Hoffman Estates shopping center hit by foreclosure suit

A Hoffman Estates shopping center on the village's west side has been hit with a $15.8-million foreclosure suit two years after it opened.

The 7-acre Prairie Stone Crossing opened in 2008 anchored by Sports Authority. The four-building center is off Old Sutton Road and Hoffman Boulevard (formerly Columbine Boulevard), near the Addams Tollway and Route 59.

First Bank, based in Missouri, filed the suit on July 15 in Cook County Circuit Court, claiming that developer United Growth first defaulted on payments in January. The San Francisco-based group bought the land from Sears Holding LLC in 2006 for $6.1 million. There are six vacancies out of 10 listed on the center's main sign.

Hoffman Estates Mayor William McLeod says he's not "stunned" by the news, but is "optimistic something will be there eventually. We've gone through ups and downs before."

McLeod and Village Manager James Norris said the foreclosure suit is indicative of a nationwide trend and not unique to the Hoffman Estates area. Norris said money for developers is tighter than it was three years ago.

"Obviously we're disappointed," he said. "But we know it's still a beautiful piece of property."

The foreclosure suit doesn't change the village's strategy in filling the store vacancies, though it could make any agreements with potential tenants more complicated. For example, under foreclosure the court would have to review any leases before they are signed.

Consisting of three buildings plus a restaurant pad, Prairie Stone Crossing takes up about 70,000 square feet of retail space. The restaurant pad was intended for Famous Dave's, but the barbecue chain terminated its lease in 2008 and the spot has remained vacant since. Norris added existing businesses at the site, including the Sports Authority, Sears Optical, Great Clips and Chipotle, would not be affected by the suit.

Village officials hoped the area around the Sears Centre would attract restaurants and retailers to form an entertainment district, including a planned amphitheater. Residents complained about the potential for loud music. That coupled with difficulties securing credit snarled that project. Plans for a water park and hotel combo, as well as the Saddle Room restaurant with an off-track betting parlor, also remain stalled with money problems.

Meanwhile, employees from the nearby corporate offices of AT&T and Sears have made use of the stores and restaurants. That also includes Poplar Creek Crossing, a 400,000-square-foot development that includes Target just north of the Prairie Creek Crossing. Most consumers don't know there are two separate developments next to each other. That development lost two tenants as Linens 'n Things closed in 2008 and Cost Plus World Market shuttered last year. Cost Plus could reopen this fall, as its representatives have applied for a liquor license with the village.

United Growth also is developing the 7-acre, five-building development in-between the Sears Centre and Cabela's outdoors store.