November 2011

  • Nov
    28

Ashley Furniture Takes Title to Rogers, Arkansas Outparcel

November 28, 2011

Ram announced today that Ashley Furniture, which previously signed a 12-year lease on 50,000 square feet of retail space within the Pleasant Crossing Shopping Center in Rogers, Arkansas, purchased its outparcel property for $2,575,000. The Ashley Furniture location formerly housed Sportsman’s Warehouse.

Ram took title to the former Sportsman’s Warehouse space in August 2010 as one of 38 underperforming notes secured by 39 retail properties. According to Ivy Greaner, Ram’s Chief Operating Officer, “It is an important part of our business strategy to secure underperforming property and add value. We were quickly able to establish Ashley Furniture as the tenant, who had been actively looking for the right home in the market. Their preference is to own their real estate so the sale of the parcel to them was favorable for both parties.”

The property is located just off Interstate 540 and North Dixieland Road. Other major tenants include Academy Sports and Walgreens.

  • Nov
    15

Ram Realty Purchases Jacaranda Plaza Loan

November 15, 2011

via South Florida Business Journal

An affiliate of Palm Beach Gardens-based Ram Realty Partners acquired the distressed mortgage on the Publix-anchored Jacaranda Plaza in Plantation.

This is one of three acquisitions Ram Realty made from an auction in October.

A commercial mortgage-backed securities (CMBS) fund managed by Miami Beach-based LNR Partners sold the $26.8 million mortgage to Jacaranda Plaza Partners, an affiliate of Ram Realty. The loan covers the 188,077-square-foot shopping center at 8101 and 8111 W. Sunrise Blvd., on the northwest corner of the intersection with University Drive. It was built in 1974.

According to CMBS analysis firm Trepp LLC, the mortgage has been delinquent since April and its operating income wasn’t enough to meet debt service. The largest tenants are Publix, with 37,887 square feet; Stein Mart, with 34,400 square feet; and CVS Pharmacy, with 10,800 square feet.

The shopping center was recently appraised at $12.75 million. Its occupancy rate as of April was 79 percent, according to Trepp.

The property is not in foreclosure. The borrower is Plantation Realty Associates, an affiliate of West Palm Beach-based American Commercial Realty Corp.

“We just closed last week so we are just initiating dialog with the borrower,” Ram Realty Chief Investment Officer Jim Stine said. “Until we see where all this plays out, I can’t tell you what the long-term strategy is.”

Clearly, the property is over-leveraged with debt and the debt service has been sucking up its cash flow, he said. Yet, it’s in a good location and it is anchored by solid tenants.

Ram Realty acquired this loan as part of a major auction of CMBS loans and properties by LNR in October. It also bought a mortgage securing a 100,000-square-foot shopping center in Raleigh, N.C., anchored by Lowe’s Food Stores and a repossessed 226-unit apartment project in Duluth, Ga., he said.

“We bid on six, so we had a 50 percent hit rate, which we are very pleased with,” Stine said.