Nativ Hotel in Denver files for bankruptcy in bid to slow down foreclosure process

Robert Roffulo

The owner of the Nativ Hotel building in downtown Denver has filed for Chapter 11 bankruptcy protection in an effort to slow the foreclosure process — and a nightclub operator currently facing heat from the city wants to move in. KDA Properties LLC said in its Wednesday filing that it […]

The owner of the Nativ Hotel building in downtown Denver has filed for Chapter 11 bankruptcy protection in an effort to slow the foreclosure process — and a nightclub operator currently facing heat from the city wants to move in.

KDA Properties LLC said in its Wednesday filing that it owes $9.61 million to four creditors.

The bulk of the money — $8.07 million — is owed to Chicago-based Pangea Mortgage Capital. The claim is secured by the four-story building Nativ occupies at 1612 Wazee St., as well as other assets. Pangea did not respond to a request for comment.

“We’ve recently had the intention to exit the property, but we’re going to exit our way,” said Nativ Hotel co-owner Amin Suliaman. “I’m not going to let them bully us out of the property.”

Companies use Chapter 11 bankruptcy protection to reorganize and help keep the business alive, paying creditors over time.

Suliaman told BusinessDen the bankruptcy filing pertains solely to the business’ real estate. He said the 14-room hotel and attached nightclub are run by a different entity that did not file for bankruptcy.

Pangea Mortgage Capital initiated the foreclosure process for the hotel building in December 2020, according to Denver’s Public Trustee Office. Suliaman said the business was about to receive its PPP funds in January and was “blindsided.”

An auction of the property was initially set for May, but has been repeatedly pushed back. Suliaman said the lender has not set an official date because the business has been making its monthly mortgage payment of $56,000.

“This gives us an opportunity to reset with a neutral third party in the bankruptcy court, and forces our lender to address the plan in place that we have to exit,” Suliaman said. “It gets us back to an even playing field.”

Attorney Jeffrey Weinman of Weinman & Associates is representing Nativ in bankruptcy proceedings.

Lily O’Neill, BusinessDen

The hotel is on the market for around $7 million, Suliaman said.

Building up for sale; hotel largely not operating

LoDo hotel files for bankruptcy in bid to slow down foreclosure process

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