Denver’s Waterford RiNo apartment complex surrendered to lender

A Southern California real estate firm surrenders RiNo apartment complex to lender

A recent development in the real estate market has seen a Southern California firm surrender a large RiNo apartment complex to its lender, signaling a shift in distress from the office sector to the multifamily sector.

The Waterford RiNo building, located at 2797 Wewatta Way in Denver, consisting of 301 units, was handed over to an affiliate of Chicago-based Heitman by Sares Regis Group through a deed-in-lieu of foreclosure.

Upon the purchase of the building in 2021, Sares Regis paid $123 million, with a $91 million loan from Heitman. The complex, originally known as Marq at RiNo, was completed in 2012 and spans five stories.

Despite initial plans to renovate unit interiors and common areas, including the pool and fitness center, Sares Regis did not respond to requests for comment on the recent transaction.

While distress in Denver’s office sector has been evident in recent years, with properties like Denver Energy Center and Market Center facing foreclosures, Waterford RiNo marks a significant occurrence in the residential property market.

Several smaller residential properties in Denver have also faced distress, with foreclosure proceedings initiated for buildings on W. Evans Ave. and S. Quivas St., as well as the Arium Apartments building in Westminster.

Denver’s rental market has been impacted by an influx of new supply, driving rents down and increasing rent concessions to a 15-year high. High-interest rates across all real estate sectors have further complicated refinancing efforts for landlords.

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