May 23, 2017
A private foreign buyer paid $92 million to get control of a pair of prime retail assets that had defaulted on loans in Westbury, NY, a wealthy Long Island suburb.
The buyer got The Mall at the Source, a 723,326-square-foot, enclosed mall, free and clear of existing debt in a deed-in-lieu of foreclosure transaction. At the same time, the buyer bought the defaulted loan on the Fortunoff Building adjoining the mall, once the home of the anchor store Fortunoff.
REITs, developers, and large institutional retail owners, local developers all showed interest in the properties. “In the end, a foreign capital source was most aggressive on pricing and terms,” said Jose Cruz, senior managing director for HFF, which represented co-sellers.
The seller included LNR Partners, a manager of a subsidiary of Starwood Property Trust, and C-III Asset Management, the special servicer of a REMIC trust.
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