Thwarted in a bid to extend a $26.2 million loan, the owner of a Roosevelt Road retail center whose tenants include Best Buy Co. and Bed Bath and Beyond Inc. has file for Chapter 11 bankruptcy.When the five-story project at 555 W. Roosevelt Road was completed in March 2008, it was part of a wave of developments looking to take advantage of retailers' keen interest in the fast-growing commercial district. Built by developer Leon Joffe, the development, called Joffco Square, includes 95,000 square feet of retail space and a 323-car garage.Now, despite signs that the credit crunch is easing, the development is another reminder of the tough challenges landlords face in an era of lowered property values and stricter lending practices.
Although things don't look good for the owner, it appears that the development won't be going anywhere as many tenants have long term leases:
The center has a solid core of tenants under long-term leases. Best Buy has 45,000 square feet under an agreement that expires in January 2024. Bed, Bath and Beyond has 27,482 square feet under an agreement that expires in January 2018.(Hat Tip: Nitman!)