The El Paso County Public Trustee filed foreclosure papers Tuesday on the Antlers Hilton hotel in downtown Colorado Springs.
According to records from the public trustee, $36.35 million is the balance due on the 232-room downtown icon. The original principal balance of the debt was $36.342 million, according to public trustee documents.
This foreclosure is the largest locally in years, said Public Trustee Tom Mowle.
“This does make this the largest foreclosure in a long time,” Mowle said. “We may have had something in the Resolution Trust era that was larger.”
The deadline to pay off the balance is Nov. 19.
If the account is not cured by then, the property will be sold at public auction at 10 a.m. at the public trustee’s office Nov. 20.
According to the El Paso County Assessor’s website, the property has a 2013 market value of $26.1 million.
“I’m a minor investor in that. I can’t speak for the majority owners,” said Colorado Springs resident Larry Vitagliano, a former general manager of the hotel. “I knew it may happen, and I didn’t know when.”
Opened in 1883, then rebuilt much later, the hotel was an Adams Mark from 1998 to 2004, when it became a Hilton. It underwent a $7 million remodel after taking the Hilton name.
The current owners purchased the property from an investment group including Morgan Stanley and Pyramid Project Management.
The hotel was purchased Oct. 5, 2007, and was financed using a conventional loan with 6.51 percent interest.
The owner, GEPA Hotel Owner Colorado Springs LLC, is also the grantor, said Mowle.
The Colorado Secretary of State’s website lists GEPA with an address in Boston.
The trustee also posted foreclosure papers for the Comfort Inn at 1410 Harrison Road. The Comfort Inn original loan was for $5.8 million, with the outstanding principal now at $5.36 million, according to the trustee’s website. This property is also set for public auction Nov. 20 at 10 a.m. at the public trustee’s office, 105 E. Vermijo, Suite 101, Colorado Springs.