Musa Tadros has agreed to sell the bankrupt Southside mall after riots following protests over the killing of George Floyd damaged the property.
Crown Commercial Real Estate and Development, a Tadros-led business, settled with its lenders on a $23 million defaulted loan related to Chatham Village Plaza, 8500-8700 South Cottage Grove Avenue, paying $20.5 million in Proceeds of sale to servicer representing investors with debt, Crain’s Report.
The business faced foreclosure proceedings in late 2021, prompting it to file for Chapter 11 bankruptcy five months later. Cook County Judge Janet Bell will rule on the bankruptcy case on May 31.
Tadros’ businesses “have withstood and overcome the unique challenges of COVID-19 and stay-at-home orders, as well as the unrest following the George Floyd protests that led to full-blown riots that included major damage to property, looting and In some places, for example, buildings were burned,” the document said.
About a year later, Chatham Village Square opened after repairs. Tadros and the lender, a trust company set up by Bank of America for investors owning commercial mortgage-backed securities, subsequently argued over an insurance proceeds of more than $3 million on the property, the outlet reported.
After the sale, Tadros and servicers representing the trust will be able to repay most of the $23.3 million owed to investors who own the debt.
Elsewhere in the Southside retail market, a landlord linked to Brazilian businessman Michael Klein is having trouble with a property called The Yards Plaza.The 261,000-square-foot mall in the Back of the Yards neighborhood has been hit by Foreclosure Actions Filed December 2021 After accumulating $25 million in debt, second lawsuit Presented by the Wilmington Trust as the loan guarantor, Klein and his company did not disclose the fact that the retail property was built on a landfill in 1990 and was experiencing related structural problems, including the building’s physical sinking.
— Quinn Donoghue
