Landlord of hhgregg space in west Boca could face mortgage woes

Michael Ares/The Palm Beach Post

For a landlord, it’s never good news when your one and only tenant announces it’s going out of business. After electronics retailer hhgregg said it was closing all of its stores, Morningstar Credit Ratings said Thursday that the loan on a west Boca property is in danger of default.

The property in question is the hhgregg store at 20841 S. State Road 7. After it closes, the 41,000-square-foot property will go from full to empty.

Landlord Pan York Glades of Miami paid $10.07 million for the property in 2013 and took a $7.07 million mortgage, according to property records.

Morningstar issued a report looking at commercial mortgage-backed securities likely to be hurt by hhgregg’s bankruptcy. The west Boca property is one of 10 loans at higher risk of default.

hhgregg follows a long list of retailers closing stores. Sports Authority, Circuit City and Linens N Things are long gone. Macy’s, JCPenney and Sears are shrinking. And, counterintuitively, it’s a great time to be a landlord in Palm Beach County. The retail vacancy rate is just 4.4 percent.

Reader Comments 0

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Basic HTML is allowed. Your email address will not be published.

Subscribe to this comment feed via RSS