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Foreclosed Granary District campus rebrands as Foundry43 under ACORE Capital

Foreclosed Granary District campus rebrands as Foundry43 under ACORE Capital

Money Moves Salt Lake City, UT local

Lender ACORE and Lincoln Property Company relaunch the Granary District campus after foreclosure

Today: Building Salt Lake reports Foundry43 relaunch

Overview

Updated 1 hour ago

The Granary District campus that opened in 2020 as a celebrated adaptive-reuse project has a new name and a new owner. Foundry43 is controlled by ACORE Capital, the lender that foreclosed after Catalyst Opportunity Funds defaulted on a $97.3 million loan.

ACORE and partner Lincoln Property Company have finished the stalled parking garage and are building 64,000 square feet of new creative office space. Whether tenants come will test if the Granary District's revival continues, or if the lender made the same bet Catalyst did.

Why it matters

If Foundry43 can't fill its new creative office space, the Granary District loses its anchor project and lenders will think twice about similar adaptive-reuse deals.

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Key Indicators

$103.7M
Amount ACORE alleged Catalyst owed
Principal, interest, and fees claimed in ACORE's November 2025 Business and Chancery Court complaint.
230,000
Existing leasable square feet at Foundry43
The converted 1943 foundry campus before new construction.
1,000
Parking garage stalls completed under ACORE
The garage was unfinished when Catalyst defaulted in 2025.
$600M
Catalyst's committed Granary District investment
Total Opportunity Zone commitments, per Utah Business.

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People Involved

Organizations Involved

Timeline

June 2020 September 2026

12 events Latest: Today Showing 8 of 12
Tap a bar to jump to that date
  1. Building Salt Lake reports Foundry43 relaunch

    Today Announcement

    Building Salt Lake reports on Foundry43 relaunch; JLL retained to lead leasing of new creative office space.

  2. Foundry43 rebrand announced

    Rebranding

    ACORE and Lincoln Property announce the property relaunches as Foundry43, with JLL leading leasing.

  3. ACORE signs deed conveying parcels to Marwood

    Ownership

    ACORE signs a special warranty deed conveying Industry parcels to Marwood Investment Trust.

  4. Catalyst defaults on $97.3M loan

    Financial

    Catalyst defaults on the $97.3 million loan from Delphi CRE Funding LLC, managed by ACORE Capital.

  5. Catalyst takes over unfinished parking garage

    Ownership

    Catalyst takes over the unfinished 1,000-stall parking garage next door to Industry SLC.

  6. Makers Line collapses

    Collapse

    Original developer Makers Line collapses amid at least 15 subcontractor payment lawsuits in Utah.

  7. Catalyst takes over office building

    Ownership

    Catalyst Opportunity Funds takes over the Industry SLC office building after the original developer stumbles.

  8. Industry SLC opens in converted foundry

    Opening

    Industry SLC opens in a converted 1943 foundry, launching the Granary District revival.

Scenarios

1

Foundry43 fills up as Granary anchor

Possible Resolves by End of 2027

Discussed by: Building Salt Lake; JLL's Kyle Jeffers hints at strong tenant interest

ACORE and Lincoln have finished the stalled parking garage and are building 64,000 square feet of new creative office space. If JLL signs anchor tenants, the campus could reclaim its role as the Granary District's anchor project. Success would validate ACORE's decision to hold the property rather than sell at a loss.

2

Foundry43 struggles, occupancy lags

Possible Resolves by End of 2027

Discussed by: The Salt Lake Tribune's foreclosure coverage; no public bullish forecast

The creative office market in Salt Lake City may not absorb more space. If no anchor tenant signs and occupancy stays low, ACORE could face the same problem Catalyst did: carrying debt on a building without enough income to cover it. That could force another refinancing or a discounted sale.

3

ACORE sells Foundry43 to a new investor

Possible Resolves by Q2 2027

Discussed by: No public prediction; typical pattern for lender-owners in commercial real estate

Real estate lenders generally prefer to exit rather than hold. Once the garage is finished and the campus is stabilized, ACORE or Marwood could sell Foundry43 to an institutional investor or another operator. A sale would let ACORE recover part of its $103.7 million claim without managing an office building long-term.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2008-2011

2008-2009 Commercial Real Estate Distress

When the financial crisis hit, commercial property values fell 30-40% nationwide. Banks ended up owning office towers and malls after foreclosure, and had to hold or sell at steep discounts. 'Loan-to-own' became a common strategy for distressed debt investors.

Then

Many banks booked large losses; some failed. The market took years to clear excess inventory.

Now

Lender-owned properties became a fixture of the post-2009 market, and the experience reshaped how banks approach commercial lending since.

Why this matters now

ACORE is now a lender-owner of Foundry43, facing the same choice banks did in 2009: hold and reposition the asset, or sell it at a loss to move on.

1990s-2010s

The Pearl District, Portland (1990s-2010s)

Portland's Pearl District was rail yards and warehouses until the 1990s, when developers began converting industrial buildings into lofts and offices. Early projects drew praise but struggled financially, and several developers went bust as the market absorbed the initial oversupply.

Then

Some early conversions sat vacant for years; developers defaulted on loans.

Now

The district eventually filled in as a thriving mixed-use neighborhood, but only after two decades of patient redevelopment by multiple owners.

Why this matters now

The Granary District is in the same phase Portland's Pearl District was in during the 1990s: early momentum, developer failures, and a long road before full maturity.

Sources

(4)

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