Page 18 —
COLORADO REAL ESTATE JOURNAL
— December 17, 2014-January 6, 2015
by John Rebchook
The energy-efficient EPA
building in downtown Denver
is the single largest asset in a
nine-building General Services
Administration-leased office
portfolio that is undergoing a
workout strategy, according to
an analysis by a New York-
based firm.
The buildings, with a total of
1.1 million square feet in five
states, are being “reviewed to
determine (a) workout strategy
going forward,” according to
research from Trepp, a lead-
ing provider of information,
analytics and technology to the
global commercial mortgage-
backed securities, commercial
real estate and banking indus-
tries.
The in-depth report by Trepp
provides a rare glimpse of the
behind-the-scenes financing of
a GSA portfolio.
The EPA building at 1501
Wynkoop St. constitutes 28.18
percent of the allocated debt
balance of the nine buildings,
in which the GSA is the pri-
mary tenant.
Los Angeles-based Saban
Capital, through Denver EPA
LLC, purchased the 276,471-
sf EPA building in December
2006 for $91.32 million.
The EPA is by far the largest
tenant in the building, taking
248,849 sf.
It is an extremely energy-
efficient building that includes
such sustainable features as a
green roof, solar panels, and
extremely efficient heating,
ventilation and air-condition-
ing systems.
Other tenants in the building
include:
• Office Depot, 7,146 sf;
• JPMorgan Chase Bank, two
leases for a total of 6,636 sf;
• Anthony’s Pizza, 2,892 sf;
and
• MGG Muffins, 1,787 sf.
The building is part of a
$268.2 million GSA portfolio
owned by Saban.
The loan was transferred to
special servicing in May 2012,
as Saban was unable to refi-
nance the debt and it was fac-
ing imminent maturity default,
according to Trepp’s research.
It was returned as a “cor-
rected” loan last March.
The loan was broken into
two parts: Note A, with $235
million, and Note B, with $34
million.
Note A is a first mortgage
and Note B represents mezza-
nine financing.
Of Note A, $66.01 million, or
28.18 percent, was allocated to
1501 Wynkoop.
Of Note B, $9.58 million was
allocated to the Denver build-
ing.
The maturity on the loan was
pushed out by five years to
May 2017.
That is unusual, said Eric
Tupler, who heads the Denver
office of Holliday, Fenogolio
Fowler, better known as HFF.
“Usually, they do not do
extensions of more than 12 to
24 months,” said Tupler, who
reviewed the Trepp documents
at the request of the Colorado
Real Estate Journal.
The Trepp report illustrates
the risks and rewards of build-
ings primarily net leased to the
government, he said.
Investors love these GSA
deals, “because they know the
government will always pay
their rent,” Tupler said.
On the other hand, when
Saban did this deal, it had
long-term leases with the GSA
that stretched out for 10 or 15
years, he said.
“Now, they have got five
years or less of some of these
deals and so the values of the
First American Title
National Commercial Services
is excited to announce the expanded roles and responsibilites
of talented service team members in Colorado.
We recognize their skill and dedication.
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of First American Financial Corporation and/or its affiliates.
It is with great pleasure First American Title Insurance Company – National Commercial Services
announces the following employees’ expanded roles and responsibilities within our company:
Melanie Watson, Senior Escrow Officer
Laurie McKee, Commercial Escrow Officer
Nathan Rogers, Commercial Escrow Officer
Jex Lawrence, Associate Underwriting Counsel
Steve Watson, Associate Underwriting Counsel
Thank you for your continued dedication and determination. Great job!
It is with great pleasure First American Title Insurance Company – National Commercial Services
announces the following employe s’ expanded roles and responsibilities within our company:
Melanie Watson, Senior Escrow Officer
Laurie McKee, Commercial Escrow Officer
N than Rogers, Commercial Escrow Officer
Jex Lawr nce, Associate Underwriting Counsel
Steve Watson, Associate Underwriting Counsel
Thank you for your co tinued dedicatio and determination. Great job!
It is with great pleasure First American Title Insurance Company – National Commercial Services
announces the following employees’ expanded roles and responsibilities within our company:
Melanie Watson, Senior Escrow Officer
Laurie McKee, Commercial Escrow Officer
Nathan Rogers, Commercial Escrow Officer
Jex Lawrence, Associate Underwriting Counsel
Steve Watson, Associate Underwriting Counsel
Thank you for your continued dedication and determination. Great job!
It is with great pleasure First American Title Insurance Company – National Commercial Services
an ounces the following employe s’ expanded roles and responsibilities within our company:
Melanie Watson, Senior Escrow Officer
Laurie McKee, Commercial Escrow Officer
N than Rogers, Commercial Escrow Officer
Jex Lawr nce, Associate Underwriting Counsel
Steve Watson, Associate Underwriting Counsel
Thank y u f r your continued dedicatio and determination. Great job!
It is with great pleasure First American Title Insurance Company – National Commercial Services
announces the following employees’ expanded roles and responsibilities within our company:
Melanie Watson, Senior Escrow Officer
Laurie McKee, Commercial Escrow Officer
Nathan Rogers, Commercial Escrow Officer
Jex Lawrence, Associate Underwriting Counsel
Steve Watson, Associate Underwriting Counsel
Thank you for your continued dedication and determination. Great job!
Melanie Watson
Senior Escrow Officer
Jex Lawrence
Associate Underwriting Counsel
Laurie McKee
Commercial Escrow Officer
Steve Watson
Associate Underwriting Counsel
Nathan Rogers
Commercial Escrow Officer
Finance
The EPA is the anchor tenant at the LoDo building at 1501 Wynkoop St.
