Central Street Capital sues Lohi building buyer

Health care entrepreneur Rob Salazar’s family firm Central Street Capital has been based for years out of a small office in Prospect on Central, the apartment building it developed at 2500 17th St. in Lohi.

When Central Street sold the building in early August, the firm signed a lease for the office space with the new owner.

Three months later, the Salazar family is regretting that decision.

In early November, Central Street sued 1661 Central Operator LLC, which bought the building for $34 million. Central Street says it wants its lease terminated, arguing its new landlord has failed to maintain the building’s “first class” quality as the contract requires.

1661 Central Operator LLC lists an office address in Golden. Emails sent by Businessden to the company and its attorney requesting comment were not returned immediately.

Prospect on Central consists of 57 apartments, several retail units leased to tenants such as Metropolis Coffee and the office space on the building’s second floor.

According to the lawsuit, while the sale was in the works, Central Street raised “serious concerns about entering into a new lease with the Landlord, specifically regarding Landlord’s ability, willingness, and commitment to maintain the Building in a condition similar to its current condition.”

That prompted the addition of a clause in the lease mandating it remain at a “first class” quality.

But the problems began quickly after the deal closed, according to Central Street.

On Sept. 10, Central Street requested the lease be terminated citing the “first class” clause.