Interest growing on judgment in Promenade Shops lawsuit. BizWest file photo

Promenade Shops heads to Wednesday foreclosure sale

LOVELAND — The Promenade Shops at Centerra appears headed to a foreclosure auction Wednesday, after a Larimer County District Court judge cleared the way for the action this month.

Judge Julie K. Field issued an order June 4 authorizing the Larimer County Public Trustee to conduct the sale, which is scheduled for 10 a.m., Wednesday, June 30, at 200 W. Oak St. in Fort Collins. Court orders are required for public trustees to sell properties in foreclosure.

The Promenade Shops encompasses 493,172 square feet of retail and entertainment space at the northeast corner of Interstate 25 and U.S. Highway 34.

A sign for the Promenade Shops at Centerra along I-25. BizWest file photo

Wilmington Trust NA, a trustee for Natixis Commercial Mortgage Securities Trust, initiated foreclosure in February, claiming that the owner, DRA Advisors LLC, operating as G&I VI Promenade LLC and G&I VI Retail Prom LLC, defaulted on an $83.65 million promissory note.

William Meyer, an attorney with Polsinelli PC representing the lenders, said the sale is expected to proceed.

“We are not currently anticipating any delay. I think it will proceed, but until it does, it’s difficult to say,” Meyer said.

Borrowers can cure a default at any time during a foreclosure process. When asked whether the owners had made any attempt to do so, Meyers said, “I don’t know if I’d say ‘no attempt,’ but certainly it doesn’t look like it’s going to get cured.”

An attorney with Otten Johnson Robinson Neff Ragonetti PC, representing the owners, did not respond to a request for comment.

The Promenade Shops foreclosure marks the second time that the property has fallen into foreclosure since its construction in 2004. The property went into foreclosure in 2009 and was acquired by a subsidiary of former lender Keybank for $85 million. DRA Advisors, a New York City-based real estate private equity group, purchased the property for $75.5 million months later.

DRA has been attempting to sell the property since May 2020, listing it with commercial real estate brokerage Jones Lang LaSalle Inc. The property does not include the Macy’s Inc. store, which is under separate ownership.

The Promenade Shops was developed by Loveland-based McWhinney Real Estate Services Inc. and Memphis-based developer Poag & McEwen.

The partners were involved in protracted litigation that ended in May with a $156 million judgment against Poag & McEwen and individuals connected with that company. Terry McEwen, who the court determined was responsible for 15% of the damages, has appealed.

McWhinney and a joint-venture partner recently paid $45 million to acquire the 662,000-square-foot Foothills mall property in Fort Collins.That property had also been in foreclosure.

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