A prominent office building and parking garage in the Granary District appear to be headed to a foreclosure sale after a $97.3 million default, according to a Friday court hearing.
Attorneys representing Industry SLC, which was one of the first buildings to rise up in the Granary District, said during a virtual court hearing Friday they won’t fight the building going into receivership, setting up a potential foreclosure sale date in March.
David Pinkston, an attorney representing Industry SLC, said during the hearing that his clients will not oppose appointing a receiver. However, Pinkston said there’s details that need to be worked out with Recursion and Denali Therapeutics — two biotechnology companies that are currently suing Industry over their leases — before that receivership can move forward.
“We’re not looking to fight the appointment of the receiver. We just want to address these couple of issues we’ve raised with them and get that worked out in the next week or so, so that the receivership can proceed forward,” Pinkston said.
Recursion and Denali both are slated to file motions to intervene in the case, as the companies each had an attorney present during the virtual hearing Friday. Both companies are locked in litigation with Industry SLC over their leases, alleging Industry didn’t finish their office spaces and resulted in lost business.
Industry SLC initially sued Recursion in June 2023 alleging the company didn’t honor its lease and requested the company pay fines. Recursion later filed a counterclaim alleging they found construction issues within the Industry building, which is why it never moved into the office space. The case is still ongoing, as court records indicate a hearing is scheduled for Dec. 19.
Denali sued Industry SLC in January 2024, alleging the office had construction delays and a number of defects that led Denali to terminate its lease. Court records show the case is still ongoing, though no future court cases have been set.
Either way, the Industry SLC building appears headed for foreclosure next year. Engels Tejeda, an attorney for Acore Capital Mortgage, the lending company that filed the lawsuit, said during the hearing there is a foreclosure scheduled for early March. 
The Friday court hearing follows a complaint alleging Catalyst Opportunity Funds defaulted on a $97.3 million loan in September. Catalyst, a private equity firm based in Utah, took over the Industry SLC building and a nearby, unfinished parking garage following the collapse of Makers Line, the company that originally built and operated Industry SLC.
It’s not clear what could happen with the nearly 1,000-stall parking garage that sits near the center of the budding Granary District. The garage is supposed to be used for shared parking among many of the thousands of residents, workers and shoppers who are expected to visit the Granary once more projects are built out.
The garage is incomplete and was built on a long-term ground lease. An eventual buyer would have to work with the garage landholder to comply with the lease.
The next court hearing regarding the Industry receivership and foreclosure is scheduled for Jan. 9 for a status and scheduling conference.
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