Thursday, 12 November 2009 05:00

Diversified Development Realty Email of Interest

I just received this email and thought my readers may find this of interest. DDR is the company that was featured in the "bailout" post (Here's a Big Company Bailout by the Taxpayer That Even the Taxpayer's Missed!), a must read if you haven't done so already:

I am in the premium xxxxxx business and own a retail store in metro Atlanta. The area that I lease is in a diverse affluent part of town. I believe that this is considered a class A shopping center. DDR is the current owner and this is one of the 28 shopping centers that was put up as collateral for GS in exchange for a 400 million dollar loan that they are going to try to roll up into TALF. To the best of my knowledge DDR acquired this shopping center from Inland a little over 2 years ago.

 

I believe that DDR paid 22 million for it. Last I heard(this needs to be verified) this shopping center is now valued at 17 million. My lease payments now go straight to goldman sachs commercial mortgage capital. Three years ago this shopping center was nearly 100% occupied, now its about 15% remains unleased. The lease signs in the windows now say short term, seasonal leasing available. This was unthinkable over 5 years ago when I set up shop. All the tenants are up in arms over what
we consider fraudulent bills that we are receiving regarding CAM charges. In my opinion DDR is so fiscally screwed that they are resorting to complete slimball tacticts and are possibly truly commiting fraud regarding these new excess bills that we all recieved out of nowhere. In my line of work I am very lucky to talk to rather affluent business people usually higher up the corporate ladder. Many of my customers are in CRE and all of them say the same thing, "CRE is dead, no activity, and it slowly keeps getting worse" DDR's attitude and behavior is repulsive and arrogant towards their tenants. I have never seen such poor management from any landlord.(I have been leasing for over 20 years, 5 years at this location) The base rents at our shopping center are going down, but only when leases expire. They wont even consider lowering anyones rent if your locked into a lease. Some of the base rents were as high as $40 per sq ft(usually from people that couldnt speak english very well I am afraid to say) and as low as $26. It seems now that you can, through much hard ass negiotations,get it about $20-$22 per sq ft. Reggie I thank you for your work and if I can help you in any way please dont hesitate. Thanks.

Last modified on Thursday, 14 July 2011 12:51