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COVID-19 aftereffects continue to drag on Chicago commercial real estate

COVID-19 aftereffects continue to drag on Chicago commercial real estate
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Gurnee Mills, Yorktown Center malls buy more time with lenders

The agreement, reached Dec. 31, could give Simon, the country’s biggest shopping mall owner, more time to turn around Gurnee Mills, the area’s third-biggest mall, with about 1.9 million square feet. Bloomberg did not provide terms of the deal. Under a forbearance agreement, lenders agree not to take legal action, like filing a foreclosure suit, against a property owner that has defaulted on a loan, and the borrower often agrees to some kind of payment plan in return. In west suburban Lombard, the owner of Yorktown Center has worked out an extension to pay off about $107 million in mortgage debt on the 1.4 million-square-foot mall, according to Bloomberg data.

Simon completes Taubman merger

by: Alex Brown, Inside INdiana Business Posted: Dec 29, 2020 / 11:50 AM EST INDIANAPOLIS (Inside INdiana Business) Indianapolis-based Simon Property Group Inc. (NYSE: SPG) has completed its $3.4 billion merger with Taubman Centers Inc. (NYSE: TCO) in Michigan. The deal, which was originally announced in February, is the conclusion of a contentious process, which at one point included Simon terminating the merger agreement.  As a result of the merger, Simon now owns an 80% interest in The Taubman Realty Group Limited Partnership, with the Taubman family owning the remaining 20%.  “We are very pleased to complete this transaction and to add some of the world’s premier retail assets to our portfolio,” David Simon, chief executive officer of Simon Property Group, said in a news release. “This investment will enhance the ability of TRG to establish innovative retail environments for consumers and to create new job prospects for the communities in which it operates.”

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