Categorized | Residential

Major Property in Illinois Town Faces Foreclosure

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A prime commercial property that has been considered to be the heart of growth in a Chicago suburb is now facing a serious risk of foreclosure. The property, known as Metropolitan Square in Des Plaines, Illinois, was once considered to be centerpiece in the rebuilding of the town’s business sector.

Unfortunately, the property owner has fallen more than sixty days behind on the mortgage payments, leading both tenants and officials alike to believe that the property may fall into foreclosure. The property owner currently has a seventeen million dollar bank loan out for Metropolitan Square, and has defaulted on the loan more than once after missing numerous payments.

There is hope that the property owner will be able to rework the overall lending agreement before foreclosure hearings begin. The property owner claims that if payments are adjusted to become more affordable, they will be made on time now and in the future.

The property was crucial to the overall development of Des Plaines, as the city invested more than twenty million dollars into its construction. It currently features a tremendous amount of retail and office space, as well as more than one hundred condominiums. The commercial property’s biggest tenant is a Shop-N-Save grocery store.

The current owner of Metropolitan Square is Schwinge Family LP. They purchased the retail property in 2007. One of the primary reasons why Schwinge Family LP has not yet been able to afford its monthly payments is that the property has experienced fairly high vacancy rates. These vacancy rates are primarily due to rents being too high. Businesses have not been able to sustain themselves as a result of the high rents.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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