Circuit City HQ returned to lender
November 17, 2009 by Al Harris
The former headquarters for defunct electronics giant Circuit City is back in the hands of the lender.
The 288,560-square-foot office building at 9950 Mayland Drive (one of two they had) was owned by New York-based Lexington Realty Trust.
The REIT disclosed the foreclosure in the company’s most recent 10-Q report, filed Nov. 6:
During the first quarter of 2009, a real estate asset (Richmond, Virginia property previously leased to Circuit City Stores, Inc.) with a carrying value of $18,091 (million) was written down to its fair value of $9,700, (million) resulting in an impairment charge of $8,391 (million). The asset was conveyed to the mortgage lender through a foreclosure during the three months ended September 30, 2009 in satisfaction of the $15,458 (million) outstanding mortgage loan.
In 2000, the company took out a commercial mortgage backed securities loan on the property totaling $17 million and left an unpaid balance of nearly $15.5 million. The loan was originated with Bear Stearns, and the special servicer is listed as GMAC by Trepp, LLC; a provider of commercial real estate data.
BizSense was unable to contact the loan servicer, and it is unclear whether the property will be marketed for sale or lease, or when. It is also unclear where another big user may come from.
A retail center in Powhatan has also gone back to the lender.
Powhatan Wellness Center, a 19,500-square-foot retail center at 1660 Anderson Highway, was recently foreclosed upon with an unpaid CMBS debt of $2.79 million, according to Trepp.
The local commercial brokerage firm Thalhimer will be marketing and leasing the center.
Al Harris covers commercial real estate for BizSense. Please send news tips to Al@richmondbizsense.com.
[...] The building’s previous owner, New York-based Lexington Property Trust, defaulted on a $17 million commercial mortgage during the third quarter of last year. The lender foreclosed on the property with a balance of $15.5 million left unpaid. (You can read more about that in a BizSense story here.) [...]