A Short Pump shopping center has a date with the auction block.
The 39,000-square-foot Shoppes at Twin Oaks is headed to foreclosure after its owner and developer fell behind on its loan beginning last spring.
The five-acre property at Cox Road and Westerre Parkway is owned by developer Nathan Shor and Cox Road LLC.
LNR, a special servicer handling the loan, has scheduled an auction for March 11 at 10:30 a.m. on the Henrico County courthouse steps.
“We’ve been in discussions with [the lender] for a year, trying to figure out how to restructure the loan,” Shor said. “We offered them good money, but they weren’t going to budge.”
According to a report from the real estate tracking firm Trepp, the commercially backed mortgage on the property has been delinquent since April 2012. The $8.2 million loan has a balance of $7.74 million.
Berkadia Commercial Mortgage was the original lender, according to Trepp.
Shor said the center is about 12 percent vacant. But a few empty storefronts aren’t the problem: Twin Oaks isn’t making in rent what it was before the recession.
“The rents … are about 40 to 50 percent less than when the loan was placed in the property,” Shor said. The shopping center was built in 2006.
According to Trepp, the center has seen a precipitous drop in revenue. In 2009, the center posted $900,000 in revenue. By 2012, that number had dropped to about $447,000.
Twin Oaks doesn’t boast any large anchor tenants but has a collection of smaller retailers including Cupertino’s New York Bagels and Deli, Big Al’s Sports Bar and Grill, a CrossFit gym, Bank of America and a Bikram yoga studio. The property consists of three small separate strips centers.