Conscience Bay has paid $19 million for a 160,000-square-foot coworking building in Denver that fell into receivership after its owner defaulted on two loans tied to the property.
The Boulder-based investor bought Industry Denver, a coworking office at 3001 Brighton Boulevard, in the River North Art District, the Denver Business Journal reported. The deal works out to $119 per square foot.
The sale was overseen by its receiver, Dallas-based Trigild, appointed by a court in December.
New York-based Clarion Partners was the seller. The purchase by Conscience Bay comes nine months after American General Life Insurance and American Home Insurance, subsidiaries of New York-based American International Group, sued Clarion for defaulting on two loans for a combined $32 million.
In 2016, American General Life loaned Clarion, the property’s majority owner, $20.32 million. At the same time, American Home loaned Clarion $11.68 million.
Both loans matured Nov. 1. But Clarion failed to pay off the balances, falling into default and owing $28.67 million to its lenders, according to the Business Journal.
American General Life Insurance Company and American Home Insurance Company took a 33.7 percent loss on the sale.
Clarion was represented by CBRE in the deal. Conscience Bay was not represented.
The two-story Industry Denver building, built in 1939, once served as a cold storage warehouse, then later as a food market. It was converted into coworking offices in 2013.
The building was among the first major office developments in the RiNo Art District, paving the way for redevelopment along Brighton Boulevard, which mainly consisted of industrial properties, according to Mile High CRE.
More than 20 companies call Industry Denver home, including Core Power Yoga, Snooze and Will Call.
Conscience Bay plans to rename it Fabrica RiNo, while continuing to lease offices to businesses and individual tenants ranging from 500 to 12,000 square feet. Fabrica RiNo will not offer traditional coworking spaces, such as desk rentals and daily rates.
The firm plans to revamp the building’s tech infrastructure, while adding a restaurant and possibly a fitness center, according to Ben Woolf, director of commercial real estate investments for Conscience Bay.
“This is an asset that has played a pivotal role in shaping the RiNo Art District over the last decade-plus,” Woolf said in a statement. “We’re eager to continue the tradition of creative entrepreneurship in this historic building.”
Conscience Bay, founded in 2011 by Eli Feldman, owns office, industrial and apartment buildings, as well as working ranches, across greater Denver, according to its website.
— Dana Bartholomew
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