Arlington Hts. shopping complex at heart of foreclosure case
Twenty-nine investment firms that backed Arlington Town Square in downtown Arlington Heights are being sued for missing payments on a $19.8 million mortgage on the property.
But officials say the action shouldn't affect business in the prominent development, ranging from privately owned restaurants to a movie theater and big-name retail chains.
The case was filed in early February in Cook County Circuit Court by WBCMT 2000-C33 Evergreen Avenue LLC, an affiliate of Florida-based LNR Partners Inc., a real estate firm and special servicer for the holder of the loan.
"Based on the research that we've done, everyone advises us that there's no impact on the tenants (stores) and consumers," said Charles Witherington-Perkins, Arlington Heights director of planning and commercial development. "This is a foreclosure process that could take a very long time, because there are 29 entities involved."
The 29 investment firms all have "Arlington Town Square LLC" in their titles preceded by a different name or other identifier. A search of state records show those firms consist of more than 50 individuals, family trusts and companies based in California, Idaho, New Mexico, Wisconsin, West Virginia, Hawaii, Florida, Tennessee and Utah.
"Hopefully, there will be a new purchaser," said Arlington Heights Mayor Arlene Mulder. "Like a lot of big projects, like the Sheraton (that recently closed), they can't make ends meet in this economy."
The 137,000-square-foot shopping area along Arlington Heights Road near Northwest Highway opened in December 1999 with most stores opening during 2000. Stores include Panera Bread, California Pizza Kitchen, Starbucks, Ann Taylor Loft, Jos. A. Bank Clothiers, the Arlington Theatres, along with some office space. The site is about 87 percent leased,
The area was redeveloped to help revitalize the Arlington Heights downtown. Before that, the site generated only about $65,000 annually in property taxes, Witherington-Perkins said. Arlington Town Square now generates about $1.7 million to $1.8 million in annual property taxes to local taxing bodies.
That includes the village of Arlington Heights, which receives about 10 percent of the annual total, he said.
This commercial foreclosure proceeding is like many others as it wends its way through the court system. If the investors fail to pay, then the court could approve a foreclosure and the lender could take control of the property. The lender then could run it or try to sell it, Witherington-Perkins said.
The case said the mortgage on the property was taken out in March 2007 and the investors have stopped paying since last September. The case seeks to foreclose on the property and sell the real estate. It also asks the court to appoint a receiver and include legal expenses and fees.
David Lynch, an attorney with Chicago-based DLA Piper, representing the holder of the loan, declined to comment.
An attorney for the 29 investors, Robert Dyess Jr., an attorney with Newport Beach, Calif.,-based Good, Wildman, Hegness & Walley law firm, did not immediately return a call and e-mail.