Foreclosure Lawsuit Filed Against Inland's Algonquin Commons

The lawsuit against the 565,000 square foot property is one of the largest foreclosure suits in the Chicago area in recent history, according to Crain's Real Estate Daily.

A foreclosure lawsuit has been filed against Inland Real Estate Corp. for allegations that the Oakbrook-based company stopped making payments on two separate Algonquin Commons shopping center loans last summer, according to media reports.

U.S. BANK N.A. filed the foreclosure suit in Kane County Circuit Court in December, seeking repayments of the two loans totaling $109 million, according to the Daily Herald. 

The Daily Herald reports Inland ongoing vacancies and certain leases that "allowed some tenants to reduce their monthly rents" as a source for its financial woes.

The Chicago Business Journal reports the lawsuit filed against the 565,000 square foot property is one of the largest foreclosure cases filed in the Chicago area in recent years. 

Crain's Real Estate Daily reports that in 2011, Algonquin Commons' net cash flow dropped "nearly a third" to $3.5 million while its annual debt service costs totaled $5.3 million. 

Real Estate Daily cites a New York research analyst who touches on the overall financial difficulties facing shopping center owners in recent years as borrowers face difficulties refinancing loans and the threat of losing one large tenant that causes others to follow.

In September, Algonquin Commons had 88 percent of its vacancies filled, according to the Chicago Business Journal. 

There has been plenty of turnover at the Commons in the past two years. Most recently, Williams-Sonoma announced it would leave the Commons, with its final day this Sunday. 

One of the more notable closures came over the summer of 2011 when the Commons' Borders closed its doors as part of the book store chain’s reorganization under Chapter 11 bankruptcy.

A portion of the space has since been filled by Family Christian Stores. Half Book Stores will soon occupy the remainder of the space, with plans to open in late March or early April, according to the Algonquin Commons website.

Dot January 24, 2013 at 03:40 PM
How will this action impact the businesses at the Commons?
Dominick January 24, 2013 at 03:50 PM
Dot, this would have no impact on existing businesses as long as they remain current on the rent. Even if it were foreclosed the bank & any future owners of the property would have to keep existing leases in place. As long as they are all current on rent of course. I can tell you that in my opinion the Commons looks to do a decent business. Also look & how long Spring Hill Mall & Huntley Outlet Mall have been able to hang on for with much more vacancies & far less revenues. No worries. The Commons will be around for at least a few more years no matter what.
jeff January 24, 2013 at 05:34 PM
I love Obama! In the past 6 weeks I made over 24k in profit selling a small portion of my AR-15 collection if he hadn't opened his mouth on gun control I would have been lucky to profit maybe half of that. Where can I get one of his phones? I owe him at least that!
Anthony P. January 24, 2013 at 10:09 PM
88% occupancy? There's absolutely no reason for this to fail, even with Boarders closing. POOR MANAGEMENT!
Joel Parker January 26, 2013 at 08:13 AM
Dan U look like u are retired despite your disguise and therefor receiving your own type of unemployment it is called Social Security. Also,it's direct deposited so u don't have to Leave the house ,what a deal u have u ungrateful $$$ Oh, u are also mostly likely on Medicare. Is your memory that bad don't worry it is covered by , u guest it,Obama Care. Do u realize u are one of the 47% Romney was criticizing.U simply can't see clearly through those ridiculous glasses.


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