Kansas City Business Journal by Paul Koepp, Reporter
A federal judge appointed a receiver Tuesday for Legends Outlets Kansas City.In its proposal to act as receiver for the Legends, Los Angeles-based E3 Realty Advisors Inc. said it would explore repositioning or selling the shopping district. E3 concluded the sale of a regional mall in Cincinnati in March.
E3 recommended retaining Michigan-based Horizon Group Properties as property manager and leasing broker, replacing RED Development LLC of Kansas City.
U.S. Bank , the trustee for a group of securitized loans that includes a $137 million construction loan for the Legends, filed a lawsuit in the U.S. District of Kansas on May 18 seeking to foreclose. The bank claims that Legends owners owe $179.4 million and that the property is worth between $95 million and $112.5 million. RED has a 5 percent stake in the shopping center.
Horizon manages outlet malls in the Midwest and South along with Tennessee-based CBL & Associates Properties. Horizon and CBL opened the 83-store, fully-leased Outlet Shoppes at Oklahoma City in August 2011.
Another potential manager, E3 said, would be Chicago-based Urban Retail Properties, which oversees regional malls in Manhattan and Salina.
In a hearing Tuesday, Legends attorney Jeffrey Dutson of King & Spalding LLP in Atlanta said the mall agreed to E3’s appointment because its loan documents called for a receiver in the event of a default. The Legends stopped making loan payments in October.
Kansas City Shopping Center:
ReplyDeleteHawthorne Plaza, Kansas City's premier boutique shopping center specializes in personal and home fashion. For nearly two decades, Hawthorne Plaza's collection of distinctive, fashion forward boutiques has offered discerning shoppers a reprieve from the ordinary shopping experience.