An iconic Birmingham building has entered receivership after failing to generate the revenue needed to cover loan requirements, according to a report from the Birmingham Business Journal.
The 34-story Shipt Tower is facing occupancy struggles, a trend for commercial real estate in a post-COVID-19 environment.
Prior to the Shipt branding, the structure was built in 1986 and was known as the SouthTrust Tower until 2005. After SouthTrust's merger with Wachovia, it became the Wachovia Tower in 2005. In 2010, it became the Wells Fargo Tower, and in 2020, it became the Shipt Tower.
The problems for Shipt Tower are not the only commercial real estate woes for Birmingham.
Also, according to the Birmingham Business Journal, a recent analysis of commercial mortgage-backed securities data showed that Birmingham had 162 loans with a combined balance of $633 million maturing by the end of this year.
Jeff Poor is the editor in chief of 1819 News and host of "The Jeff Poor Show," heard Monday-Friday, 9 a.m.-noon on Mobile's FM Talk 106.5. To connect or comment, email jeff.poor@1819News.com or follow him on Twitter @jeff_poor.
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