Mr Williamsburg, Revolutionary ideas on real estate!Hampton Roads Virginia

Will Settlers Market in New Town become the next Marquis debacle ?

According to a notice in a local newspaper there is a foreclosure sale scheduled for the land and property currently owned by AIG Baker Williamsburg LLC. The sale will not affect the operation of Trader Joes , Bakers Trust or BB& T Bank . Nor will it have an effect on the leases already signed by Michaels Arts and Crafts which haven’t yet started construction. It had been rumored that Home Goods and Steinmart had signed leases in Settlers Market. No mention of those stores either.

Plans for the Wal Mart Neighborhood Market, an upscale boutique market seem to be up in the air. A chief plan examiner for the James City County Codes Compliance office, said Friday that while Wal-Mart had applied for a building permit the company had not followed through to actually obtain it.

Wal-Mart originally applied for the building permit for the proposed 40,000-square-foot store in February 2008. If built as planned it would be more than three times the size of Trader Joe’s.  It seems that Wal Mart was released from the deed of trust.

Settler’s Market was designed as a  mixed use center with a proposed 350,000 square feet of retail and office along with 210 residential ( Condos) flats and townhouses. So far the only businesses to open have been Trader Joes, BB&T Bank and Bakers Crust restaurant.

The center is located at the northeast intersection of Highway 199 and Monticello Avenue within the New Town Master Plan Development corridor, there are connecting roads and walking trails into New Town.

The property in questions as a combined assessed value of approximately $16 million dollars and is about 42 acres in total area.

The lender on a nearly $55.5 million note has declared the loan in default. The appointed trustee for the lender indicated the loan balance is far below the $55.5 million on the original note.

Five properties currently leased at Settler’s Market are specifically mentioned in a trustee’s sale legal notice as being obligations any successful buyer must honor. They include three already open businesses: Baker’s Crust, a popular southside chain that opened in May; Trader Joe’s and BB&T Bank. Also with signed and protected leases are Cingular Wireless and Michael’s Arts and Crafts, which have not opened.

The property  includes several shell buildings that appear on the verge of occupancy, there is little else at the development. A paved road, complete with decorative street lights and curbs, bends through acres of cleared property. An on-site sales office sits idle for the proposed condo units . This office was closed months ago.

It’s interesting to note that the developer  AIG Baker in their sales brochure was touting a projected  increase in population in James City County of  94% by 2025.

The developer behind Birmingham-based AIG Baker has indicated that the  company’s fortunes are not tied to teetering insurance giant American International Group Inc.

AIG Baker is not a subsidiary of New York-based AIG, though the insurer’s global real estate division is a longtime investor in AIG Baker.

The Federal Reserve has orchestrated what amounts to an $85 billion takeover of AIG to prevent the world’s largest insurer from a bankruptcy filing that could have disrupted global financial markets.

AIG formed a joint venture with then-AB Shopping Center Properties Inc. in 1993. AIG has provided some financing on the front end of projects according to company representatives. The company has projects under way in Alabama New Jersey, Virginia and Texas.

Unless a workout is accomplished with the current lender the sale is scheduled to occur on Monday October 5, 2009 at the Williamsburg and James City County Circuit Court Building.

Stay tuned for further updates

, Map of Settlers Market, Williamsburg VA

 View Settlers Market in a larger map

This post was authored by local resident and REALTOR, John Womeldorf.  John is known around town as Mr. Williamsburg, for both his extensive knowledge of Hampton Roads and the historic triangle, and his expertise in the local real estate market.  His websites, www.WilliamsburgsRealEstate.com  and   www.MrWilliamsburg.com, were created as a comprehensive resource about living in Williamsburg and Hampton Roads, with the hopes of selling a house now and again.  You can reach him at 757.254.8136 or John@MrWilliamsburg.com.

Filed under: Business, Foreclosures, James City County Williamsburg VA Neighborhoods, New Town, News, williamsburg va |