A big redevelopment project at the Aspen Club was meant to service tourists in Colorado, but financial trouble has prompted multiple contractors and the lender to foreclose on the property. FirstBank, which lent the club's owner $45 million, filed the first foreclosure action at the Pitkin County Treasurer's Office. According to the lender, the property owner owes $30 million. The general contractor, PCL Construction Services Inc., took similar action soon thereafter in Pitkin County District Court. The company activated its mechanic's lien on the property with the hope of recouping $19 million.
Investing in commercial real estate will usually require acquiring debt. It has been almost a decade since the Great Recession, and the commercial real estate financing industry is not the same as it once was. Kansas investors and developers may benefit from being familiar with the current state of commercial real estate lending.
Prospective buyers, sellers and investors who are interested in the commercial real estate market in Missouri should take care to understand the market trends before they move forward. This might help them to realize the most benefit from their commercial real estate transactions in 2018.
Many factors, like equity, interest rates, economic conditions and climate change, influence the financing of commercial real estate in Missouri and around the country. The conservatism of some banks in recent years has led to requirements that investors bring more equity to their deals. One bank executive said that deals with 75 percent of financing coming from a bank were not happening anymore.