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Old 01-24-2019, 03:13 AM
 
778 posts, read 785,240 times
Reputation: 430

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Quote:
Originally Posted by CRWMSPPGH View Post
I like Cadens idea of moving Brickstreet out and repurposing the space. I have the perfect location for them. The recently available Commerce Square building. It is a smaller 17 story class A space that desperately needs tenants with Huntington Bank relocating to Laidley Tower. Remodel it to fit Brickstreets needs and move those hundreds of workers into that end of town. That would help boost those small businesses and restaurants on Capitol, Quarrier and Hale Streets and also give them indoor parking. Win Win for all parties. Then repurpose Brickstreet's old space with another department store or an AMC Theatre or entertainment venue.

I agree on everything you state here, it is a great outcome for everyone. I just don't think BrickStreet would go for it. They moved out of the 12-story City Center East tower in Kanawha City because they said their people spent half the day riding elevators. I believe that is untrue, I have been inside their current location many times and no one goes any where fast in there. It is your typical open floor plan with a bunch of post-menopausal women squatting on drab cubicles at computers or on the phone. No one is walking around.


But, the old 18 floor commerce square building would be a good fit for them, but the price is steep. It last sold for 81 million which is an eye watering price for a tower in Charleston. It smells fishy. The 12 store City Center West tower was bought by the WV Lottery for 18 million in 2016. Chase Bank bought the 18 story Banc One tower in 2010 for only 16 million. I am not sure what the market value is of Commerce Square but it can't be more than 20.
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Old 01-24-2019, 06:59 AM
 
1,889 posts, read 2,130,353 times
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For that idea, it would also depend on how long the lease is for Brickstreet and WOWK to have that space.
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Old 01-24-2019, 10:41 AM
 
1,854 posts, read 2,214,637 times
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Not much info yet, but CTC just sold for $35 Million at auction.

Sounds like US Bank owns it now or at least that is the rumor (they were the lenders).

http://wvmetronews.com/2019/01/24/ch...owner-unknown/

Last edited by WVUmatt; 01-24-2019 at 11:13 AM..
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Old 01-24-2019, 02:43 PM
 
Location: ADK via WV
6,003 posts, read 8,989,576 times
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https://www.wsaz.com/content/news/Ch...443139563.html
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Old 01-24-2019, 04:32 PM
 
26 posts, read 27,437 times
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I can’t imagine WOWK leaving their current location. For one thing, they just renovated their studios. That’s a pretty hefty expenditure. Secondly, the cost to build a tv station would be ridiculous. The studio is one thing but you’d have to build an area for the master control department. That’s the guts of any tv station. I seriously doubt they’ll leave anytime soon.
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Old 01-24-2019, 07:50 PM
 
778 posts, read 785,240 times
Reputation: 430
Quote:
Originally Posted by WVUmatt View Post
Not much info yet, but CTC just sold for $35 Million at auction.

Sounds like US Bank owns it now or at least that is the rumor (they were the lenders).

http://wvmetronews.com/2019/01/24/ch...owner-unknown/


Spent much of the day tapping resources for details on the transaction and what it may mean for CTC. I was a bit anxious when it was announced that a "private party" purchased the mall, but I have since become optimistic about the entire ordeal.


Prior to today's sale, Cafaro owned 50% of the mall, Forest City owned 26% and QIC owned 24%. When it went into default, all of those parties were a party to the default. This sent the property into receivership under the managerial control of CBRE. CBRE then tabbed Boyd Resources to act as receiver. CBRE stopped payment to CURA for the monies generated by the parking garages. A ruling was made that CBRE would garner $800,000 and Boyd Resources $300,000 of the escrow produced by those revenues. I had expected this to go to CURA.

This brings us to today's sale. The bidding process lasted less than 30 seconds. The process was opened and a lawyer representing the buyer offered a bid of $35 million. Bidding was immediately closed and the $35 million dollar bid accepted. I took some photos of the auction as it took place. There did not appear to be any other bidders present but had there been, they would have had the briefest moment to counter the first offer. It seemed very orchestrated to me. It's West Virginia, what do we expect?

The media present wanted to know who the private buyer was, but that had already leaked. US Bank was the buyer and this is the good news part, I think.

US Bank holds the debt load on CTC. It is reported in the papers as being $93 million but sources close to the process report that it is $98 million. Many had assumed that when the mall was auctioned it would be for the debt load, which is common. If that does not take place, the lien holder (US Bank in this case) could challenge the auction for a period of 18 months (West Virginia law) and place their own superior bid to challenge. But, because US Bank is the lien holder and the bidder, a different situation has arisen.

