Like single family homes, the number of Colorado Springs-area commercial properties falling into foreclosure has dwindled the last few years as the local real estate market and economy have improved. Still, commercial foreclosures haven’t disappeared altogether.
Dessert Canyon 1, 2 and 3, a series of California-based limited liability companies that own the Crossroads at Galley shopping center northeast of Academy Boulevard and Galley Road, were hit with a $6.9 million foreclosure notice Wednesday, according to El Paso County Public Trustee’s Office records.
It’s the largest foreclosure notice so far this year in El Paso County, based on dollar amount. By comparison, however, the foreclosure is relatively small; during the recent recession and in the years afterward, local commercial foreclosure notices routinely topped $10 million, including a $36.3 million foreclosure against the then-owners of the Antlers Hilton hotel in 2013.
The foreclosure against Dessert Canyon was brought by Crossroads Debt Holdings, a Delaware-based limited liability company. Dessert Canyon owed $6.9 million on an original loan of $7.8 million taken out in 2006, according to documents that accompanied the foreclosure filing.
Crossroads at Galley — which El Paso County Assessor’s Office records list as a series of buildings totaling nearly 78,000 square feet — is home to a Social Security office. Office Depot and the Colorado Rockies’ Dugout store previously occupied the center.
Generally speaking, a foreclosure notice is filed after a borrower misses several months of payments, although it’s unknown if that was the case involving the Crossroads at Galley. Typically, a commercial property such as a shopping center, office building and the like continues to operate as normal while the foreclosure action plays out behind the scenes, and tenants and members of the public aren’t affected.