The Mall at Whitney Field, a Massachusetts mall foreclosed upon in 2010, has been purchased by Vintage Real Estate in a commercial real estate sale. The Mall at Whitney Field was first built in 1967 and was sold last in 2007 for $82 million. However, the lender was forced to foreclose upon the loan in 2010 with $72.2 million remaining on the balance. There are many valuable retailers located on the premises, including Sears, Macy’s, Burlington Coat Factory and Old Navy.
This sale is only one of many commercial sales that have been completed recently. A mortgage has been furnished by Houlihan-Parnes Realtors LLC and Q10 New York Realty Advisors LLC for the Five Towns Shopping Center in the amount of $45 million dollars. Retailers within this complex include K-Mart, Walmart, T-Mobile and Lowe’s. The loan has a 10-year term and a 3.425 percent interest rate. In Hollywood, a Walgreens location, built in 2011, has sold for $13.6 million.
Chesterfield Village Square was purchased by Viking Partners LLC and Walmart Stores has bought a plot of land at Case Grande Power Center. Shops at the Spring, a retail center, was purchased by Verdugo South LLC and the Plaza at the Pointe, another retail center, has been purchased by WP Realty. Finally, Agree Realty Corp picked up both a Petsmart and a Starbucks for a combined cost of $5.4 million.
Low commercial interest rates have encouraged many companies to invest in commercial real estate. Foreclosures offer additional opportunities for potential investors. Commercial real estate closings can be extremely complex and usually require the aid of an experienced real estate attorney to make sure that the deal is in the best interest of all involved parties. Contract negotiation, zoning laws and management laws are all areas that may provide complications without professional legal aid.
Source: National Real Estate Investor, “Vintage Real Estate Buys Massachusetts Regional Mall Out of Foreclosure“, May 30, 2013