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Business & Tech

Crain's: Owners of Geneva Commons Default on $40 Million Loan

Crain's Chicago Real Estate Daily says the Commons shopping center is up for sale.

Chicao Real Estate Daily is reporting that the Geneva Commons shopping center have failed to pay back a $40.4 million loan when it came due May 1 and that the 438,000-square-foot shopping center is up for sale.

The property is owned by two limited partnerships advised by Atlanta-based Invesco Ltd., according to the Chicago Real Estate Daily website powered by Crain's Chicago Business.

Crain's says the retail market is bouncing back from the recession, and Geneva Commons has a 91.3 percent occupancy rate, according to a listing on CBREmarketplace.com.

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"CBRE is pleased to present qualified investors this offering of a 100% interest in Geneva Commons, a core-quality lifestyle center located in the affluent and growing Chicago suburb of Geneva, Illinois," the site says.

"Geneva Commons is one of the top two lifestyle centers in metro Chicago in terms of sales performance, trade area demographics and in its breadth and quality of retail mix. It is the dominant fashion center serving the far western suburbs of Chicago. Geneva Commons’ primary trade area has an attractive demographic profile that is characterized as young, educated and upper-income with a growing population base."

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Crain's reports that the occupancy rate fell to 90 percent in the first quarter of 2012 after hitting 98 percent in 2007. Crain's cites loan reports from Bloomberg L.P. for that information.

Regarding the loan, Crain's said its information comes from a report about the debt from Fitch Ratings. The $40 million debt is part of a $76 million loan from 2003 which was split into two parts and sold to investors. The second part of that loan isn't clear, Crain's says, "but it's likely that that debt is in default, too."

About 39 percent of the leases at the Commons expire between June 2012 and June 2014, which makes the sale a bit more difficult, Crain's says.

Geneva Commons is up for sale, but the challenge for Invesco may be finding a buyer given the property's scheduled tenant turnover. One of the Bloomberg reports shows that 39 percent of leases at Geneva Commons expire between June 2012 and June 2014.

Another eye-opener in the Crain's story is that Barnes & Noble Inc. plans to close about a third of its stores over the next decade. Of course, Barnes & Noble is one of the Commons' big tenants. Dick’s Sporting Goods and Crate & Barrel are listed as the other "anchors."

The taxpayers of record at the Kane County Treasurer's Office are V V USA City L.P. and Invesco Real Estate Germany L.P.



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Crain's: Owners of Geneva Shopping Center Default on $40 Million Loan

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