High Point's Showplace in receivership
Owners default on $81 million note
Larry Thomas -- Furniture Today, August 25, 2009
HIGH POINT — Showplace and four other downtown showroom properties have been placed into receivership by a Guilford County judge after its owners defaulted on an $81 million note.According to documents filed in Guilford County Superior Court, the Charlotte, N.C.-based firm of Lincoln Harris LLC has been named to manage the properties while they are in receivership.
The court filing doesn't say how much of the note is in arrears, but says the note holder, Bank of America, can take possession of the property and "receive all rents and other income" if the owners default.
Typically, a property is placed into receivership while foreclosure proceedings are underway until it can be sold, but it wasn't immediately clear if the Showplace properties are on the market.
The receivership involves Showplace and Showplace West (the former First Factors building at 101 S. Main St.), as well as smaller showroom buildings at 200 N. Hamilton, 320 N. Hamilton and 330 N. Hamilton. All told, the properties have about 950,000 square feet of showroom space, including about 470,000 square feet in Showplace.
It's the third largest group of showroom properties in High Point, after the International Home Furnishings Center and Merchandise Mart Properties Inc. holdings.
The properties were sold in the fall of 2005 to a pair of local investors, Maurice Hull and Coy Williard, and a private equity group.
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I have a great idea. Maybe Furniture Brands can open an outlet at Showplace.
CEP - 2009-26-8 08:50:51 EDT -
Holy cow - what's going on - The Vegas people are going to love this. Last man standing wins, or loses?
CEP - 2009-26-8 08:48:24 EDT -
What is going on in High Point is "tenent grab". The Greensboro N&R reported last week that the Merchandise properties had filed suit against certain individuals at the IHFC for stealing tenants. Some of those stolen were from the properties in this recent receivership filing.
The rents in High Point for permanent space at market has escalated to the point that showrooms are closing or making a decision whether to be in Las Vegas or High Point. They can't afford one, much less two locations.
Exhibitors are closing and going out of business which makes the number of potential tenants shrink all the time. The only way some of these buildings can get new tenants or hold onto what they have is through enticements. There are too many buildings and the concept of permanent space is fast becoming a luxury. The industry is in semi meltdown and the new battlefront is display space.
By the way, I have not yet seen anything in Furniture Today about the IHFC issue which seems to be common knowledge.
charles farley - 2009-25-8 16:32:05 EDT -
Wow-
Showplace is a great building-from the outside-the inside was poorly designed and does not flow well.
Hopefully they can pull it together by market-I think buying the GE building "showplace west" did them in big time.
Matt - 2009-25-8 13:55:35 EDT -
What does that mean, "the plot thickens..."?
A concerned tennant... - 2009-25-8 12:08:17 EDT
Developers bid for Showplace
08/30/2009Investors buy Showplace
09/17/2005Easter leaves Showplace
11/15/2009
