About The Marquis
At the axis of US Interstate 64 and Marquis Center drive, The Marquis at Williamsburg opened in 2008 as a regional shopping destination featuring 500,000 square feet (s.f.) of national brand retail space such as Target, J.C. Penny, Kohl's Department Store, Dicks Sporting Goods and Best Buy.
The entire development included over 200 acres and was planned and zoned for over 2 MM s.f. of mixed use. The Marquis was originally financed with $90+ MM of first lien and mezzanine debt along with $32 MM of CDA bond indebtedness.
The financial crisis of 2008 and subsequent economic recession facilitated a perfect storm of default indebtedness leading to the bankruptcy of the former developer/owner resulting in the foreclosure of The Marquis by the primary lender. At the time of acquisition of The Marquis by Todd Interests, the $32 MM of CDA bonds were in default with several million dollars of past due assessments, interest, and ad valorem taxes owed. As a result of the previous developer/owner’s bankruptcy, over $12 MM of material and mechanic’s liens were filed against the development. To make matters even worse, none of the tenants were paying rent, and a substantive lawsuit was filed by one of the tenants seeking over $10 MM in restitution.
Aware of these challenges, Todd Interests acquired the Corporate Entity that owned the real estate along with the associated liabilities embedded in The Marquis, and immediately began solving each and every problem. This endeavor required restoring immediate financial stability and credibility to the development. In less than one year, all of the tenant issues were addressed, which resulted in the execution of new or amended leases for no less than 10 years in term. All of the material mechanic’s liens were settled. The CDA bonds were restructured resulting in all past-due interests, assessments and ad-valorem taxes being settled. Lastly, all lawsuits pertaining to The Marquis were dismissed. During the 12-month time frame, the entire 200+ acre development received a final plat affording all of the existing tenants being on separately platted parcels.
The Marquis is now a thriving shopping destination with a recent sale to Sam's Club and the addition of new zoning allowing up to 650 residential units, new to the market place. Many investment sales have occurred within The Marquis at Williamsburg as a result of its success.
“The county is very pleased with the recent sale of the Marquis,” said County Administrator James O. McReynolds. “We look forward to working with Todd Interests as the company pursues this project.” County Economic Development Director Jim Noel said the county is impressed with Todd’s proven background of turning around challenged property developments. “Todd Interests takes troubled projects, rights the ship and makes them profitable,” Noel said. “It’s a perfect match for the Marquis project.”
-WILLAMSBURG YORKTOWN DAILY
