After foreclosure, Glen Town Center goes up for sale

(Crain’s, August 15, 2013) The Glen Town Center, a foreclosed shopping complex in Glenview, is up for sale.

A venture of Houston-based Situs Cos. has completed a $55.6 million foreclosure suit on about 267,000 square feet of retail space in the apartment-and-shopping compound, according to a Bloomberg L.P. report about the property’s debt, taking the space back from an affiliate of San Diego-based mall developer OliverMcMillan LLC.

Situs, a loan servicer that oversees the property for investors who own mortgage bonds backed by it, has hired Oakbrook Terrace-based Mid-America Real Estate Corp. to sell the property. A Situs spokeswoman did not respond to requests for comment.

The property is being offering without an asking price, Ben Wineman, a Mid-America principal, said in an email.

Located on the site of the former Glenview Naval Air Station, the Glen Town Center includes a Von Maur store, a movie theater and apartments that are owned separately.

The shopping center has struggled, losing money each year from 2007 to 2011, according to the Bloomberg loan report. The property is currently about 90 percent leased, according to S.L. van der Zanden, managing principal and CEO of Chicago-based ReSolutions, the court-appointed receiver for the property.

In 2011, the last year for which data is available, the property generated $1.7 million in net cash flow before debt service, as compared to close to $3 million in loan payments due that year.

The buyer pool for the property may be limited because the Glen’s retail space doesn’t fit traditional categories investors seek, said Chad Firsel, president of Chicago-based Quantum Real Estate Advisors Inc.

“The challenge there is it doesn’t fit in a box … in the sense that it’s not grocery anchored and it’s not a true power center,” Mr. Firsel said. Despite wealthy consumers that live nearby, the property isn’t located on any of the key north suburban shopping corridors, he added.

OliverMcMillan declined to comment.

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