The epicenter, the jewel of Charlotte’s uptown nightlife crown, appears to be heading towards the possibility of foreclosure with the trustee.
A multipurpose retail center real estate owner has delinquently paid a $ 85 million loan as of June 6, according to a proceeding filed by creditor Deustsche Bank Trust Co. in Mecklenburg County Court on June 25. I am.
According to the proceedings, the bank is also seeking to collect rent and appoint a beneficiary to manage the property, and special procedures to seize the property with the county court clerk. Is proceeding.
Los Angeles-based CIM Group Investment company buys property In 2014 it was $ 103.5 million. In the proceedings, Epicenter SPE was appointed as the defendant instead of the CIM Group.
The approximately 304,000-square-foot multi-level retail center covers the 210 E. Trade St block.
According to the commercial real estate database reonomy, Epicenter’s leased capacity had dropped to 35% by June.This site collects records from public and private sources, according to its site. website..
Most of the restaurants and other entertainment businesses that were ordered to close at the beginning of the coronavirus pandemic were never reopened at epicenters such as the Whiskey River, Vida Cantina, and Tin Roof.
Heather Calpe, a bankruptcy lawyer with Charlotte’s Essex Richards, said he was not involved in the proceedings at the epicenter, but the seizure of such cases could be completed in 60 to 75 days. Deustsche Bank can then search for real estate buyers in North Carolina without a court order.
“This doesn’t mean the secret of death at the epicenter, but we’re running out of time,” Calpe said.
CIM group did not respond to multiple requests for comments.. Charlotte’s Kilpatrick and Townsend & Stockton’s James Pulliam represented Deutsche Bank in the case and did not respond to requests for comment.
Significant drop in profits
The epicenter is 264,000 square feet of Retail space and approximately 41,000 square feet of office space on more than 3 acres of land, Leonomy Data show.
According to Leonomy, the epicenter occupancy was 78% at the end of 2019, compared to 36% at the end of last year. Net operating profit fell from more than $ 11 million at the end of 2019 to less than $ 6 million last year, Leonomy data shows.
Another Charlotte retail center is also heading for the possibility of foreclosure.
Northlake Mall owners failed to pay their debt, according to a Mecklenburg County Court consent order by Wilmington Trust seeking to appoint a beneficiary by defaulting on a mortgage in November 2019. TM Northlake Mall is affiliated with Starwood Capital Group, which purchased Northlake Mall in 2014.
During the pandemic, the majority of restaurants at the epicenter never reopened.
This includes Blackfinn, Firehouse Subs, Grabbagreen Food + Juice, Jason’s Deli, Moe’s Southwest Grill, Papa Rossi’s New York Style Pizza, Smoothie King, Urban Brick’s Pizza, Vida Cantina and WildWing Cafe.
Entertainment venues and nightclubs such as Rooftop 210, Suite, The Tin Roof and Vault are also completely closed.
Studio movie grill is closed The epicenter of the second level was March 2, seven years later, and there was a move that it had nothing to do with the pandemic.
The epicenter was almost seized before
The CIM Group is the third owner of Epicenter.
The epicenter was built in 2008.
According to observers at the time, Epicenter went bankrupt in July 2010 under the original developer to avoid foreclosures after the center’s construction loan defaulted. ..The· The epicenter emerged from bankruptcy Two years later, under the new owner Blue Air 2010, we invested in millions of refurbishments.
Stay open at the epicenter
on Epicenter online The five-story map has 52 business spaces, but the map shows that less than 20 are open. The operating sites include Insomnia Cookie, Epic Times Jewelery, Fuji Hibachi and Teriyaki Grill, Flemings Steakhouse, Mortimer’s Cafe, Red Eye Diner, Bowlero, Tailored Smoke, Rocket Fizz, and World of Beer.
Service businesses such as CVS, Novant Health and State Farm, Skyview Dentistry, Seaport Global, etc. Financial office Keep it open.
World of Beer CEO Paul Avery told observers in an interview last month that he has no plans to leave Epicenter despite the “very difficult to make money” location.
According to Avery, Epicenter was able to keep the door open during the COVID-19 time limit in collaboration with Florida-based restaurants and taphouse chains. Charlotte’s location opened in 2018. He believes entertainment and sports will return to uptown, and so will business.
“Sales are growing steadily,” he said last month. “We think the hardest days are behind us. The risk at this point is what ownership is trying to do at the epicenter.
“Epicenter is built for long-term use and I think it will work fine in the long run,” Avery said. “Our plan is to stay at the epicenter.”