Retail

$20.7 Million Non-Performing Retail Loan

Birmingham, Alabama United States
Asking Price Contact for pricing
Area Size
NOI Net Operating Income N/A
Cap Rate N/A

Key facts

Loan Status Non-Performing
Listing Type Retail

Property description

Jones Lang LaSalle ("JLL") has been retained on an exclusive basis by the lender to arrange the sale of a $20.7 million non-performing mortgage loan (the "Loan") secured by a first-priority lien on the fee simple interest of a 224,500 SF retail property in southeast Birmingham, AL (the "Property"). The CMBS loan was originated in October 2018 with a principal balance of $21.0 million ($93.5 SF) and performed until May 2020, when pandemic restrictions and lockdowns led to the Borrower's default. The Loan provides a unique opportunity for an investor to acquire a COVID-defaulted Loan with in-place cash flow and value-add upside.


The collateral for the Loan is a 224,500 SF retail property in southeast Birmingham, AL. Constructed in 2004 on seven parcels totaling 36.957-acres, the Property consists of six (6) one-story retail buildings. The Property, anchored by a Hobby Lobby (25.0% of NRA) and AMC Classic movie theater (30.3% of NRA), is currently 87.1% occupied as of March 2022.


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Investment highlights

SUPER REGIONAL RETAIL CENTER: The Property is the larger portion of a two phase center which is ranked nationally within the top 87th percentile of neighborhood centers and within the top 94th within the state of Alabama centers, according to Placer.ai. The center sees  approximately 1.85 million visitors per year.

STICKY IN-PLACE OCCUPANCY: The center allows an investor to acquire a distressed loan secured by cash-flowing collateral with an in-place occupancy of 87.1%, including two anchor tenants who jointly occupy 55.2% of NRA. All in-place leases at the Property are sticky, with none subject to co-tenancy clauses, allowing an investor to benefit from additional cash flow through further lease-up.

HIGHLY TRAFFICKED CORRIDOR: The Property sits directly off US Highway 280, which sees over 57,000 average daily traffic volumes that run perpendicular to Interstate 459, a partial ring around the southeast side of Birmingham, AL which sees over 119,000 vehicles.

EARLY COVID DEFAULT: The Loan defaulted early into the COVID-19 lockdown, allowing an investor the opportunity to acquire a position that has been non-performing for over 24 months in Alabama, a non-judicial foreclosure state.

Last Updated Date: 30 Jun 2022

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Last Updated Date: 30 Jun 2022

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