Two Aurora office buildings to sell at 78% discount

Aurora Office Buildings to Sell at 78% Discount

Two distressed office buildings in southern Aurora are set to be sold at a significant discount from their last sale in 2018. The Cherry Creek Place I and II buildings, totaling 409,000 square feet, are under contract to be sold for $8.8 million, or $21.50 per square foot, according to court documents. This marks a 78% discount from the $39.7 million price paid by the current owner, an affiliate of Pennybacker Capital, in June 2018.

The buyer, WT Investments Limited, is moving forward with the purchase, pending finalization of the deal. The buildings were previously owned by Northstar Commercial Partners, who defaulted on a $32 million loan issued by Citigroup in 2016.

Wells Fargo Bank, now the trustee of the loan, initiated legal action last April, leading to the appointment of a receiver, Doug Wilson, for the buildings. Wilson described the properties as being in good physical condition, with potential for redevelopment or office repositioning.

CBRE has been hired to market the buildings for sale, highlighting their potential for transformation. Pennybacker Capital also owns Cherry Creek Place III nearby, which was acquired for $6.6 million in early 2019.