The commercial lender holding a $4.65 million past-due commercial real estate loan on a small part of Gerald A. Buchheit Jr.’s Quaker Crossing retail development wants somebody else to take over what it now sees as a risky credit.
The lender, CW Capital, is putting the loan on a Red Robin restaurant and a largely empty small retail center up for sale for $1.75 million.
Auction.com and Rockwood Real Estate Advisors are jointly auctioning the “nonperforming” loan, which is secured by a 33,781-square-foot retail facility housing the hamburger restaurant chain, Cold Stone Creamery, Supercuts and Jenny Craig, according to Auction.com’s website. Both CW Capital and Rockwood Real Estate are subsidiaries of CW Financial Services.
The 4.29-acre property includes three one-story, multitenant buildings and 210 surface parking spaces at 3460-3464 Amelia Drive. It’s technically owned by QC Outparcel LLC, which is owned by Buchheit.
The three-building project was originally built in 2007, primarily for a Borders bookstore. But that retailer is now bankrupt and out of business, leaving a huge hole in the facility’s income stream. The steel, masonry and concrete facility was only 33.7 percent occupied as of Oct. 1, with Red Robin occupying 6,372 square feet through May 2022.
Gregory P. Photiadis, Buchheit’s attorney and the senior partner at Duke, Holzman, Photiadis & Gresens LLP in Buffalo, said his client has “been in touch with the lender” and is “trying to explore legitimate proposals” about the loan. He said Buchheit is “trying to remarket this parcel to replace Borders.”
“They were considering how to redo things in light of Borders’ bankruptcy,” he said. “We’ve been in touch with these folks [since] shortly after the Borders bankruptcy to advise them that there could be an issue until a replacement tenant is found.”
Located on the north side of Milestrip Road, the property is adjacent to Orchard Park’s Quaker Crossing East but is separate from the rest of the development, which is unaffected. That much larger retail plaza is anchored by Kohl’s, Target, Marshall’s, Ashley Furniture, Dick’s Sporting Goods and PetSmart. “There’s no question of the viability of the borrower or the center as a whole,” Photiadis said. “The issue has been to replace Borders.”
The first-lien mortgage, originated in December 2007 for $4.93 million, has a fixed rate of 6.1 percent and matures Dec. 1, 2017. The online auction will occur Dec. 4-6, with a minimum deposit of $25,000.