Loan loss on Regency Mall was $65.2 million
When a joint local venture between Thalhimer Realty Partners Inc. and the Rebkee Co. decided earlier this month to team up and buy Regency Mall, that was good news for the aging retail property. The two Richmond-based companies plan to revitalize what was once the region’s premier shopping destination.
Yet Trepp LLC reports that the payment on the property’s outstanding loan incurred a loss of $65.2 million, or 94 percent of the loan balance prior to the resolution. The loss, said the New York-based information and analytics company, was well above the last appraisal reduction on the loan of $56.2 million.
According to Trepp, the 450,000-square-foot enclosed mall sold for $13.1 million, below the Henrico County property’s most recent appraised value of $15 million. The outstanding mortgage was nearly $70 million with Regency part of an original CMBS deal that included other properties.
According to Trepp, the deal now has a $5.3 million loan remaining.The deal was originated in 2002 by Bank of America.
Thalhimer and Rebkee purchased the property from LNK Partners LC, based in Miami, a special servicer that took over the loan when it went into default in 2011.