Presidio Faces Loan Default Action from Wells Fargo Over Colorado Property

The lender has revoked rental income rights and may pursue foreclosure on the Shea Center II asset.

January 26, 2026

Loan Miss Triggers Default Conditions

Presidio Property Trust is navigating a high-stakes situation following a loan default notice tied to one of its Colorado properties. On January 21, 2026, Wells Fargo Bank issued the notice to both Presidio and its subsidiary, NetREIT SC II, LLC, after they missed the January 5 repayment deadline on a $17.7 million commercial real estate loan.

The loan—originally issued in 2015—was secured by the Shea Center II property in Douglas County. Under the terms of the loan agreement, missing the repayment deadline triggered default conditions. That means the entire outstanding balance is now accruing interest at a higher rate: either 5% above the original 4.92% rate or the legal maximum, whichever is lower.

Lender Revokes Income Rights, Foreclosure Possible

The lender didn’t stop there. It’s also revoked the borrower’s right to collect rental income from the property and signaled that foreclosure or partial foreclosure may follow. The property was pledged as collateral, and that security is now at risk.

Presidio is reviewing its options to cure the default and retain control of the asset. No resolution has been announced yet.

What Happens Next

For a real estate investment firm, this kind of situation demands quick action and a clear plan. With interest rate pressures and loan maturities creating tighter margins across the sector, Presidio’s next steps will be watched closely by stakeholders looking for signs of stabilization—or further disruption.