.## Transaction Overview

• buyer: Sidison Capital (operating as Sidford Capital)
• Asset: Former Blake Street Tavern building, 1470 Blake Street, Denver, CO
• Deal type: Purchase at a court‑ordered foreclosure auction following a defaulted commercial loan
• Closing date: 2025‑11‑18, officially recorded on 2025‑12‑01
• Purchase price: $7.2 million (≈ $125 / sq ft for the 57,600 sq ft structure)

Sidford Capital secured the property with a cash bid that outperformed competing institutional investors,signaling confidence in the LoDo market’s upside.

Location & Ancient Meaning

The building’s brick façade and high‑ceiled loft spaces make it an attractive candidate for adaptive‑reuse projects, ranging from boutique hotels to coworking hubs.

Financial Details of the Defaulted Loan Sale

1. Original loan – $10.5 million senior secured loan originated by a regional bank in 2021,secured by the Blake Street property.
2. Loan covenant breach – Borrower missed two consecutive interest payments (Q2 2023, Q3 2023) and defaulted on the amortization schedule.
3. Notice of default – Filed with Denver County Court on 2024‑08‑15.
4. Foreclosure auction – Conducted on 2025‑06‑22 at the Denver County Courtroom; minimum bid set at 70 % of the outstanding balance.
5. Outstanding balance at auction – $7.6 million (principal + accrued interest & fees).
6. Final bid – Sidford Capital’s $7.2 million offer satisfied the court‑approved bid floor and cleared the title of any junior liens.

Sidford Capital’s Acquisition Strategy

• Portfolio diversification – Adds a marquee LoDo asset to Sidford’s growing Colorado portfolio,which already includes two mixed‑use towers in Aurora and a historic office conversion in Capitol Hill.
• Value‑add potential – Anticipated $15 million capital infusion for interior gut‑renovation, façade restoration, and entitlement work, projecting IRR > 18 % over a 5‑year hold.
• Leverage opportunities – Planning a 70 % LTV financing structure with a local construction lender, preserving cash for tenant improvements.
• Community partnership – Engaging Denver’s Historic Preservation Office early to secure tax credits for historic rehabilitation (estimated $2.1 million in federal and state credits).

Sidford’s acquisition team highlighted that the low‑cost entry point combined with high demand for LoDo live‑work units creates a compelling risk‑adjusted return profile.

Potential Redevelopment Plans

1. Mixed‑use Transit‑Oriented Progress (TOD)

• Ground floor: Street‑level resturant, café, and boutique retail (≈ 12,000 sq ft).
• Upper levels: 40 loft‑style residential units (1‑3 bedroom) with private balconies and shared rooftop amenities.

2. adaptive reuse as a Creative Co‑Working Campus

• Open‑plan workspaces: 30,000 sq ft with flexible desks, private offices, and conference rooms.
• Event hall: 5,000 sq ft adaptable for artist showcases, product launches, and community workshops.

3. Boutique Hotel Concept

• Rooms: 80 boutique hotel rooms preserving historic brick walls and exposed beams.
• Amenities: Rooftop bar, fitness center, and a small conference suite targeting business travelers using Union Station.

Sidford is currently in the pre‑development entitlement phase; a public hearing with the Denver Planning Commission is scheduled for 2025‑02‑14.

Impact on denver’s LoDo Market

• Supply pressure relief: Adding ~ 40 residential units helps address the current LoDo vacancy gap of 3.8 % (Q3 2025).
• Economic stimulus: Projected construction spend of $25 million generates ~ 180 direct jobs and supports local suppliers.
• Preservation boost: Successful historic rehab encourages further investment in Denver’s aging masonry structures, potentially unlocking additional $500 million in adaptive‑reuse projects citywide.

Analysts at CBRE note that the transaction reinforces LoDo’s reputation as a “prime opportunistic market” for investors seeking high‑visibility, heritage‑rich assets.

Benefits for Investors & Community

• Tax incentives: Historic tax credits combined with Colorado’s Enterprise Zone incentives may reduce effective tax rates by up to 30 %.
• Stable cash flow: Mixed‑use configurations diversify revenue streams (rent, hospitality, F&B).
• Enhanced property value: Anticipated post‑rehab cap rate compression from 6.5 % to 5.2 % based on comparable LoDo assets.
• Community goodwill: Retaining the building’s historic façade preserves the streetscape, aligning with Denver’s “Preserve the Past, Build the Future” initiative.

Practical Tips for future Buyers of Defaulted Loan Assets

1. Due Diligence Checklist
• Verify title and any junior liens (mechanic’s, tax, HOA).
• Review historic preservation restrictions and potential credit eligibility.
• Assess market absorption rates for the intended use class.

2. Financing Strategy
• Pair a senior construction loan (70‑80 % LTV) with an equity bridge to cover tenant improvement costs.
• Consider joint‑venture structures with local developers familiar with municipal processes.

3. Negotiation Leverage
• In court‑ordered auctions, a clean cash offer often outweighs higher but contingent bids.
• Demonstrating a clear redevelopment roadmap can persuade lenders to provide favorable terms post‑acquisition.

4. risk Mitigation
• Conduct a Phase‑I Environmental Site Assessment to uncover potential contamination from the building’s industrial past.
• Secure a performance bond for any public improvement obligations tied to the permit process.

Case Study: Similar LoDo Acquisition – The 1905 Brick Building

• Buyer: Aurora capital Partners (2023)
• Asset: 1905 Brick Building, 1905 Larimer St.
• Purchase price: $6.4 million after a $9.2 million defaulted loan sale
• Outcome: Converted to 35 loft apartments and 8 % ground‑floor retail; achieved 12 % annualized return over 4 years, with historic tax credits covering 40 % of renovation costs.

The successful turnaround of the 1905 Brick Building underscores the financial upside of combining historic preservation credits with strategic mixed‑use repositioning-an approach Sidford Capital is mirroring at the Blake Street Tavern site.