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La Cantera always felt a little "iffy" to me!
I told you guys this was coming...these guy own North Star Mall and La Cantera...
Chicago-based General Growth Properties, which owns North Star Mall and The Shops at La Cantera, Thursday filed for Chapter 11 bankruptcy.
The company filed because it could not refinance as much as $1.12 billion in debt that was overdue. The giant mall owner had $27 billion in total debt.
In addition to the company, 158 properties have filed for protection, including North Star Mall. This does not mean the mall will close -- the company says it will continue operating its properties as usual.
"Our core business remains sound and is performing well with stable cash flows. We believe that Chapter 11 is the best process for restructuring maturing mortgage loans, reducing the company's corporate debt, and establishing a sustainable, long-term capital structure for the company," Adam Metz, CEO of General Growth, said in a statement. "While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11."
La Cantera always felt a little "iffy" to me!
I can fix that.
i'll help u fix
easy call to make.
Now I feel guilty for never shopping at the Shops at La Cantera.
North Star Mall isn't what it used to be.
It was bound to happen as soon as Central Park Mall was leveled ...
I've not been inside of a mall in years.
its not just about malls.
nothing but ty stores and a bunch of international s.
And high end prices which leaves me out.
I just think more people are buying online, rather than going into the mall.And high end prices which leaves me out.
Of course. And how many banks are invested in that asset class which ultimately overstates their true capital position?
Not to mention the billions of dollars of iffy credit card receivables still being carried as assets that will probably never be repaid.
It's cool. Some Asians will give us $.
I concur. Overstock.com!! I buy quite a bit of stuff online but it all depends on the shipping costs.
LOL
Looks like they are starting to buy copper instead. They may be commies but they ain't stupid. They see where the dollar is headed.
Space cash, according to South Park.
At least they aren't stealing to finance their crack habit....
Maybe they simply made investments that didn't pan out? I know it wasn't no drop in the bucket to build the Shops at La Cantera and the money coming in simply isn't what they thought it would be?
Joe...this is not an isolated case. Commercial/Retail is overbuilt and their client base is falling. Major retail anchor chains are going bankrupt and closing stores. They built all these centers with borrowed money and don't have the cash to make payments.
This is going to be the next "mortgage crisis" that the Feds say they have to bailout if the "credit card default crisis" doesn't get there first.
This ain't over.
Yup. Like I've mentioned before when I drive on NE 1604 I see all these new shopping centers and businesses opening up and I wonder how they are getting customers and surviving since most of the businesses are ones that I'll never step foot in. Not they need my measly spending.
CRE is usually a lagging indicator, isn't it?
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