A lender has foreclosed on another apartment complex held by embattled local landlord Summit Communities.
An affiliate of Rialto Capital took ownership of the Arboreta Apartments, at 2038 S. Vaughn Way in Aurora, through a foreclosure auction on Wednesday. No one else bid.
The 268-unit complex was purchased by Denver-based Summit in 2022 for $69.5 million.
“We’re opportunistic, so we just look for properties that need renovations,” founder Jeff Young told the Denver Business Journal at the time, saying he planned to raise monthly rents by $150 to $200.
Summit financed the purchase with a $58 million loan from Rialto, which was supposed to be paid off by May 2025.
In late 2025, Rialto said in court documents that Summit stopped making interest-only payments in February 2025. A receiver was appointed to oversee the building at the lender’s request.
Rialto initiated the foreclosure process this past March.
Summit Communities did not respond to a request for comment.
Financial distress is on the rise in Denver-area apartment buildings because of high interest rates and an oversupply of units, leading to receiverships and foreclosures. And Summit has been hit especially hard.
In January, a lender foreclosed on Summitap Highline Lofts apartment complex in Aurora, which it paid $29 million for in 2022.
Two other Summit properties, the 322-unit Boulder Crossroads and 104-unit Meadows at Town Center, both of which are in Adams County, were placed into receivership in the spring.
Read more from our partner, .
