A $16 million buy-back of a piece of property on Lowell Street at a recent public auction was transacted because the property was in need of more capital to pay for improvements.
The sale, recorded by the Southern Essex District Registry of Deeds office is for property at 535 Lowell Street. It was transacted because the property needed additional capital, according to Nate Cann of Dry Creek Capital Partners, LP — one of the managers for DCC Adams Fork, LLC, an Englewood, Colo.-based company recorded to have bought back the space.
“To succeed, the property needed additional capital to pay for tenant improvements and further development of the property,” Cann said. “The prior ownership had a complex capital stack and that made it hard to attract either a refinance or additional equity. This was made especially difficult by the huge increase in interest rates and the maturity of the CVS lease.”
The property is a 59,067 square-foot Neighborhood Retail Center sitting on 4.87 acres. Some businesses on the property include In The Game Peabody (formerly Bonkers), a parking lot, a hair salon, at least six restaurants in and around the lot, and a CVS. The sale encompasses all the businesses in the entire property.
According to a media report, the plaza was previously owned by Alfred R. Yebba, who, according to his LinkedIn profile, is the current president of Yebba Realty Ventures, which has links to a past project done with 535 Lowell Street. The 2017 article also stated that the Yebbas believe improvements to the plaza will be one more step in the ongoing efforts to revitalize the city.
“DCC Adams Fork hopes that Mr. Yebba will agree to provide transition services for the next three months to ensure the smooth transition of ownership and services to minimize the impact on the tenants and their customers,” Cann said. “In addition, Mr. Yebba’s institutional knowledge would be helpful in developing the property and there might be a role there for him going forward.”
According to Cann, the property has only recently been under their ownership, and therefore it is too early to determine solid plans in improving the property and getting new tenants.
The deed may be viewed at www.salemdeeds.com as Registered Land with document number 649907.
