Taubman Centers Inc. turned over the keys on Regency Square in Richmond, VA, to the mortgage lender via a deed in lieu of foreclosure on the property. Title to the property has been transferred to the mortgage lender on behalf of LNR Partners LLC as special servicer. As a result, Taubman has been relieved of $72.2 million of debt obligations plus accrued interest associated with the property. LNR Partners LLC has hired Jones Lang LaSalle to lease and manage the mall and Taubman will work with them for a one month transition period.
Regency Square is an 818,000-square-foot shopping center, built in 1975 and anchored by Macy's (two locations), JCPenney and Sears. Taubman acquired the property in 1997.
In the third quarter of 2009 in the face of a weakened economy, declining net operating income and increasing capital expenditure requirements at the center, Taubman announced it would recognize an impairment charge of $59 million on its investment and concluded that it was in the best interest of the company to discontinue its financial support of Regency Square.
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