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A Denver District judge issued a stay on Monday regarding an earlier ruling that had approved a request by Wells Fargo to have a receiver appointed for Zeppelin Station.
Zeppelin Station is a 100K SF food hall and workspace at 3501 Wazee St. owned by Zeppelin Development. The four-story building houses the offices of the Alterra Mountain Co., owner of ski resorts in Steamboat Springs and Winter Park, among several others.
According to court records dated March 26, Rino Tod LLC, Zeppelin Development’s legal entity, owes Wells Fargo more than $28M on a $32M loan originated in 2019. Wells Fargo said in the court records that the loan has been in “repeated default” since 2021, with Rino Tod in monetary default since last summer.
Zeppelin Development had planned to appeal the ruling and ask for more time on its loan payments, the Denver Business Journal previously reported. Adam Larkey, the company’s chief operating officer, said Zeppelin Station’s food hall and ground-floor retail spaces are fully leased. He added that the building’s upper three floors have 85% occupancy, with Alterra alone occupying 40K SF.
The court originally granted Wells Fargo’s request to appoint the Stapleton Group as the receiver. In its March 26 petition, the bank pointed out Stapleton Group’s familiarity “with issues involved in managing and operating properties.”
But Zeppelin filed a motion last week that called into question Wells Fargo's choice of the Stapleton Group, according to a Monday DBJ report. Among the concerns is the fact that the Stapleton Group is based in California, has only had a Denver business office since 2020 and has “long-standing business relationships” with the bank.
In response, Judge J. Eric Elliff ruled for a stay and a hearing to determine which group would be the best receiver and if the terms of the receivership are valid.
No date has been set for the hearing.
Since its opening in 2018, Zeppelin Station has been hampered by financial issues, due in part to the pandemic, which forced many would-be consumers to stay home while adding to staff shortages and supply chain issues.
In late 2022, The Denver Post reported Zeppelin Station had lost $325K that year.
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