From Retail Traffic via The Real Deal:Societe Generale and Calyon are planning to put the Shops at Atlas Park on the auction block within the next two months. Last week, it looked like the center might secure a buyer in McCaffery Interests Inc., a Chicago-based firm that specializes in underperforming urban real estate. By Friday, however, McCaffery opted not to pursue the acquisition.
"We thought there was an ability to fix it,” says Daniel McCaffery, president of McCaffery Interests. “But negotiations broke down."
McCaffery would not reveal the reason for the breakdown in negotiations, but claimed it was not over price considerations. He said there appeared to be one other bidder for the asset, a fact that Paul Millus, the receiver, confirmed. Millus said the other bidder was currently negotiating with the lenders and waiting for the foreclosure sale to be completed.
In Davidowitz’s view, a prospective buyer of the Shops at Atlas Park could reasonably expect a 40% to 50% discount on the bank’s original investment. The surest way to make the center successful would be to overhaul the mix of tenants at the property, bringing in value-oriented big-box tenants such as WalMart, T.J. Maxx and discount shoe retailer DSW, as well as supermarket chain Aldi, he says.
These are the kinds of chains that fit well with the demographics in Glendale and that would also be a better draw for residents outside the immediate trade area, emphasizes Davidowitz.
