Chronologie der Krise

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USA: Shopping-Mall mit Problemen…

Posted by hw71 - 21. Dezember 2009

Nachdem zwei der größten Mieter wegen Insolvenz ausgefallen sind, gerät nun das erst vor fünf Jahren neu eröffnete „Algonquin Commons“ in’s Wanken. Laut nachfolgendem Artikel reicht der Cashflow der Mall nicht mehr aus, um die Kredite zu bedienen => Ende September waren noch 91% der insgesamt 56.000 m2 belegt!

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Loan problems dog lifestyle center

By: Alby Gallun Dec. 16, 2009

(Crain’s) — After losing two of its largest tenants to bankruptcy, a big shopping center in Algonquin that opened five years ago now faces financial problems of its own.

Algonquin Commons, a 565,000-square-foot mall in the northwest suburb, is no longer generating enough cash flow to cover its loan payments. Its owner, a joint venture led by Oak Brook-based Inland Real Estate Corp., wants to restructure $92.1 million in debt on the property.

It is the largest local retail property to run into loan trouble in the current real estate slump.

Revenue at Algonquin Commons has fallen over the past year or so because of the deteriorating retail climate and the demise of its second- and third-largest tenants, Wickes Furniture Co. and Circuit City Stores Inc., which have liquidated after filing for Chapter 11 protection last year.

The property, at 1900 S. Randall Road, was 91% occupied at the end of September, down from 99% when the Inland joint venture bought it in 2006.

Algonquin Commons “has been impacted by the bankruptcies of Wickes Furniture and Circuit City and we are actively working to re-tenant those spaces,” an Inland spokesman says in an e-mail. “We also are looking to improve our position at the asset through negotiations with the lender.”

Though the Inland joint venture is current on loan payments, the property’s net cash flow fell to 0.95 of its debt service obligation in the nine months ended Sept. 30, according to a recent report by the special servicer.

The venture says “that due to the market conditions and property-specific conditions,” the mall is “unable to continue supporting monthly debt service,” the report said.

A growing number of retail landlords in the Chicago area face similar problems as retailers shut down stores and demand rent relief.

Among all property types, retail is the biggest source of trouble locally, with $1.3 billion in distressed loans, according to a recent report by Real Capital Analytics Inc., a New York-based research firm. Algonquin Commons is the largest local retail property on the firm’s list of troubled assets.

Completed in 2004, Algonquin Commons is a so-called lifestyle center, a high-end shopping mall with freestanding stores and sidewalks but no department stores, unlike an enclosed mall. A joint venture between Inland and the New York State Teachers Retirement System paid $154 million for the property in February 2006.

Algonquin Commons is secured by two loans totaling $92.1 million that were pooled with other commercial mortgages in 2007 and sold to investors in a commercial mortgage-backed securities (CMBS) offering.

In September, the Inland venture asked that the Algonquin loans be placed with the special servicer, a company hired to work out problem loans for CMBS investors. The loans mature in 2014.

The Inland spokesman declines to discuss specifics of the restructuring talks, and a spokeswoman for the servicer, Centerline Servicing Inc., also declines to comment.

A representative of the teachers pension fund did not return a phone call.

The Inland venture has asked Centerline to convert the outstanding debt to a cash-flow mortgage for five years, according the recent Centerline report.

The report doesn’t specify terms, but a cash-flow mortgage typically allows a borrower to pay a lender whatever it can after covering operating expenses and capital expenses, even if the payment falls short of the required debt service.

Centerline has rejected the proposed modification, the report says.

Algonquin Commons is one of 14 Chicago-area retail properties that Inland, a real estate investment trust, owns in its joint venture with the New York teachers pension fund.

Though the mall’s cash flow falls short of loan payments, debt service is paid out of operating cash flow from all the properties in the joint venture, the Inland spokesman says.

The Inland venture has told the servicer that it has no plans to stop making payments on the loans, according to the Centerline report. That could limit its leverage in restructuring talks: The special servicer may be less willing to cut a deal if it knows that the venture has no plans to walk away from the property.


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