Waste Management threatened with eviction from Denver recycling facility
While it waits for a new $100 million sorting facility to be built in Aurora, Waste Management claims it is being wrongfully evicted from its current Denver recycling facility.
The national trash company has leased several buildings at 3600 E. 48th Ave. in the Elyria-Swansea neighborhood since 2005 without much problem, according to a lawsuit it filed last week.
“Waste Management Recycle America faithfully paid all rent and performed its lease obligations,” it wrote. “But in 2024, (Armstrong Capital Development) purchased the buildings and, unlike the prior landlord, immediately demanded that WMRA perform almost $2 million in repairs, despite knowing the condition of the buildings before its purchase.”
Armstrong, a private equity firm headquartered in Greenwood Village, paid $18.3 million for the property early last year. On July 21, it gave Waste Management an ultimatum, according to the company: Either make more than $1 million in repairs or be kicked out.
“The threatened eviction has ramifications far beyond just the relationship of WMRA and ACD,” according to the former’s lawsuit. “Since a huge amount of recycling flows through the WMRA 48th Street facility, the threatened eviction would disrupt an estimated 10 to 15 percent of all recycling in the Denver metropolitan area. That is a serious public impact.”
Jarrett Armstrong, the CEO of Armstrong Capital Development, declined to talk about that.
“Although we don’t agree with Waste Management’s assertions in the lawsuit, our practice is not to comment on pending litigation,” Armstrong told BusinessDen. When asked if he will be evicting Waste Management from 3600 E. 48th, he said, “Any potential eviction of Waste Management similarly concerns pending litigation and ACD does not comment.”
Waste Management’s spokespeople and lawyers did not answer requests for an interview.
The dispute between tenant and landlord concerns a warehouse roof that dates to the 1940s and has leaked since Waste Management moved in, according to the company. It has paid for several roof repairs and replacements over the years, its lawsuit explains.
In 2023, Waste Management signed a lease through 2026, with the expectation it will move to its new Aurora location after that. Then, Armstrong bought the property and almost immediately demanded that Waste Management make $1.9 million in repairs, the tenant alleges.
“While WMRA was surprised by this sudden change from the position of any prior landlord, and disputed the extent of repairs demanded, WMRA has substantially complied with a large portion of Armstrong’s demands” by landscaping, painting and repairing the warehouse.
Still, its landlord is demanding more — and unfairly threatening to evict, the tenant claims.
“Waste Management vigorously opposes the defendant’s improper attempt to use eviction proceedings as leverage … and thereby threaten continued waste recycling for large segments of Denver and the surrounding communities,” according to the July 23 lawsuit.
Waste Management’s lawyers are Dana Eismeier and Michael Ley at Burns Figa & Will.
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While it waits for a new $100 million sorting facility to be built in Aurora, Waste Management claims it is being wrongfully evicted from its current Denver recycling facility. The national trash company has leased several buildings at 3600 E. 48th Ave. in the Elyria-Swansea neighborhood since 2005 without much problem, according to a lawsuit…