Ram Realty Purchases Jacaranda Plaza Loan

Posted by & filed under Uncategorized.

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.

Leave a Reply

  • (will not be published)