US Bank has on the one hand a lien for $93 million/$98 million and has just bid and won at auction in the amount of $35 million. I am sure an institution that size of US Bank has multiple departmental organs, each with their own P&L procedures but essentially, US Bank is now on the hook for $128 million/$133 million for sole ownership of CTC. Cafaro+Forest City+QIC are not completely out of the picture after 36 years of rape.

The good news Is somewhat hidden in this telling. Because most expected that CTC would be sold for the debt load of $93 million/$98 million, CTC would be essentially purchased for free. The Mall has a tangible value of circa $150 million dollars. That would be a huge loss to the everyone that had an original stake in the building of CTC. While $35 million is far short of the $150 million estimated value, it is far higher than zero and shows a commitment to the property by US Bank.

I did some further research into US Bank and this is not the first such mall they have found themselves on the hook with. Lakeforest Mall in Gaithersburg MD is the nearest I could locate. US Bank took over the property when the owners of that mall defaulted on a $100 million dollar after paying off all but $19.1 million. US Bank held the mall for roughly a year while the receivership was processed and then bought the mall for the amount of debt load. That is different than what took place at CTC, where US Bank absorbed the debt load and paid an additional $35 million. But, after they purchased the mall through an auction for $19.1 million they immediately sought a buyer for the property.

They purchased the mall on August 22, 2017 and they seemed to have obtained an interested buyer almost immediately but as of February 2018, nothing had been finalized. Nothing new on that transaction could be found through various internet sources and US Bank is still listed as the owner. The city of Gaithersburg has created an enterprise zone around the mall to help in the resurrection of the property.

It may be that the developer that they had in the beginning had indigestion. It had just undertaken a $45 million dollar of another property prior to the availability of Lakeforest Mall.

Because CBRE was tabbed as manager for CTC when US Bank took over as owner when Forest City defaulted, I do not expect a change management. I do expect Boyd Resources to exit the picture as the mall is no longer in receivership. I do not know if the parking garages were included in the sale, but I do know that CURA did not surrender the land beneath them so they will still need be to paid, regardless of who owns the structures. I assume US Bank now owns the garages. They do not own the anchors. Each are owned by their tenants with the except of the Sears anchor which is owned by KM Hotels of Richmond VA.

The good details are:
CTC is no longer in receivership or bankruptcy.
The estimated value of the mall exceeds the current price paid by US Bank.
At least one middle man has been removed - Boyd Resources.
CURA should begin to be paid again.
Contracts and Leases can be signed.

The Unknowns:
US Bank does not seem to have a strong track record in re-selling properties like this and in the case of Lakeforest Mall has done no updating to it since they purchased the property. That is 17 months and counting as of this date.
There is nothing to stop someone like Forest City or QIC or Cafaro from becoming the "new" buyer.
Macy's is leaving regardless and now that they are doing so, will Belk's, move into their location. Remember Macy's did not want Belk's in the mall and Macy's still owns that anchor.


The Bad details:
It seems that the entire management staff will be retained for now. There is a lot to be said for continuity in these sorts of businesses, but in this case. I think new blood is called for and every current employee at CTC should be eliminated and new faces put in there. These are after all, 30+ year employees that were married to Forest City and their shady dealings.

CTC has lost roughly half of it's smaller stores and 3 of its 4 anchors.

Mayor Goodwin is a big fat zero. That press blurb was a typical cut and paste job every politician sates when something like this happens. It means nothing because they will do nothing. Besides it was the previous mayor that allowed all of this to happen. So why would anyone think the mayor will or can help?

The Best details:
CTC has location. Unlike Lakeforest Mall in Gaithersburg MD, CTC is located in a CBD, next to a regional coliseum and convention center, flanked by good hotels and a district federal court house among other notables.
It is now worth more than it's debt.
Both the Marriott and Embassy have either started or will soon start an unknown level of renovations. I think Embassy's updating is going to be more extensive than Marriott's.

Obviously there is still more to learn about this process and while more will come out, I think all-in-all, CTC has had a bit of good luck, especially if it can be sold to a developer that has a vision and sees the mall as an investment.
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Old 01-25-2019, 06:52 AM
 
1,889 posts, read 2,130,353 times
Reputation: 655
We can only hope that this helps the property turn the corner.

