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Wednesday, 22 August 2018

Offers for 32 Toys R Us Stores Accepted at Bankruptcy Auction

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Commercial Real Estate Direct Staff Report

Offers totaling $116.9 million were accepted for 32 Toys R Us stores in the collateral pool for the $489.3 million mortgage securitized through TRU Commercial Mortgage Securities Trust, 2016-TOYS, moving the resolution of the now-defunct retailer one step further.

Kroll Bond Rating Agency highlighted the high bids in a special report distributed this afternoon. It previously had pegged a value of $103.6 million on the 32 properties.

The offers were submitted last week at an auction conducted by the bankruptcy court overseeing Toys R Us' filing. All 123 properties that back the CMBS loan were offered, with Wells Fargo, the CMBS deal's special servicer, putting up a $480 million credit bid.

Offers were turned in for all but eight of the 123 properties. But Wells Fargo agreed to accept only those for 32, evidently deeming the others too low. The bidding took place over 15 hours on Aug. 13 and 14. Prospective investors competed through three rounds of bidding.

Earlier this year, Kroll had estimated the entire collateral portfolio would be worth $439.1 million. It determined that value through a discounted cash-flow model that took into account the amount of time it would take to lease up each property and the costs involved in possible tenant improvements and leasing commissions.

OBO Ventures Inc., which operates Ollie's Bargain Outlet stores, won the bidding for 12 stores with an offer of $42 million. And Scandinavian Designs Inc., a 50-year-old home furnishings retailer that operates 30 showrooms, won the bidding for 15 stores with a bid of $36 million. Other accepted bids were submitted by regional grocer Giant Eagle Inc., the South Broward (Fla.) Hospital District and Lionstone Investments, among others.

Toys R Us had filed for bankruptcy in September 2017 and six months later decided to liquidate.

Comments? E-mail Orest Mandzy, or call him at (267) 327-4281.



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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Retail
  • Subject: CMBS - non-deal specific (CMBS-G), Commercial MBS (CMBS), Property Acquisitions (ACQ)
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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