Brookfield Properties has once again let the clock run out on the loan backing Republic Plaza, failing to pay off the debt when it matured on March 15. The 56-story tower, Denver’s tallest building, is now in special servicing as lenders and servicers weigh their options in a downtown office market that still has more empty seats than takers.
According to BusinessDen, Trepp shows the loan balance at about $230.1 million and notes that it was transferred to special servicing after Brookfield did not pay the debt at maturity. BusinessDen also reports that Brookfield declined to comment.
How a 2023 tweak failed to solve the problem
Back in July 2023, Brookfield and the lender tried to buy time. They modified the loan, pushing the maturity date to March 15, and giving Brookfield some temporary breathing room with interest-only payments.
A KBRA surveillance report shows the deal also included a $6 million principal curtailment and a cash-trap structure that was supposed to funnel extra cash flow toward paying the balance down. Even then, KBRA warned the tower would remain vulnerable if leasing did not pick up…