First Allied – the four centres that have already gone bust

In February 2010, there was some media coverage of the foreclosure of First Allied's Crosswoods Commons shopping centre in Columbus, Ohio (see this link for example). Today I am publishing full details on Crosswoods Commons and three other First Allied centres that have already gone bust, including statements from the relevant CMBS' "Special Servicer" (the company tasked with dealing with delinquent loans) and how I know First Allied used to own these properties. These original documents are available on request.

In the case of three of the four centres, the Special Servicer actually states that First Allied is not willing to support the property. We must assume the same was true of The Shops at Cumberland Place too.

View Four bust First Allied centres in a larger map

Centre: The Crossings at Roswell, Georgia
Purchase price $6.0m
Original loan balance $4.8m
CMBS vehicle GECMC 2003-C2
CMBS property no. 80
Date loan became delinquent Dec-08
Date of foreclosure Mar-09

Comment from "Special Servicer" Apr 2010:
"04/06/2010: The loan was transferred to Midland as the Special Servicer on 11/13/2008 as a result of the borrower's written communication that they were no longer going to be able to make payments on loan. Midland communicated with the Borrower on several occasions where the Borrower stated that they were unwilling to put any additional capital into the property. As a result, Midland had a receiver appointed on 3/31/2009. The Receiver is currently working on leasing and selling the property. The Receiver had the property under contract for sale with an assumption of restructured debt with an expected closing in the next 30 to 45 days. The loan is currently due for 12/1/2008. The subject is a 38,937 sf strip center comprised of three single story buildings. The property is currently 37% physically occupied. Midland inspected the property on 12/10/2008 and found the property to be in good condition."

Evidence of First Allied's ownership: UCC statement identifying 270 Commerce Drive, Rochester, NY as the office of the centre's limited partnership

Centre: Hebron Heights, Texas
Purchase price $12.4m
Original loan balance $10.5m
CMBS vehicle JPMCC 2004-CIBC8
CMBS property no. 32 in prospectus, 31 in reports
Date loan became delinquent Sep-08
Date of foreclosure May-09

Comment from "Special Servicer" Dec 2008:
"12/12/2008- 10/2/08 - Loan paid to date 9/1/08. The subject property consists of a 59,429/SF neighborhood retail center built in 2000 and situated on a 10.36-acre site in Carrollton, TX. The loans were transferred due to Borrower stated he will no longer be able to make the payment on the loan. The loan paid to date is 9/1/08 The Borrower contrary to his comment in August did make the August 2008 payment on the A & B note on 9/8/08. The Borrower continues to market on a local and national basis and has some interest from possible tenants for a vacant 9,000/SF suite."

Evidence of First Allied's ownership: cached copy of First Allied letting brochure February 2009

Centre: The Shops at Cumberland Place, Georgia
Purchase price $6.4m
Original loan balance $5.135m
CMBS vehicle LBUBS 2004-C2
CMBS property no. 41
Date loan became delinquent Oct-08
Date of foreclosure May-09

Comment from "Special Servicer" Apr 2010:
"33,200 sf retail center in Smyrna, GA adjacent to Cumberland Mall. Center built in 1996 and acquired in 2003. Occupancy at 45%. Very little leasing activity with rents being offered in the $13/sf range and 18 month free rent on 5 year lease. Car raba's Restaurant is largest tenant at 6,400 sf and has lease restriction rights. Appraisal, BOV''s and Phase I inspections have been completed. Hayman Company has been appointed Receiver and Manager. Hayman has listed asset for sale and lease withTrans western and attempt to sell asset with financing available. Contract for sale and assumption of loan has been accepted and deposit confirmed. Anticipated closing in 30 days."

Evidence of First Allied's ownership: original mortgage showing limited partnership's address at 270 Commerce Drive, Rochester, NY

Centre: Crosswoods Common, Ohio
Appraised value at remortgage $4.62m
Original loan balance $3.935m
CMBS vehicle LBUBS 2005-C3
CMBS property no. 87 in prospectus, 86 in reports
Date loan became delinquent Jul-09
Date of foreclosure Mar-10

Comment from "Special Servicer" Oct 2009:
"The Borrower declined to provide additional equity but has agreed to cooperate in placing a receiver at the property with the right to sell."

Comment from "Special Servicer" May 2010:
"The receivership was effective 3/3/10 and Borrower provided keys, documents and supporting materials including operating account funds totalling approx $157,000.The funds include $26,000 in security deposits.The receiver signed a listing agreement and the property is currently on the market for sale or lease. The loan will be included, subject to a reserve price, in a national loan sale to be held on May 10-12."

Evidence of First Allied's ownership: foreclosure court documents