Considering the mess Mayor Goodwin has inherited, along with being on the job for what a month now, you may want to give her some time to see what she can do. Remember, she has 16 years of regression to reverse, it's going to take time.
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Old 01-25-2019, 07:11 AM
 
79,903 posts, read 43,915,797 times
Reputation: 17184
It does appear that there was no auction. Everything was agreed upon well before. With that being the case, you do think "WV as usual" but I hope you are right CG, and this works out.
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Old 01-25-2019, 08:50 AM
 
Location: Arlington, VA
2,016 posts, read 4,584,838 times
Reputation: 1668
Quote:
Originally Posted by Caden Grace View Post
Spent much of the day tapping resources for details on the transaction and what it may mean for CTC. I was a bit anxious when it was announced that a "private party" purchased the mall, but I have since become optimistic about the entire ordeal.


Prior to today's sale, Cafaro owned 50% of the mall, Forest City owned 26% and QIC owned 24%. When it went into default, all of those parties were a party to the default. This sent the property into receivership under the managerial control of CBRE. CBRE then tabbed Boyd Resources to act as receiver. CBRE stopped payment to CURA for the monies generated by the parking garages. A ruling was made that CBRE would garner $800,000 and Boyd Resources $300,000 of the escrow produced by those revenues. I had expected this to go to CURA.

This brings us to today's sale. The bidding process lasted less than 30 seconds. The process was opened and a lawyer representing the buyer offered a bid of $35 million. Bidding was immediately closed and the $35 million dollar bid accepted. I took some photos of the auction as it took place. There did not appear to be any other bidders present but had there been, they would have had the briefest moment to counter the first offer. It seemed very orchestrated to me. It's West Virginia, what do we expect?

The media present wanted to know who the private buyer was, but that had already leaked. US Bank was the buyer and this is the good news part, I think.

US Bank holds the debt load on CTC. It is reported in the papers as being $93 million but sources close to the process report that it is $98 million. Many had assumed that when the mall was auctioned it would be for the debt load, which is common. If that does not take place, the lien holder (US Bank in this case) could challenge the auction for a period of 18 months (West Virginia law) and place their own superior bid to challenge. But, because US Bank is the lien holder and the bidder, a different situation has arisen.

US Bank has on the one hand a lien for $93 million/$98 million and has just bid and won at auction in the amount of $35 million. I am sure an institution that size of US Bank has multiple departmental organs, each with their own P&L procedures but essentially, US Bank is now on the hook for $128 million/$133 million for sole ownership of CTC. Cafaro+Forest City+QIC are not completely out of the picture after 36 years of rape.

The good news Is somewhat hidden in this telling. Because most expected that CTC would be sold for the debt load of $93 million/$98 million, CTC would be essentially purchased for free. The Mall has a tangible value of circa $150 million dollars. That would be a huge loss to the everyone that had an original stake in the building of CTC. While $35 million is far short of the $150 million estimated value, it is far higher than zero and shows a commitment to the property by US Bank.

I did some further research into US Bank and this is not the first such mall they have found themselves on the hook with. Lakeforest Mall in Gaithersburg MD is the nearest I could locate. US Bank took over the property when the owners of that mall defaulted on a $100 million dollar after paying off all but $19.1 million. US Bank held the mall for roughly a year while the receivership was processed and then bought the mall for the amount of debt load. That is different than what took place at CTC, where US Bank absorbed the debt load and paid an additional $35 million. But, after they purchased the mall through an auction for $19.1 million they immediately sought a buyer for the property.

They purchased the mall on August 22, 2017 and they seemed to have obtained an interested buyer almost immediately but as of February 2018, nothing had been finalized. Nothing new on that transaction could be found through various internet sources and US Bank is still listed as the owner. The city of Gaithersburg has created an enterprise zone around the mall to help in the resurrection of the property.

It may be that the developer that they had in the beginning had indigestion. It had just undertaken a $45 million dollar of another property prior to the availability of Lakeforest Mall.

Because CBRE was tabbed as manager for CTC when US Bank took over as owner when Forest City defaulted, I do not expect a change management. I do expect Boyd Resources to exit the picture as the mall is no longer in receivership. I do not know if the parking garages were included in the sale, but I do know that CURA did not surrender the land beneath them so they will still need be to paid, regardless of who owns the structures. I assume US Bank now owns the garages. They do not own the anchors. Each are owned by their tenants with the except of the Sears anchor which is owned by KM Hotels of Richmond VA.

The good details are:
CTC is no longer in receivership or bankruptcy.
The estimated value of the mall exceeds the current price paid by US Bank.
At least one middle man has been removed - Boyd Resources.
CURA should begin to be paid again.
Contracts and Leases can be signed.

The Unknowns:
US Bank does not seem to have a strong track record in re-selling properties like this and in the case of Lakeforest Mall has done no updating to it since they purchased the property. That is 17 months and counting as of this date.
There is nothing to stop someone like Forest City or QIC or Cafaro from becoming the "new" buyer.
Macy's is leaving regardless and now that they are doing so, will Belk's, move into their location. Remember Macy's did not want Belk's in the mall and Macy's still owns that anchor.


