NAS Delivers Buyer for Large TIC Group Invested in Greenville Shopping Center
Greenville, SC– National Asset Services (NAS), one of the Country’s leading commercial real estate companies, known for maximizing property value in all economic situations, successfully delivered a buyer for the 34 Tenants-in-Common (TIC) Co-Owners of Verdae Village Shopping Center, a grocery anchored community shopping center. The sale of the property comes ahead of a November loan maturity.
Despite a very narrow range of prospective buyers, due to challenges presented with the property’s ground lease, the NAS team resourced and identified a buyer whose acquisition strategy fit with the Verdae Village property’s potential.
NAS assumed asset management of the property in 2018 and immediately began to strategically fill property vacancies to strengthen the property’s NOI. And despite two major tenants filing chapter 11 during the Covid-19 Pandemic, tenant occupancy was over 95% at the time the property was marketed for sale.
While TIC structured properties are still part of the commercial real estate landscape, large properties with many TIC ownership positions are uncommon in today’s marketplace. One reason for the aversion to utilizing the TIC structure is that it requires unanimous approval of every TIC co-owner to sell the asset. Further, at the closing of the sale transaction then requires each member to execute all requisite documents pursuant to the transaction requirements with strict adherence to deadlines. Imagine having all TICs available on the days leading up to the closing signing documents, managing delivery to title and escrow for the closing etc.
“With an impending loan maturity date, we felt an immense responsibility to unify our TIC clients and deliver the best possible outcome possible for the investors in this asset,” commented Karen E. Kennedy, President and Founder of NAS and NAS Investment Solutions. “Moving a very large TIC group, through a sale process was daunting, but our team was successful in getting the job done! We found the co-owners, in their final moments of ownership, to be extremely supportive. I am so very proud of my team at NAS led by Adi Peery, CSM, Vice President Portfolio Management.”
The TIC Co-Owners were represented in the sales transaction by the Colliers International’s Atlanta-based Southeast Retail Investment Sales Team of Joe Montgomery, Senior Vice President and Scott Israel, Vice President.
Built in 1989 and located in Greenville, SC, Verdae Village benefits from its location near Interstate 85 which is just one-half mile south of the 241,548 square -foot center. Situated on just over 24 acres, the center is anchored by Food Lion, K&G Fashion Super Store, Office Depot, and Planet Fitness.