Brookfield, MetLife Modify $134M Republic Plaza Loan To Remove It From Default
Brookfield Properties and MetLife Insurance extended the term on the $134M loan against downtown Denver’s 56-story Republic Plaza office space until March 2026 and have effectively removed it from default, a spokesperson for the company told Bisnow.
“We remain deeply committed to Downtown Denver and look forward to sharing additional positive momentum for Republic Plaza soon,” Brookfield Executive Vice President David Sternberg said in a statement.
Bisnow reported in April that the loan against Republic Plaza became delinquent after multiple high-profile companies like Extraction Oil & Gas and DCP Midstream decided to leave their leased space in the building. At the time, commercial data firm TreppWire anticipated the building’s occupancy rate to fall from around 71% in 2022 to 67%.
The loan modification also follows a spate of leasing activity and renovations to Republic Plaza, including a renewal from Ovintiv USA, an oil and gas exploration company, on more than 262K SF, or about one-quarter of the total square footage. Other entities that have signed lease agreements at the building include the Office of the Denver District Attorney, which will lease about 74K SF, according to Brookfield.
At the same time, Republic Plaza is also adding a wine bar called Done Deal, the Denver Post reported. Done Deal is owned by Troy Guard of TAG Restaurant Group, which also owns Denver-area staples like Guard & Grace and Los Chingones. Guard told the publication that Brookfield approached him about opening the wine bar at Republic Plaza to bring more people to the building.
Brookfield has also begun the process of transitioning its entire U.S. office portfolio to a zero emissions energy model by 2026, according to a press release. Some of the offices will be transitioned using direct power purchase agreements, or contracts that allow utilities to sell power to other companies at a pre-negotiated price.
In Denver, which doesn’t allow for power purchase agreements, Brookfield plans to acquire renewable energy from wind power facilities that is equal to 100% of the energy demands of their buildings, according to the release.
“Not only will it significantly advance our goal of transitioning our entire portfolio to net zero energy, but also we are confident that both the increased demand for zero emission electricity it will create and the industry precedence it will set will be a game-changer for how state-of-the-art office buildings are powered throughout the country,” Brookfield Real Estate Managing Partner Ben Brown said in the press release.
