Thursday, April 16, 2009

General Growth Properties (Elk Grove Promenade Builder) Bankrupt

General Growth Properties, the owner of the stalled, half-built Elk Grove Promenade, has filed for Chapt 11 bankruptcy protection:

General Growth Properties, Inc. Files For Chapter 11 Protection; Broken Credit Markets Require GGP To Reduce And Restructure Debt

CHICAGO, April 16, 2009--GENERAL GROWTH PROPERTIES, INC. (NYSE: GGP) (“GGP”) today announced that it is voluntarily seeking relief to reduce and restructure its debts under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. In addition, approximately 158 regional shopping centers owned by GGP and certain other GGP subsidiaries (collectively with GGP, the “Company”) have also filed for protection. The Company intends to work with its constituencies to emerge from bankruptcy as quickly as possible while executing on a plan of reorganization that preserves the Company’s integrated, national business operations.
The New York Times is calling GGP's collapse "one of the biggest commercial real estate collapses in United States history."

Here are some recent photos I took of the incomplete Promenade. Also of note, the City of Elk Grove has spent over $40 million on roadway improvements to provide access to the Promenade (pdf).


patient renter said...

I caught a worthless media take on this at lunch. According to NPR, GGP's downfall was due to the credit crunch. Uh huh. It's like blaming personal bankruptcy on credit card limits.

Tomorrow's headline: Credit Crunch Responsible for Gulf of Tonkin Incident.

Max said...

Yeah, I let that one go. Rationalization is in full swing these days; hell, the reason the stock market is doing so well is because things aren't declining as fast. LOL!

Until this optimism is killed, we still have a long way to go.