The Promenade Shops at Centerra has fallen into foreclosure for the second time in its 16-year history as a lawsuit between its original developers heads toward a May 3 trial.
The owner of the Loveland shopping center, DRA Advisors LLC, defaulted on the $83.65 million loan provided by Wilmington Trust National Association, a trustee for Natixis Commercial Mortgage Securities Trust, sending the property into foreclosure, according to documents filed with the Larimer County Public Trustee.
If DRA doesn’t cure the foreclosure, the outdoor shopping center will go to foreclosure sale June 30, according to documents.
The property has been on the market since May, when Jones Lang LaSalle, or JLL, a Fortune 500 company, listed the 16-year-old shopping center for sale. The asking price was not disclosed.
At the time, JLL’s website listed the 493,172-square-foot center, anchored by Dick’s Sporting Goods, Macy’s, Metrolux Theatres, Best Buy and Barnes & Noble, as 88% occupied with $143 million in reported sales. The sales flyer has not been updated to reflect sales during the COVID-19 pandemic.
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DRA does not own the Macy’s at Centerra, and that store is not included in the foreclosure.
The Promenade Shops is at the center of a protracted court battle between developer McWhinney of Loveland and Poag & McEwen, the original partners on the Promenade Shops.
In 2017, McWhinney won a $42 million judgment against Poag & McEwen Lifestyle Centers Centerra LLC in Larimer County District Court for breach of contract.
During the discovery process for that trial, McWhinney said in court documents it discovered additional information that led to a second lawsuit naming Dan Poag, Terry McEwen, Josh Poag and several other parties individually.
The $92 million lawsuit filed in U.S. District Court in November 2017 against Poag & McEwen and several individual stakeholders alleges a series of fraudulent transactions led to the shops’ 2009 foreclosure and McWhinney losing its stake in the development.
Neither Poag & McEwen nor McWhinney have any role in the Promenade Shops now.
A spokesman for McWhinney said McWhinney “remains passive” about the property.
The shopping center’s foreclosure is on the heels of a similar development at Foothills shopping center in Midtown Fort Collins that went into foreclosure in December after mall owner Walton Foothills Holdings VI — a holding company owned by mall developers Walton Street Capital and Alberta Development Partners — defaulted on its loan. As of Dec. 1, it still owed $46.59 million on the original $145 million loan as of Dec. 1.
Last week, McWhinney signed a purchase-and-sales agreement to buy Foothills. It is going through its due diligence period now. If the deal falls through and no other buyer steps up, the center will go to foreclosure auction April 21.
Pat Ferrier is a senior reporter covering business, health care and growth issues in Northern Colorado. Contact her at email@example.com. Please support her work and that of other Coloradoan journalists by purchasing a subscription today.