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Local Big Box Retail Properties Face Foreclosure

Business

Walmart store shelves | Image by Shutterstock

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Seven big box retail stores in North Texas are under threat of foreclosure after the property owner reportedly defaulted on more than $40 million in loans.

The term “big box” describes retail stores that occupy large volumes of physical space and offer a variety of consumer goods and products, according to Investopedia. Big box stores achieve economies of scale with a business model that focuses on achieving large sales volume.

The seven North Texas retail buildings are located in Grayson County, Cedar Hill, Desoto, Lancaster, McKinney, Rockwall, and Sachse. Carrollton-based investor Riba Walmart Investment LLC  owns the properties and leases them to Walmart Neighborhood Markets.

Walmart Neighborhood Markets are smaller than a regular Walmart Supercenter but bigger than your average supermarket.

Riba Walmart Investment LLC reportedly defaulted on multiple loans totaling $41.5 million, according to Roddy’s Foreclosure Listing Service, a McKinney-based company that tracks property foreclosure filings.

“These pre-foreclosure postings are highly unusual,” Aaron Amuchastegui, CEO of Foreclosure Listing Service, said in a statement. “While commercial foreclosures are not uncommon in North Texas, we rarely see defaults on deeds of this scale, especially when associated with major corporations like Walmart.”

The retail buildings are scheduled to be sold at foreclosure auctions early next month. In many instances, negotiations between the borrower and lender can occur even as the properties are posted for forced sale.

“The fact that these stores remain open leads me to believe that the Walmart corporation is planning to come current on the deed or transfer it to a different investment entity prior to auction,” said Amuchastegui.

Based on Texas’ foreclosure listings, 79 commercial properties are currently posted for foreclosure, with Walmart stores as the top commercial properties under threat.

The tax appraisal for the seven buildings ranges from $1,264,541 to $5,738,835, according to Amuchastegui. Dallas-based Reserve Capital Partners currently holds the debt on the big box properties.

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Mary
Mary
1 month ago

Maybe the taxes were to much for the people owning the buildings.

Rod
Rod
1 month ago

After the 2024 elections, yes.