SOURCE: Sovereign Capital Management Group

January 13, 2011 14:34 ET

Sovereign Capital Management Group Recapitalizes Struggling Vista Shopping Center

SAN DIEGO, CA--(Marketwire - January 13, 2011) -  Sovereign Capital Management Group, Inc., a San Diego based real estate investment company, recently partnered with Grewal Realty Holdings, LLC last January on a struggling 136,792 square-foot retail shopping center on the verge of foreclosure. Grewal originally purchased the retail shopping center in 2005 for $28,000,000. 

In 2008, Grewal found itself with falling rents, spiking vacancies and sluggish retail sales. In 2009, the loan entered default status with the master servicer (Keybank) and was later transferred to the special servicer (Centerline or CIII). Receivership and subsequent foreclosure were Grewal's only remaining options.

Sovereign stepped up at this juncture as a partner, asset manager and investor advocate, tapping into its entire team of real estate professionals including in-house legal, loan workout specialists and property analysts.

During 2010, the private equity company:

  • Spearheaded more than $800,000 in capital improvements to the center;
  • Reduced rental rates for several tenants to better reflect market values, thus allowing for stabilization of the asset;
  • Boasted occupancy to 85% by September 2010, with a mix of both national and regional tenants;
  • Educated the special servicer on market conditions, market rental rates, deferred maintenance and fair market value of the property itself;
  • Attained new property appraisals taking into account current market value, thus resetting the property value.

On December 10, 2010, Sovereign submitted to the special servicer a discounted payoff offer (DPO) of $12,250,000 that reflected a fair market sale. The deal closed on December 30, 2010.

Headquartered in San Diego, Sovereign Capital Management Group, Inc. and its closely held affiliates have grown to include nationwide asset management, property management, advisory services, private equity syndications and various property holdings across the United States. Operating with the mission of providing value and long-term stability through real estate investment, Sovereign has been directly involved in the successful development and management of multi-family units, attached single family condominiums, medical office buildings, general office, flex-industrial properties, retail properties and specialized use buildings. For more information, visit www.sovcapital.com or contact William White at (800) 861-5006.

Contact Information

  • CONTACT:
    William White
    (800) 861-5006