A bankruptcy judge has cleared the way for a lender to foreclose on a 145,000-square-foot office tower in Greenwood Village, ruling that the building's owner had no realistic path to profitability. U.S. Bankruptcy Court Judge Thomas McNamara granted Wilmington Trust relief from the automatic stay that had been shielding the Orchard Falls building at 7800 E. Orchard Road, allowing the lender to move forward with taking possession.
McNamara rejected the reorganization plan submitted by Orchard Falls Operating Company LLC, an affiliate of Denver-based Toma West, according to BusinessDen. In his ruling, the judge wrote that “there are no projections showing the debtor will do anything other than lose money,” a finding reported by The Denver Post. McNamara also described Denver as one of the toughest markets in the country for landlords of office buildings, and found that the debtor's own projections showed insufficient capital for capital expenditures and tenant incentives.
How Orchard Falls Ended Up in Bankruptcy Court
Toma West's Orchard Falls Operating Company bought the property for $25.8 million in April 2014, financing the purchase with a $19 million loan, per the same BusinessDen account. Wilmington Trust filed to foreclose in October 2024, saying at the time that the borrower owed $16.3 million in loan principal. Orchard Falls Operating Company then filed for Chapter 11 bankruptcy protection in September 2025, a move that automatically paused the foreclosure proceedings.
Wilmington Trust asked to resume those proceedings in February 2026. McNamara ultimately found that Toma West's latest reorganization plan, which proposed monthly payments to the lender over 15 years followed by an $8.6 million balloon payment, failed on feasibility grounds. The judge determined the building is believed to be worth $7.2 million and generates roughly $259,000 in monthly rent, with about 17,000 square feet sitting unoccupied, the outlet's report notes.
National Bank Holdings Anchors a Shrinking Tenant Base
National Bank Holdings Corp. is the building's largest tenant, occupying 47,000 square feet under a lease that runs through October 2027, per the same account. Craig K. Schuenemann, an attorney at Kilpatrick Townsend & Stockton, represented Wilmington Trust in the case, while Jeffrey Weinman and Justin Mertz, attorneys at Michael Best & Friedrich, represented Toma West. Kenneth Grant, Toma West's founder and president, did not respond to a request for comment as of Monday, according to the outlet.
A Second Toma West Tower Already Fell to Foreclosure
Orchard Falls was not an isolated case for its ownership group. Just five days after the Orchard Falls filing, the office tower at 700 17th St. in downtown Denver also filed for Chapter 11 protection, according to BusinessDen's earlier reporting, which noted both towers are owned by affiliates of Toma West. The two buildings were described as the only major Denver-area office properties to seek bankruptcy protection. A judge allowed foreclosure of 700 17th St. to proceed in June 2026, following a separate ruling that rejected Toma West's bankruptcy plan for that tower, according to the Denver Business Journal.
Denver's Office Market Still Struggling to Fill Space
The twin bankruptcies landed in a regional office market that has been slow to recover. About 19% of office space along the corridor stretching from the Denver Tech Center to Lone Tree sat vacant in the first quarter of 2026, according to CoStar data analyzed by Denver South and reported by Axios, down slightly from about 20% late in 2025. Axios cited Denver South senior director Christine Shapard in estimating that gap amounts to roughly 9 million empty square feet in the south metro area, part of a national trend in which U.S. office vacancy reached about 21% across 79 markets in the first quarter, up from 17% in 2020.
Other measures of the Denver market paint an even steeper picture. Bisnow reported that Cushman & Wakefield and CBRE recently put citywide vacancy between 26.6% and 28.7%, with CBRE recording 26.4% vacancy in the Southeast submarket that includes the Denver Tech Center. Denver tenants did take about 120,000 more square feet than they vacated in the second quarter, the site reported, calling it the city's strongest quarterly net absorption since the first quarter of 2022, though JLL's outlook still expects the office market to stabilize gradually rather than recover rapidly. Listings for Orchard Falls itself show the ongoing search for tenants, with Cushman & Wakefield advertising 21,884 square feet for lease at annual rates ranging from $18.50 to $22.50 per square foot.
