Property details
Texas Shopping Mall Pre-Foreclosure Opportunity, Southwest Region
Property Description
Texas Shopping Mall Pre-Freclosure Opportunity
Small Window of Opportunity
Located in one of the Top 3 largest cities in Texas.
Originally, the owners were trying to refinance the mall since their loan had just matured in February. Unfortunately, two factors made this difficult to accomplish. First, the lender sold the note to a 3rd party investor who’s sole intent was to foreclose and take ownership and secondly the Coronavirus situation caused the term sheet the owner had secure to be canceled.
Now there is a foreclosure date scheduled for May 5th. The owners are ready to sell the property at a discount around $25-26m, but obviously it needs to close within the next 2 weeks. Once the economy has re-opened and businesses have been allowed to turn the lights back on, it should take too long for things to return to normal. The Mall was generating about $2.8m in NOI last year and it was appraised in Jan 2019 by CBRE for $31,050,000.
Their main anchor tenant is Burlington and they have just renewed their lease for another 5 years. On the other side of the mall is Macy’s (Macy’s owns this location separately) which has invested over $25m in remodeling over the years. This Macy’s location is not one of the stores closing nationwide, in fact it is one of the highest grossing locations for Macy’s in Houston.
The owners are obviously very motivated to sell at a discount. In addition, the Property Manager would be willing to stay on and help with the new ownership transition as well as restarting the Mall after the Coronavirus limitations have subsided.
Images
Highlights
- Status:
- Available
- Price:
- $26,000,000
- Cap Rate:
- 11.00%
- Annual Rent:
- $2,800,000
Property Information
- Property Type:
- Shopping Center
- Industry Type:
- Retail
- Units/Spaces:
- 1
- Purchase Tenure:
- Fee Simple
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.