Foreclosure initiated on former Chase bank building

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The former Chase Bank building on the northwest corner of Pikes Peak Avenue and Tejon Street is in foreclosure.

El Paso County Public Trustee Tom Mowle reported today that a notice of election of demand — the first step in the foreclosure process – had been filed against the property’s owners, NNN Pikes Peak & Tejon LLC.

The five-story building which had been completely rebuilt in 1988, was purchased in 1999 by an investor from Santa Ana, Calif. for $8,730,000.

Foreclosure records show that the owners owe about $8 million to the property’s lender, Bank of America.

In recent years, however, the one-time premier bank site had fallen victim to deferred maintenance. Just last year its primary tenant, Chase Bank, vacated and moved to a new headquarters on North Tejon, leaving the five-story 100,000-square-foot building’s main and some upper floor space empty.

The property has been listed for $7.26 million, but some in the commercial real estate field believe it will only sell for 50- to- 60 percent of that amount, based on the building’s worn condition.

Sierra Commercial Real Estate broker Mark O’Donnell had shown the building to prospective tenants.  He was not surprised the building had fallen into foreclosure.

Although considered a Class A office building, lack of money available for tenant improvements and updating made it difficult for the owners to compete for tenants with other newer or better-maintained facilities.

“It’s been teetering on the brink of foreclosure for a year to 18 months,” he said.