name PPG MOB Fund, registered with the Secretary of State’s office using an address in Denver, defaulted on a 10-year loan of $104 million it took out to help cover the purchase of a portfolio of properties in 2003 that included the 57,287-square-foot Preston Center at 2809 E. Harmony Road in Fort Collins, and the 102,795-square-foot Longmont Medical Campus at 1551 Professional Lane in Longmont, as well as medical center properties in Golden, Centennial, Phoenix and Indianapolis.

LNR Partners LLC, a commercial mortgage special servicer, paid $18.3 million for the Longmont Medical Campus, and it paid $12.6 million for the Preston Center, according to public documents. LNR Partners did not respond to requests for information about how it will handle the properties going forward.

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The lender, Morgan Stanley Mortgage Capital Inc., began foreclosure proceedings in 2016. Prior to the foreclosure, the property in Longmont was owned by the entity PPG MOB Fund IA LLC, and the property in Fort Collins was owned by PPG MOB Fund IB LLC, according to Boulder and Larimer county public records. The entities defaulted on the $104 million loan taken out in 2006, still owing $97.2 million 10 years later, according to public trustees documents.

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The properties in Fort Collins and Longmont were part of a seven-property portfolio developed and managed by the Neenan Co. of Denver and Fort Collins that were sold to PPG MOB Fund I LLC for approximately $110 million in 2003, according to a report in the Denver Business Journal.

The Longmont Medical Campus was built in 2001-02 for $24 million —  $21 million in construction costs and $3 million for the 12.5 acres of land — by Neenan partnering with Longmont United Hospital and Front Range Orthopedics and Spine.

The medical campus has approximately 15 tenants, including Select Physical Therapy, Health Images Longmont, Gastroenterology of The Rockies and the Colorado Sleep Institute.

The Preston Center was built in 2001. Tenants of the building include Cornerstone Home Lending Inc., Comcast Advertising Sales and Multimin USA Inc.