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res Commercial Real Estate Management has taken control of the eight-story office building, The Hub North, in Denver's River North Art District after its owners, Eagle Point Capital and Farallon Capital Management, surrendered it to avoid paying off a $37.3 million loan. The building was purchased for $40.5 million in 2021 but was valued at just $30 million when handed over to Ares, a 26% decrease.

    This move is part of a larger trend of distressed commercial properties in Denver, where increasing office vacancy rates and other buildings are being placed in receivership or sold at discounted prices. The River North Art District and downtown areas have been particularly affected, with several buildings struggling to pay their bills.

    The Hub North building, completed in 2019, has a combined 106,000 square feet of offices and shops, including tenants such as home food tech startup Bitewell and the Colorado Trust. Office vacancy rates in downtown Denver reached 34.9% in the fourth quarter, with more offices being vacated than leased.

    Other commercial landlords in the area are also facing financial difficulties, with several buildings being sold at discounted prices or placed in receivership. Lenders are taking advantage of these distressed properties, snapping up buildings across town and avoiding foreclosure.