January 6, 2010
InsideBayArea has an article out discussing some of the retail projects that have fallen into foreclosure. The projects listed include:
- Saigon Village LLC, owner of a Vietnamese-themed retail village that us proposed for Stevenson Boulevard between Cedar Boulevard and Albrae Street in Fremont, listed $18.5 million in mortgage debts and a property value of $24 million.
- Orchard Retail Newark I, which owns Aspenwood Plaza retail center at 34901 Newark Blvd. in Newark, listed $4.7 million in mortgage debts and $2.5 million as the center’s value.
- Santa Clara Square LLC, owner of a 12-acre site on El Camino Real between Lawrence Expressway and Halford Street, listed at least $10 million in debts. The owners have proposed construction of 120,000 square feet of retail, 490 residential units and 20,000 square feet of offices. The owner also has a $13.5 million mortgage on the property.
- Sorrento Pavilion LLC, which owns a two-building retail plaza in San Jose at 743 S. Winchester Blvd., listed a mortgage of $4.5 million and a property value of $8 million.
- San Carlos Plaza LLC, owner of a two-store retail development at 1655 W. San Carlos St. in San Jose, said it has $1 million to $10 million in debts and has a $2.2 million mortgage on the property.
The squeeze is just beginning. For the five projects listed, there is a multiple number of assets that have not yet had a notice of default filed against them or filed bankruptcy.
With the Christmas season over, we will likely see some further retail closures over the next few months as the economy continues to remain weak. This will lead to further pressure on owners. What will be the saving grace for South Bay and Peninsula retail property owners however is that as the region has grown, retail development has generally lagged. Areas in the East Bay and Sacramento for instance, have been and will continue to be hit the hardest, as retail development in many instances outpaced the residential and employment growth.
[via Inside Bay Area]
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