Such short sales have become increasingly common in the commercial real estate market, as property values have plunged and lenders have become more willing to take a loss and move on. Centrum decided the time was right because of the strength of the local multifamily market, which could generate interest in the project’s 342 apartments, says Centrum Partner John McLinden.
But investors will be less enthusiastic about the project’s 398,000-square-feet shopping center. Just 23% of the retail space is occupied, to one tenant, movie chain Kerasotes ShowPlace Theatres LLC.
We've had some recent post on the RC, so who knows what the future holds. As you might remember, we pondered potential businesses that could come to this space and we also got an intriguing comment from the president of Chiasso (a great modern design store up in the Lincoln Park). Stay tuned.
I really hope there will be more news on the retail soon! I would love to see a European style restaurant/cafe with plenty of outdoor seating. It would also be nice if the new owner fulfills the old promise of the "beautifully landscaped park".....sigh.
ReplyDeleteThis is not a good sign. And just shows that all of those "rumors" that commercial tenants were inked and would open in 2011 were completely FALSE. Again, if not for construction contract contingencies, you would not even have the Kerasotes Theater open. The conversion of this place to all rental after construction is unprecedented. Sign of how bad things are in the Sloop. Look at the COMPLETELY EMPTY 40-story highrise @ Indiana and Cermak! The Million+ square feet of empty and abandoned retail space along south Michigan Ave. Foreclosures far out-number sales and the only commercial space that is being sold is done via auction (and then sits empty post-auction because the highest bidder has no plans to open retail). Couple all of this with news lately of many long-standing sloop mainstays shuttering their doors (e.g., south loop wine cellar) and it is NOT a pretty picture.
ReplyDeleteYou can run-up the votes for the "Curbed Cup" all you want, but you're only fooling yourself.
The future of retail depends literally on each individual resident of the sloop. So panicking and crappy attitude that some display is the opposite of what needs to happen.
ReplyDeleteSloop will be fine.
It is worrying, but let's not exaggerate the figures. In the last six months per the MLS 55 out of 257 condo/townhomes were short sales or foreclosures. Lots of condo buildings have converted to rentals over the last two years, not just in the South Loop. The movie theater seems to be doing ok too.
ReplyDeleteThere isn't even one million square feet of retail space along South Michigan Avenue in the South Loop, so where did you pull this vacancy figure from? I don't expect a reply but am curious as to what your true interest is in spreading this type of deception.
ReplyDeleteThe headline should read: "Centrum Abandoning South Loop (along with all other retailers)."
ReplyDeleteMaybe this is a great sign. It's become apparent that RC has long needed some new blood and renewed energy to get the property operating as it should. Whoever buys the property will be getting a great deal, thus be able to attract commercial tenants by having lower rent than needed by Centrum to cover their costs. I'm a slooper who currently lives in Arizona and still owns a loft in the South Loop. I'm involved in real estate here in AZ and can tell you that our neighborhood will make a huge comeback from where were at right now. Pay no mind to the doom and gloomers, the whole country is going through the same thing we are in terms of real estate. The difference is our neighborhood has so much more going for it, the least of which is being located directly next to an international business center, world class museums, parks, lakes, and so much more. It's obviously not a good time to sell right now, not only in the South Loop but anywhere in the U.S. It's gonna take a few years to recycle all of the foreclosures, but all of the empty units will one day be occupied, and won't take as much time as people are predicting, it will be inside of 5 years. Long live the South Loop
ReplyDeleteRe: anon
ReplyDeleteI think a more accurate (and less inflammatory) headline would read: Developers and Retailers Burned by the Housing Bubble Cutting their Losses
@Mai. The Roosevelt Collection's own site
ReplyDeletementions it has 1.3 million square feet for commercial ... not sure how much the movie theater takes up ... but it's got a LOT of retail space.
from the site:
Convenience meets style in the multi-faceted shopping, dining and entertainment environment that is the Roosevelt Collection. The magic isn’t in the numbers – although 1.3 million square feet of space provides ample opportunities.
I agree that it will eventually be a success. The timing was just horrific.