McWhinney, partners paid $45M for Foothills
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FORT COLLINS — A joint venture between Loveland-based McWhinney Real Estate Services Inc. and Los Angeles-based Prism Places paid $45 million for the troubled Foothills shopping center in Fort Collins.
MXD Fort Collins LLC, based at McWhinney’s Loveland headquarters, purchased the 662,000-square-foot property from Cordes & Co. LLP, the court-appointed receiver for the property, according to a deed recorded with the Larimer County Clerk and Recorder.
The buyer also filed a $30.6 million deed of trust with Independent Bank.
A spokesperson for McWhinney could not immediately be reached for comment on the purchase price.
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MUFG Union Bank NA in December filed a lawsuit in Larimer County District Court against Foothills’ prior owner — Walton Foothills Holdings VI LLC. MUFG claimed that Walton Foothills had defaulted on a $145 million loan, with $46.59 million remaining in unpaid principal and interest at that time.
The court issued an order on Dec. 24 appointing Cordes as receiver for the property.
McWhinney had been in negotiations since February to acquire the property out of foreclosure before it went to public auction and announced last week that the purchase was complete. The sale price was not revealed at that time.
“It’s an incredible asset with significant potential, and our first step is to take the time to get fully acquainted with existing tenants and absorb the nuances of current operations,” McWhinney president Ray Pittman said in a prepared statement at the time. “As owner of the Cycle Apartments next door, we see this acquisition as a natural extension of our investment in Midtown Fort Collins. We feel this is a once-in-a-generation opportunity to create an exceptional destination that will support and strengthen the entire region. McWhinney is a long-term stakeholder in Northern Colorado and we look forward to taking on this hometown project.”
In addition to the loan from Independent Bank, McWhinney appears to have raised additional funds for the transaction. An entity known as MXD Fort Collins Investments LLC — and listed as related to McWhinney — filed a Form D with the U.S. Securities and Exchange Commission Wednesday, reporting that it had raised $27.45 million from 33 investors. The offering was for equity. Form Ds are required to be filed with the SEC for certain fundraising activities.
McWhinney has a long history of development and real estate activities in Northern Colorado and beyond. The company developed the Centerra mixed-use community in Loveland and was previously a part owner of The Promenade Shops at Centerra, before that property went into foreclosure in 2009.
The 493,037-square-foot Promenade Shops is in foreclosure for a second time, with a subsidiary of M&T Bank Corp. (NYSE: MTB) alleging that current owner DRA Advisors LLC defaulted on an $83.65 million note.
DRA had been attempting to sell the property since May 2020. That property is tentatively scheduled for public auction June 30.
McWhinney also has developed industrial, office, retail and residential projects in the region, including in Denver and Broomfield, and has numerous projects in other states.
McWhinney’s acquisition of Foothills is expected to bring major changes to the property, perhaps adding a mix of uses. The company said at the time of the purchase that it would work with business and community partners to develop a long-term vision for the area.
FORT COLLINS — A joint venture between Loveland-based McWhinney Real Estate Services Inc. and Los Angeles-based Prism Places paid $45 million for the troubled Foothills shopping center in Fort Collins.
MXD Fort Collins LLC, based at McWhinney’s Loveland headquarters, purchased the 662,000-square-foot property from Cordes & Co. LLP, the court-appointed receiver for the property, according to a deed recorded with the Larimer County Clerk and Recorder.
The buyer also filed a $30.6 million deed of trust with Independent Bank.
A spokesperson for McWhinney could not immediately be reached for comment on the purchase price.
MUFG Union Bank NA in December filed a lawsuit in…
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