Illinois shopping mall facing foreclosure

Illinois residents are feeling the recession just like everyone else in the country. When money is tight, people just don't do a lot of retail shopping. It's no surprise then that a lot of retail stores around the country are feeling the pinch. That being said, it shouldn't be terribly surprising that a shopping mall is facing foreclosure.

The Machesney Park Mall in Illinois should have paid off the remaining balance of a $1.9 million dollar loan last October. Rubloff Development took out the loan in 2004 to purchase the mall. According to court documents, Rubloff Development still owes over $600,000 on the loan along with unpaid property taxes.

The foreclosure has implications not only for the mall owner, but also the stores in the mall and the town where the mall is located. The village has almost completed a $1.3 million project to add a new access road and traffic lights near the entrance to the mall, which is also being reconstructed as part of the project. The larger anchor stores own their property, but the impact of the foreclosure on the smaller stores is unknown right now.

The future ownership of the mall is up in the air right now. Someone could come in and purchase the mall from the current owner, or the current owner may decide to file Chapter 11 bankruptcy in an attempt to keep the property, or any other options in between. One thing is for certain, Rubloff Development has some hard decisions to make with regard to the foreclosure. Hopefully, whatever decisions are made will benefit all of the parties involved.

Source: Rockford Register Star, "Foreclosure filed against Machesney Park Mall," Greg Stanley, Aug. 9, 2012.

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