The Bad details:
It seems that the entire management staff will be retained for now. There is a lot to be said for continuity in these sorts of businesses, but in this case. I think new blood is called for and every current employee at CTC should be eliminated and new faces put in there. These are after all, 30+ year employees that were married to Forest City and their shady dealings.

CTC has lost roughly half of it's smaller stores and 3 of its 4 anchors.

Mayor Goodwin is a big fat zero. That press blurb was a typical cut and paste job every politician sates when something like this happens. It means nothing because they will do nothing. Besides it was the previous mayor that allowed all of this to happen. So why would anyone think the mayor will or can help?

The Best details:
CTC has location. Unlike Lakeforest Mall in Gaithersburg MD, CTC is located in a CBD, next to a regional coliseum and convention center, flanked by good hotels and a district federal court house among other notables.
It is now worth more than it's debt.
Both the Marriott and Embassy have either started or will soon start an unknown level of renovations. I think Embassy's updating is going to be more extensive than Marriott's.

Obviously there is still more to learn about this process and while more will come out, I think all-in-all, CTC has had a bit of good luck, especially if it can be sold to a developer that has a vision and sees the mall as an investment.
Lakeforest Mall in Gaithersburg does have some similarities. It was one of the larger malls in suburban Maryland when it opened in the late 70s but ultimately lost market share once the Montgomery Mall in nearby Bethesda underwent a massive expansion and eight million new shopping centers were built in places like Kentlands, Germantown and Clarksburg. Demographics in that part of town have gone downhill and once a huge new outlet center opened just up 270 in Clarksburg, there isn't a lot of hope left for that place. It does still have all the anchor stores like Macy's, Sears, Lord and Taylor, etc but the tenant mix has gone way downhill. A big difference from Charleston is that the area is still growing - I feel it may go the way of White Flint Mall to the south and be torn down and replaced with a large mixed use development.

I hope everything works out with CTC- It is really sad that it has come down to this. People used to come from all over the state to shop there well into the late 90s/ early 00s only for it to be auctioned off on the court house steps. You cannot convince me that this is the result of anything other than pi$$ poor management. With Macy's gone hopefully they can at least try to bring in a Belk or something like a Von Maur. The mall concept in and of itself is not dying- there is still plenty of demand as long as one has management willing to adapt to the changing retail marketplace and incorporate more mixed use concepts. There is no reason this cannot be done given their location.
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Old 01-25-2019, 02:11 PM
 
Location: NW Penna.
1,758 posts, read 3,818,648 times
Reputation: 1880
Quote:
Originally Posted by Caden Grace View Post
...
The Unknowns:
US Bank does not seem to have a strong track record in re-selling properties like this and in the case of Lakeforest Mall has done no updating to it since they purchased the property. That is 17 months and counting as of this date.
There is nothing to stop someone like Forest City or QIC or Cafaro from becoming the "new" buyer.
Macy's is leaving regardless and now that they are doing so, will Belk's, move into their location. Remember Macy's did not want Belk's in the mall and Macy's still owns that anchor.
...
Didn't Danny Jones say that Forest City (or Forest City et al.) bought the Macy's anchor for $2.5MM, plus agreed to pay Macy's an additional $2.0MM to stay, of which only $1MM was paid? I know I saw or heard that somewhere. I have it written down in my notes. ;D


U.S. Bank Association has been penalized for money laundering.
https://www.fincen.gov/news/news-rel...ney-laundering
https://www.fincen.gov/sites/default...inal%20(3).pdf


re. the Danny Jones commend about Cafaros being "rough," they are old school Youngstown. It would be too off-topic to go into it.
It isn’t bribery; it’s love | vindy.com
Oakhill Renaissance Place, which the Cafaros blocked so it would not hurt their properties.
Cafaro sister implicated in some money laundering somehow tied to Oakhill Renaissance Place (iirc) died of natural causes in a house fire Coroner: Flora Cafaro’s death was accidental | vindy.com


Cafaro proposed building a couple new hospitals and related facilities next to their Eastwood Mall. But Mercy / St. Joseph cooled off because GM Lordstown might be shut down permanently.
http://www.tribtoday.com/news/local-...terprise-park/
https://www.vindy.com/news/2018/dec/...ans-hold-wake/

Medical offices, diagnostic testing, medical imaging, PT/OT center, all housed inside a former mall is an interesting reuse idea, though. It would kind of break Charleston's tradition of industry / lose the industry / demolition / build yet more retail / have yet more failed retail / demolition / yet more WV State Gov't offices.
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