The three-building retail property at 1264-1282 Alverser Plaza sold last week for $1.2 million. (Michael Thompson)
A Midlothian retail strip was sold in an eleventh-hour deal last week as its loan was coming due, while a nearby property that also borrowed at the height of the real estate boom is having loan troubles of its own.
The three-building, 11,200-square-foot retail property at 1264-1282 Alverser Plaza sold Aug. 11 to Nandini Investments LLC for $1.22 million. The parcel is part of the larger Alverser Commons, a retail development at Alverser Drive and Old Buckingham Road.
Read Goode, a managing broker with Divaris Real Estate, developed the property and was the seller in the deal. He said Nandini Investments is controlled by a Richmond-based investor and another from Northern Virginia – both of whom are first-time commercial real estate investors and declined to comment. Goode said they have no plans for major changes at the property.
“I went with these guys because they were genuine,” Goode said, adding he received seven offers for prospective buyers. “(The deal) closed one hour before the loan was due.”
Goode said he developed the properties with a loan issued in 2006 by Credit Suisse for $1.2 million.
“That loan became typical of a lot of loans right after the recession,” Goode said. “The rents in the market went down 40 percent.”
With the economic downturn, rents were higher than what tenants could afford, forcing Goode to lower the rates to keep the storefronts occupied. When rental income became lower than Goode’s monthly loan payments, he entered a forbearance agreement with his lender to reduce his payments. Meanwhile, Goode continued to manage the property and began looking for a buyer to take it off his hands.
“I made the decision to sell it and move on, rather than own it long-term,” Goode said.
The property consists of three separate buildings: a 2,200-square-foot free-standing Pure Barre fitness studio, and two connected buildings that total about 9,000 square feet and have been leased to Ruby Star nail salon and Steinway Piano Gallery. The parcel was most recently assessed at $1.1 million, according to a Chesterfield record, and had been listed for $1.4 million, according to a Divaris flyer.
Goode formerly owned or partly owned other properties in Alverser Commons, including storefronts occupied by Flower Makes Scents, Tazza Kitchen and C&F Bank.
Goode said he broke even with last week’s sale.
“The takeaway here is that a lender and a borrower working closely together and being realistic about the current and future conditions of the market were able to enter an agreement that in the end everyone came out whole,” Goode said. “Nobody made money. Nobody lost money.”
About two miles east of Alverser Commons, another shopping center is getting some extra scrutiny from its lender.
The 180,000-square-foot Pocono Crossings at 10400 Midlothian Turnpike was transferred in July to special servicer LNR Partners Inc., according to commercial loan tracking firm Trepp.
Special servicers are hired by commercial loan noteholders to manage loans when a borrower may be at risk of falling behind on payments. A special servicer’s involvement does not mean that foreclosure of the property is imminent.
Built in 1988, Pocono Crossings is owned by an LLC tied to Stoltz Management of Pennsylvania, which also handles leasing at the shopping center. It bought the property in 2006 for $7 million, near the peak of the pre-recession boom.
The company took out a loan on the property that same year for $16.7 million, according to Trepp. It has a current balance of around $15.6 million, and the borrower has “expressed difficulty in paying off the loan,” the Trepp report states.
Pocono Crossings has an 11 percent vacancy rate and is home to Burlington Coat Factory, Kumon Math and Reading Center, Chuck E. Cheese’s, Tuesday Morning, and New Hong Kong Buffet.
Pocono Crossings was most recently assessed at $5.7 million. Dan Drake of Stoltz wouldn’t comment for this story.
The three-building retail property at 1264-1282 Alverser Plaza sold last week for $1.2 million. (Michael Thompson)
A Midlothian retail strip was sold in an eleventh-hour deal last week as its loan was coming due, while a nearby property that also borrowed at the height of the real estate boom is having loan troubles of its own.
The three-building, 11,200-square-foot retail property at 1264-1282 Alverser Plaza sold Aug. 11 to Nandini Investments LLC for $1.22 million. The parcel is part of the larger Alverser Commons, a retail development at Alverser Drive and Old Buckingham Road.
Read Goode, a managing broker with Divaris Real Estate, developed the property and was the seller in the deal. He said Nandini Investments is controlled by a Richmond-based investor and another from Northern Virginia – both of whom are first-time commercial real estate investors and declined to comment. Goode said they have no plans for major changes at the property.
“I went with these guys because they were genuine,” Goode said, adding he received seven offers for prospective buyers. “(The deal) closed one hour before the loan was due.”
Goode said he developed the properties with a loan issued in 2006 by Credit Suisse for $1.2 million.
“That loan became typical of a lot of loans right after the recession,” Goode said. “The rents in the market went down 40 percent.”
With the economic downturn, rents were higher than what tenants could afford, forcing Goode to lower the rates to keep the storefronts occupied. When rental income became lower than Goode’s monthly loan payments, he entered a forbearance agreement with his lender to reduce his payments. Meanwhile, Goode continued to manage the property and began looking for a buyer to take it off his hands.
“I made the decision to sell it and move on, rather than own it long-term,” Goode said.
The property consists of three separate buildings: a 2,200-square-foot free-standing Pure Barre fitness studio, and two connected buildings that total about 9,000 square feet and have been leased to Ruby Star nail salon and Steinway Piano Gallery. The parcel was most recently assessed at $1.1 million, according to a Chesterfield record, and had been listed for $1.4 million, according to a Divaris flyer.
Goode formerly owned or partly owned other properties in Alverser Commons, including storefronts occupied by Flower Makes Scents, Tazza Kitchen and C&F Bank.
Goode said he broke even with last week’s sale.
“The takeaway here is that a lender and a borrower working closely together and being realistic about the current and future conditions of the market were able to enter an agreement that in the end everyone came out whole,” Goode said. “Nobody made money. Nobody lost money.”
About two miles east of Alverser Commons, another shopping center is getting some extra scrutiny from its lender.
The 180,000-square-foot Pocono Crossings at 10400 Midlothian Turnpike was transferred in July to special servicer LNR Partners Inc., according to commercial loan tracking firm Trepp.
Special servicers are hired by commercial loan noteholders to manage loans when a borrower may be at risk of falling behind on payments. A special servicer’s involvement does not mean that foreclosure of the property is imminent.
Built in 1988, Pocono Crossings is owned by an LLC tied to Stoltz Management of Pennsylvania, which also handles leasing at the shopping center. It bought the property in 2006 for $7 million, near the peak of the pre-recession boom.
The company took out a loan on the property that same year for $16.7 million, according to Trepp. It has a current balance of around $15.6 million, and the borrower has “expressed difficulty in paying off the loan,” the Trepp report states.
Pocono Crossings has an 11 percent vacancy rate and is home to Burlington Coat Factory, Kumon Math and Reading Center, Chuck E. Cheese’s, Tuesday Morning, and New Hong Kong Buffet.
Pocono Crossings was most recently assessed at $5.7 million. Dan Drake of Stoltz wouldn’t comment for this story.