The owners of two Aurora apartment buildings at the center of an immigration controversy have allegedly failed to make loan payments on about $9 million in debt, resulting in a court giving control of the properties to a third party.
With the change, it appears that the buildings are no longer under threat of closure by the city.
The buildings in question — Whispering Pines Apartments and part of the Edge at Lowry complex— have gained national attention because of an alleged Venezuelan gang presence.
The owners had used the buildings as collateral to secure loans. The buildings are owned by several LLCs linked to CBZ Properties and a man named Zev Baumgarten. But the owners have failed to make payments on the loans in recent months, according to two lawsuits filed by U.S. Bank in recent weeks against the owners.
The landlords have “reported that gang-related activity at the Property has interfered with collection of rents and repairs,” both of the lawsuits claimed.
The building owners failed to make loan payments in July, August and September, putting them in default, the lawsuits claim. When a loan is in default, the lender can try to take the collateral (in this case, the apartments) as a form of compensation for the unpaid debt.
"The Defendants’ inability to pay operating expenses because they lack the
necessary cash flow from the Property places the rents, issues and profits of the Property in
danger of being lost," one of the lawsuits argued.
The lawsuits are getting results: Both buildings have been placed into receivership, meaning a third party, Kevin A. Singer of California, is now in charge of running the properties, collecting rents and more on behalf of the bank.
Mayor Mike Coffman’s office celebrated the orders as a win. “We are thrilled that the property owners and managers have agreed to let a court-appointed, third-party receiver take control of these private properties to finally address the longstanding issues at each of them,” wrote spokesperson Ryan Luby in an email.
Tenants have complained for months about rodents, broken-down appliances, mold and more. Tenants have complained of a lack of services and repairs, while crime concerns have mounted. A video captured six armed men breaking into an apartment at the Edge, although it's unclear if they are linked to a gang or not. Shortly afterward, a man was shot to death outside the apartments.
Aurora police have linked 10 men to the Venezuelan gang Tren de Aragua, and charged at least one with threatening people at the Edge at Lowry.
The city had threatened to close the Edge at Lowry through a criminal nuisance case, but that’s off the table for now, Luby said.
U.S. Bank had commissioned a law firm to investigate alleged gang problems at Whispering Pines, finding that Tren de Aragua had tried to steal up to half of rent payments for the building, The Denver Gazette reported.
On Sept. 29, a local judge placed Whispering Pines under receivership. Another judge did the same for the Edge at Lowry on Monday. The Denver Post reported earlier on the receivership orders.
Singer, a California-based specialist in receivership, was designated as receiver of both properties. Singer didn’t immediately respond to a request for comment about his immediate plans for the properties.
The property owners took out a roughly $2 million loan in April 2022 and another $7.2M loan in Sept. 2023. The owners have paid less than $100,000 of the principal (the actual loan amount) on the first loan and practically none of the principal on the second loan, the lawsuits claim. It's unclear how much interest had been paid.
The lawsuits were filed against a series of limited-liability companies: 200 Columbia Realty, BZMRS, Whispering Pines Partners and 733 DeKalb Realty. All three share the same address in Denver and are linked to landlord CBZ Management and Zev Baumgarten.
Another related building, Fitzsimons Apartments, was previously closed by the city. But the story is still playing a significant role in national media and politics — with former President Donald Trump set to visit Aurora on Friday.
