Lincolnwood Town Center’s $47M loan in default again

Washington Prime Group skipped January payment after forbearance agreement expired

Chicago /
Mar.March 18, 2021 04:22 PM
Lincolnwood Town Center in Lincolnwood and Washington Prime Group CEO Louis Conforti (Google Maps, Twitter)

Lincolnwood Town Center in Lincolnwood and Washington Prime Group CEO Louis Conforti (Google Maps, Twitter)

The Lincolnwood Town Center has joined the list of Chicago-area malls facing mounting financial troubles.

Mall owner Washington Prime Group defaulted again on its $47 million mortgage, according to Crain’s. The company most recently skipped a January payment on the loan, which has a looming maturity deadline of April 1, the report noted.

The Ohio-based real estate investment trust said in its fourth quarter earnings report Tuesday that “there exists substantial doubt about the company’s ability to continue as a going concern,” according to the Columbus Dispatch.

Last year, Washington Prime, led by Louis Conforti, negotiated a forbearance agreement with its lender on the 423,000-square-foot Lincolnwood complex. The REIT was allowed to withhold mortgage payments from May through October on the 30-year-old property, according to Crain’s.

The company is a spinoff of mall giant Simon Property Group and operates 100 shopping centers nationwide, including three in Illinois.

The pandemic has decimated shopping centers and retail operators across the country, including several outside Chicago. In October, news broke that Starwood Retail Partners was handing over the keys to its lender on the nearly 1 million-square-foot Louis Joliet Mall. That came after the company defaulted on its loan last spring, and a couple of months after parent company Starwood Capital Group lost control of a seven-property regional mall portfolio.

Two large Chicago-area malls owned separately by Simon and a KKR-led venture — Gurnee Mills and Yorktown Center — also struggled last spring, missing debt payments.

And in the fall, a report showed that Cook County malls and hotels had skipped nearly $500 million in property tax payments. [Crain’s] — Alexi Friedman


Related Articles

arrow_forward_ios
From left: ShowingTime's Michael Lane, Baird & Warner's Stephen Baird, and The Inland Real Estate Group's Daniel Goodwin (Getty Images, Baird & Warner, The Inland Real Estate Group, ShowingTime)
These Chicago real estate companies got the most PPP money
These Chicago real estate companies got the most PPP money
555 North Michigan Ave and Aritzia's Jennifer Wong (CBRE, Aritzia)
Mag Mile to get largest retail lease since 2015
Mag Mile to get largest retail lease since 2015
Placeholder image
Australian retailer Ksubi to open 2,500sf store in Chicago’s Gold Coast
Australian retailer Ksubi to open 2,500sf store in Chicago’s Gold Coast
166 E. Superior St. (Google Maps)
Downtown Chicago hotel sells at huge loss
Downtown Chicago hotel sells at huge loss
Lost Lake, which is closing this weekend, is one of almost 300 restaurants to close since Q4 of 2021 (iStock, Google Maps)
Omicron devastates Chicago restaurants
Omicron devastates Chicago restaurants
Assortment of Fannie May retail stores hits market
Assortment of Fannie May retail stores hits market
Assortment of Fannie May retail stores hits market
BMO Harris Bank CEO David Casper (Google Maps, BMO)
BMO Harris Bank to close 9 locations in Chicago area amid retail woes
BMO Harris Bank to close 9 locations in Chicago area amid retail woes
The Drake Hotel (Turner Construction, Getty)
Drake Hotel, host to royals and mobsters alike, hits market
Drake Hotel, host to royals and mobsters alike, hits market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...