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Elk Grove Promenade

Posted by JimG • September 14, 2009 • Printer-friendly

elkgrovemall

Elk Grove Promenade

Dale Kasler of the Bee reported on problems with commercial real estate,  and the Elk Grove Promenade provided one of the most extreme examples.
"Sacramento, I think, got a little ahead of itself," said Walter Bialas, vice president for research at Madison Marquette.
In the old days, Bialas said, developers waited until homes were built before they put in shopping centers. But in the latest boom, in places like Sacramento, developers went ahead with retail before the homes went up, he said. That left many shopping centers vulnerable to the collapse of the housing market.
The most striking example of Sacramento's over-reaching might be the Elk Grove Promenade, an unfinished regional shopping mall that was supposed to bring Macy's and other retailers to the suburb's southern frontier.
The developer, General Growth Properties Inc. of Chicago, poured tens of millions into the Promenade in anticipation of nonstop growth. But the abrupt downturn in residential construction left the Promenade cut off from its oxygen supply: Laguna Ridge, the nearest big subdivision, is two miles north and remains largely unpopulated.
The Promenade halted construction last October amid $29 million in contractor liens and lawsuits. Today, it is fenced off, with weeds sprouting in the parking lot medians. General Growth filed for bankruptcy protection in April, leaving the mall's future uncertain at best. The company values the Promenade site at $189 million, according to court records.
The property likely will be sold "for dimes on the dollar," but the center won't open for several years, said Garrick Brown, research director in the Sacramento office of broker Colliers International Inc.
"There's no way I see anything there before 2012 at the earliest," Brown said. Whoever buys it "is going to have to be someone who has deep pockets and patience."
Before going bankrupt, General Growth tried to find a joint-venture partner to finish the mall. That didn't work, and the company is no longer "marketing the property for sale," said spokeswoman Nicole Spreck.
For the full story, see: http://www.sacbee.com/business/story/2180413.html

Dale Kasler of the Bee reported today on problems with commercial real estate,  and the Elk Grove Promenade provided one of the most extreme examples.

"Sacramento, I think, got a little ahead of itself," said Walter Bialas, vice president for research at Madison Marquette.

In the old days, Bialas said, developers waited until homes were built before they put in shopping centers. But in the latest boom, in places like Sacramento, developers went ahead with retail before the homes went up, he said. That left many shopping centers vulnerable to the collapse of the housing market.

The most striking example of Sacramento's over-reaching might be the Elk Grove Promenade, an unfinished regional shopping mall that was supposed to bring Macy's and other retailers to the suburb's southern frontier.

The developer, General Growth Properties Inc. of Chicago, poured tens of millions into the Promenade in anticipation of nonstop growth. But the abrupt downturn in residential construction left the Promenade cut off from its oxygen supply: Laguna Ridge, the nearest big subdivision, is two miles north and remains largely unpopulated.

The Promenade halted construction last October amid $29 million in contractor liens and lawsuits. Today, it is fenced off, with weeds sprouting in the parking lot medians. General Growth filed for bankruptcy protection in April, leaving the mall's future uncertain at best. The company values the Promenade site at $189 million, according to court records.

The property likely will be sold "for dimes on the dollar," but the center won't open for several years, said Garrick Brown, research director in the Sacramento office of broker Colliers International Inc.

"There's no way I see anything there before 2012 at the earliest," Brown said. Whoever buys it "is going to have to be someone who has deep pockets and patience."

Before going bankrupt, General Growth tried to find a joint-venture partner to finish the mall. That didn't work, and the company is no longer "marketing the property for sale," said spokeswoman Nicole Spreck.

For the full story, see: HERE

And other news of General Growth Properties can be found HERE and HERE.


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