The properties were remanded to Des Moines, Iowa-based Principal Life Insurance Co., a subsidiary of Principal Financial Group, after Heilig-Meyers entered bankruptcy proceedings. Donna Kolius, senior vice president with CB Richard Ellis tells GlobeSt.com that the insurance company obtained the properties in exchange for loans owed by Heilig-Meyers. Kolius says the properties sold for 98% of their estimated value.

Kolius and the CB Richard Ellis portfolio services team, which includes director Jim Tipps placed the properties on the market in August 2001. All closings were completed within six months. "This is further validation that the effect of Sept. 11 and lackluster retail sales nationally do not have a long-term negative impact on commercial real estate sales," she says.

California, Georgia, Kentucky, New Mexico and Tennessee each had one store; Alabama, and South Carolina, two each; and North Carolina, four. The properties are located in secondary and tertiary cities such as Valdosta, GA; Hanford, CA; and Kannapolis, NC. "Normally, this can present a big challenge," she says.

All stores were vacant at sale time. Consequently, the team marketed the locations with the potential for such uses as call centers, warehouse/storage facilities, telecommunications switching spaces, schools and administrative offices. Kolius says ultimately there was no challenge. She credits other furniture retailers eager to expand and motivated investors willing to take a chance on empty buildings with a speedy disposition of the portfolio.