Tuesday, 9 March 2010

First Allied Corporation - even worse than I suspected?



About half an hour after posting my look at the Glazers' US property interests, I noticed I'd missed an email from someone pointing out that one of their shopping centers has gone into foreclosure.  The Crosswoods Commons center in Columbus Ohio is only a tiddler, but what's happened goes to emphasise the problems they've got....
"Crosswoods strip center in foreclosure
A strip center in the Crosswoods complex in north Columbus has gone into foreclosure.

Charlotte, N.C.-based Bank of America Corp. on Thursday filed to foreclose on the 20,000-square-foot center at 110-158 Hutchinson Ave. Next to the Marcus Corp. movie theater at Crosswoods, the strip is home to a mix of restaurants.
Bank of America filed the suit in U.S. District Court in Columbus against Crosswoods Commons Shopping Center Columbus Ohio LP, a partnership that includes Rochester, N.Y.-based First Allied Corp. According to First Allied’s Web site, the real estate firm owns and leases more than 6.7 million square feet of retail space in 20 states. The Crosswoods center was First Allied’s first acquisition in Ohio, and the company said it considered it a good deal because it included tenants such as BW-3, Chipotle, Stauf’s Coffee and Panera Bread.
Today, the center is occupied by Jed’s BBQ & Brew, SushiKo, Lotus Grill and Chipotle. Two spots in the center are empty.
Alan Bobrowski, First Allied’s general manager, declined to comment on the foreclosure."
Full story here:
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20100226&id=11169985

And details on the property on the First Allied site here:
http://www.firstalliedcorp.com/propertydetail.aspx?id=52



LUHG

7 comments:

Red Kharma said...

You may be interested in this anecdotal posted by what I believe to be a banker (or similar) poster on HPC.co.uk in relation to tenants gaming CRE landlord rents. Could be highly relevant to the Glazers situatio........

http://www.housepricecrash.co.uk/forum/index.php?showtopic=138697

Quetzalcoatl said...

Nice blog andersred, very informative. I'm still amazed by how many Reds - even those around me in N4401 I chat to - still don't get how parlous it is. Be great if you could get the financial analysis out in nice easy gobbets, regularly, mantra-like to the masses - until the penny drops for every last fan.

Anonymous said...

As a tenant for one of First Allied's US properties, I can attest that First Allied is ruthless and highly unfair. It has caught up with them with empty strip malls, tenants unable to pay rent, and legal bills they choose to incur. I nearly was ruined by their ruthlessness and misrepresentations. If it weren't for sheer fear over their resources and power, I would make what happened to me known.

andersred said...

That's very interesting....

Feel free to drop me an email in confidence if you'd like to tell me more.

andersred@btinternet.com

anders

Anonymous said...

The only way to accomplish your goal is to in fact 'unite' and stop buying tickets. Boycott an entire game...start there.

The same thing needed to happen in the US in the commercial operations. The only way to have had any impact with the Glazer's dealings with small business tenants was to create tenant associations and audit the massive fees passed on to tenants. That didn't happen and the Glazer's win. You need strong lawyer representation and a 'united' front.

There is a well publicized story about a Glazer group of tenants who sued glazer in early 2000s because he charged money for having a pet and more than 2 children living in a mobile home. The group united under an attorney and got the fees dropped.

This is what you are dealing with.

If you want to find out more about the US holdings of First Allied, buy a D&B business report for $179. This still may not give you a full picture as they sue under their subsidiary of the subsidiary names.

I hope your movement turns out to be more than a scarf campaign and can really have significant impact. The Glazers are ruthless and proud of it.

Rex said...

Hi to all MUST supporters.

I note that the reports state that First Allied re-morgaged with Lehman Brothers. Does this mean that Barclays Capital now own these mortgages?

Unfortunately Barclays' Annual report does not go down to that level of detail but if the First Allied loans are non- performing they would need to be reported in detail to the SEC.

The question is are the Red Knights able to access this information, because in the USA I believe it is a matter of public record.

Anonymous said...

This is a very interesting blog and I too as a tenant am amazed at the sole human distruction that First Allied is capable of. They lie, they cheat, they destroy.
I have a question and was wondering if any of the other aquired properties/tenants have thought of this idea before. If united can we sue for incompetence of management? They have taken the best piece of property in our resort town and turned it into an empty undesireable mall where not one person will touch a lease. Because of their business antics and morals many have suffered. It is also good to know that it is just not the stuffed suits that sit in the New York offices that are not capable of a decent conversation with another human being but also the Glazers...ruthless and proud of it? Wow...