The File

Palmer Center: Colorado Springs' two tallest towers head to auction

Colorado Springs' two tallest towers go to auction Oct. 21 on $60M of CMBS debt

90 S. & 2 N. Cascade Ave., Colorado Springs · Office

~$60MOwed, Sept. 2026

~$70MCounty assessed value

~86%Debt to assessed value

Operator: Unilev Capital
Loan: $73.7M cut-off balance (2015) · 70.9% LTV
Trust: MSBAM 2015-C26
Trustee: Wilmington Trust
Size: 459,500 sf · towers built 1990 & 1967
Next date: Oct. 21 public trustee auction

What happened. The El Paso County Public Trustee has set an Oct. 21 foreclosure auction for Palmer Center. The downtown complex includes Colorado Springs' two tallest office buildings, the Wells Fargo Tower and the 14-story FirstBank Building. The foreclosing party is Wilmington Trust, as trustee for MSBAM 2015-C26, and about $60M is owed.

The numbers. The 2015 loan's cut-off balance was $73.7M, 70.9% of the appraised value at the time, with 1.34x underwritten debt service coverage. It was the fourth-largest loan in the trust, 7.0% of the pool. El Paso County assesses the complex at about $70M, so the remaining balance runs about 86% of assessed value.

The squeeze. At 459,500 sf, Palmer Center is about 9% of downtown office space. The citywide office vacancy rate was near 11.6% in early 2026, with negative absorption. The operator, Unilev Capital, was also reported delinquent on a CMBS loan of about $69M on One Riverway in Houston, which entered special servicing in 2023. The maturity date, special servicer and workout status aren't confirmed for Palmer Center.

What's next. The next date is the Oct. 21 auction. No deed-in-lieu, note sale or settlement has been reported. The named tenants include defense contractor Bluestaq, at 43,006 sf, and DaVita Medical Group.

The Radar

Seven situations to track

CriticalHighWatchStable

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Since thenNov. 5: Braemar's quarterly filing said the hotel's July 14 sale paid down $232.8M of the pooled loan and the first one-year extension was exercised in August.

What happened

Carrollton, TX. The servicer said CyrusOne DFW1's $687.1M loan was extended to August 2027 on Aug. 10, using the first of three options. Early reports had counted it as past maturity.

Dates to watch

Oct 21: Palmer Center: public trustee auction, El Paso County
Aug 2027: CyrusOne DFW1: extended maturity on the $687.1M loan

Palmer Center: Colorado Springs' two tallest towers head to auction

Colorado Springs' two tallest towers go to auction Oct. 21 on $60M of CMBS debt

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