Geneva Commons sold, at a loss

Geneva Commons shopping center has been sold again, for less than its owners paid, according to a report by Crain's Chicago Business.

The business publication reports that LaSalle Investment Management bought the 42-acre center for $120 million, $7 million less than it sold for in 2005.

Neither the sale, nor the price, surprised Geneva Mayor Kevin Burns.

“To us this is not news at all. It's just a regular everyday commercial land transaction,” he said.

Burns said sales at the mall are strong, and that he considers it to be in the “good hands” of a capable management team.

The mall has 438,000 square feet, and is near Randall and Bricher roads. Barnes and Noble bookstore and Crate and Barrel are two of its largest tenants.

Crain's reported that occupancy had dipped to 93 percent last year, down from a high of 98 percent. In comparison, Colliers International research firm reports that nationally, retail space had a 9.97 percent vacancy rate in the second quarter of 2013.

Burns said the mall's vacancy rate may be even lower, as Bar Louie opened in March in the former Red Star Tavern space.

The mall's owners had defaulted on $76 million on two loans in May. Crain's reported that a forbearance agreement was worked out with the lenders, to avoid foreclosure.

The mall opened in September 2002.

It is the largest property tax payer in the Geneva school district, and the third largest in Kane County, with a tax bill this year of $2.53 million, according to Kane County clerk and treasurer records.