FAQs
Who is Victor 2040 and why was it formed?
1
Victor 2040 LLC is a local entity formed to provide a path to local ownership and control of five Eastview Mall parcels if the proposed process moves forward. Its goal is to support Eastview’s long-term success through continued maintenance, investment, leasing and growth. Victor 2040 is separate from the current ownership of the borrower and has committed to establishing local ownership and management acceptable to the Town of Victor.
Why does the Town of Victor need to be involved?
2
The Town is pursuing a process under New York’s Eminent Domain Procedure Law to acquire the five parcels, with the stated intention of transferring them to Victor 2040. The Town’s position is that protecting Eastview’s continued economic activity, employment and sales-tax contribution serves a public benefit.
Is the Town taking the entire mall?
3
No. The proposed acquisition involves five identified parcels. The Town’s materials state that the parcels would subsequently be transferred to Victor 2040.
Is Victor 2040 trying to redevelop Eastview?
4
No. The proposal is intended to maintain and improve the existing Eastview property, including continued investment in maintenance, infrastructure, leasing and future growth.
Is Eastview at risk of closing?
5
No. The proposal is intended to support Eastview’s continued operation and future investment. Eastview remains an operating regional shopping center with businesses, employees and customers.
The proposal is intended to maintain Eastview’s existing operations and employment. Existing businesses would continue operating at the mall, with the goal of supporting long-term investment and stability. Tenants will not be disturbed.
What happens to Eastview’s tenants and employees?
6
Who is Rialto and what does a special servicer do?
7
Rialto Capital Advisors is the special servicer overseeing the Eastview CMBS loan. A special servicer manages distressed or troubled commercial mortgage loans and can oversee decisions involving loan workouts, modifications, property funding and resolution. The debt is held by investors who hold “certificates" that can be traded as values rise and fall.
Victor 2040’s position is that the current servicing structure has created obstacles to investment in the property. The proposed acquisition provides an alternative path focused on maintaining Eastview, supporting investment and protecting its long-term economic role in Victor.
Why not simply let Wilmorite and the lenders resolve the situation?
8
What happens if the current situation continues?
9
Victor 2040’s concern is that continued uncertainty and restrictions associated with the current financing and servicing structure could make it more difficult to fund maintenance, tenant improvements and leasing, potentially weakening the property’s value and economic contribution to Victor. The proposed structure is intended to provide greater certainty and a path for continued investment.
It was reported that Rialto disbursed $9.4 million for Eastview Mall’s operating expenses, is this correct?
10
This is misleading. All revenues are under Rialto’s control, so naturally, funds must be released to cover normal operating expenses, which is what the $9.4 million refers to. What Rialto has failed to fund are critical maintenance needs and new tenant deals, while also withholding funds for normal expenses related to new tenants, including tenant improvement and leasing commissions. Rialto is in court trying to change management to an out of town manager which would unnecessarily cost the property millions of dollars in transitional costs and set back years of progress.
Rialto collected approximately $10 million in fees from Eastview Mall over the past three years, while the lenders it was engaged to serve went nearly a year without receiving their regular debt-service payments.