Lender seeks receiver for RedT townhomes on Denver-Aurora line

A lender has filed a lawsuit seeking the appointment of a receiver for a townhome project currently under construction near the Denver-Aurora border.

Churchill Funding I LLC claims that an affiliate of RedT Homes in Denver owes $22 million on loans issued in 2023 for the Grand Avenue project. This project includes the development of 53 townhomes in the Aurora area, located in the 1200 and 1300 block of Akron Street, the 1300 block of Alton Street, and the 9000 block of East 14th Avenue. Each townhome will feature three or four bedrooms and range from 1,500 to 1,800 square feet.

The lender alleges that RedT Homes defaulted on the loans by failing to make monthly interest payments since August and by not paying off one loan upon maturity in September.

Churchill Funding has requested the appointment of Ampleo Turnaround & Restructuring as the receiver to protect the lender’s collateral value. A lien has also been filed on the property by Gold’s Concrete of Thornton, claiming $86,000 is owed to them.

RedT Homes’ owner, Nathan Adams, acknowledged the challenges faced during the project, including unexpected costs for asbestos cleanup and theft of materials from the site. Despite these setbacks, Adams expressed willingness to work with the receivership process while negotiating certain aspects.

The project, initially planned for townhome sales, has shifted to rental units due to market conditions. Adams mentioned ongoing challenges in other projects in Denver neighborhoods, attributing some struggles to utility provider Xcel Energy.

With a slow housing market and prolonged downturn, Adams remains optimistic about the project’s completion and rental success.

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