A high-stakes fight has broken out over a prominent RiNo development site, with a Denver investor accusing Formativ of breaching a contractually promised buyout tied to the selection of the general contractor. The lawsuit pits the parties against each other in a seven-figure dispute over the 3850 Blake project, even as construction crews continue working on the building.
What Lindgren says
Lindgren Development stated that it invested $2.3 million in the project in 2022, contingent upon Formativ's consideration of hiring Swinerton Builders as the general contractor. If Swinerton was not selected, Lindgren could demand a buyout that would deliver a 14% return, as reported by BusinessDen. According to the complaint, Lindgren says it was misled into agreeing to a $1.3 million buyout in June 2025 and now wants roughly $2.1 million more from Formativ, arguing that is the amount it is owed under the deal.
Project background and builder
The development at 38th and Blake is planned as a 16-story, 310-unit multifamily building that secured $65.5 million in construction financing, according to JLL. Industry reports identify The Weitz Co. as the general contractor and describe the 3850 Blake site as the first of several parcels Formativ intends to build out in RiNo, per Bisnow.
What the filings say
Formativ fired back with a countersuit on Jan. 27, arguing that Lindgren’s push for a second, larger buyout is a bad-faith attempt to capitalize on a drafting error and does not reflect the parties’ intent, according to BusinessDen. Formativ also contends that Swinerton stopped meaningfully participating in the job and did not submit acceptable pricing, which it says undercuts Lindgren’s position. Each side accuses the other of fraudulent concealment and breach of contract, and Denver District Judge Adam Espinosa has been assigned to oversee the case.
What comes next
The dispute now heads into the grind of pretrial motions and discovery, where the contract language and competing fraud claims will be tested. Formativ maintains that the lawsuit will not derail construction at 3850 Blake. Lindgren, meanwhile, is asking the court to award the additional buyout it says the documents guarantee. The eventual ruling could turn on how the agreements are interpreted and whether the contested buyout provision is found to apply to both LLCs in which Lindgren invested.
