Ward Parkway Shopping Center is going into foreclosure after one of its investors couldn't pay the bills.
It's scheduled to be sold on the steps of the Jackson County courthouse March 26.
A lot has changed in the last several years. New businesses like Old Navy and Staples recently went in. Dillards turned into a outlet center and Steve and Barry's recently shut its doors.
Coventry Real Estate and Developers Diversified bought Ward Parkway Shopping Center in 2003. And, helped finance the mall's rebirth. But, the bank says Coventry failed to pay down its loan.
Developers Diversified says the company has "fulfilled our obligation and we have no obligation to fulfill our partner's obligation."
However, the company will continue to manage the mall, and shoppers shouldn't notice any changes.
"They did a great job converting its use and breathing life back into it," said Walt Clements Dir. of the Lewis White Real Estate Center.
Clements at the UMKC Block School of Business said the mall's life span may be limited no matter what. Newer shopping centers further south will continue to take away shoppers.
"So, it's likely the mall would have struggled anyway. The economic situation just perpetuated it and made it worse so this was the straw that broke this particular camels back," said Clements.
But, the bigger question is whether this is just another sign of the times? Some say the commercial real estate market will be the next market to collapse.
"Typically real estate follows the economy. So, whether or not commercial real estate is the next to fall depends on the speed of recovery of the economy number one," said Clements.
The Atlanta Federal Reserve President says $400 billion in commercial mortgage backed securities are coming due in 2009. But, the problem is banks aren't financing new loans.
Clements says it's true we needed more regulation. But, too much is stifling the markets.
"I'm concerned the government has done another knee-jerk reaction and is coming down too hard on the bankers today," said Clements.
Clements said this is the most stable area in the country, and we didn't over-build like so many other parts of the country. So overall, he believes we can weather this next storm a little better than others.
It's scheduled to be sold on the steps of the Jackson County courthouse March 26.
A lot has changed in the last several years. New businesses like Old Navy and Staples recently went in. Dillards turned into a outlet center and Steve and Barry's recently shut its doors.
Coventry Real Estate and Developers Diversified bought Ward Parkway Shopping Center in 2003. And, helped finance the mall's rebirth. But, the bank says Coventry failed to pay down its loan.
Developers Diversified says the company has "fulfilled our obligation and we have no obligation to fulfill our partner's obligation."
However, the company will continue to manage the mall, and shoppers shouldn't notice any changes.
"They did a great job converting its use and breathing life back into it," said Walt Clements Dir. of the Lewis White Real Estate Center.
Clements at the UMKC Block School of Business said the mall's life span may be limited no matter what. Newer shopping centers further south will continue to take away shoppers.
"So, it's likely the mall would have struggled anyway. The economic situation just perpetuated it and made it worse so this was the straw that broke this particular camels back," said Clements.
But, the bigger question is whether this is just another sign of the times? Some say the commercial real estate market will be the next market to collapse.
"Typically real estate follows the economy. So, whether or not commercial real estate is the next to fall depends on the speed of recovery of the economy number one," said Clements.
The Atlanta Federal Reserve President says $400 billion in commercial mortgage backed securities are coming due in 2009. But, the problem is banks aren't financing new loans.
Clements says it's true we needed more regulation. But, too much is stifling the markets.
"I'm concerned the government has done another knee-jerk reaction and is coming down too hard on the bankers today," said Clements.
Clements said this is the most stable area in the country, and we didn't over-build like so many other parts of the country. So overall, he believes we can weather this next storm a little better than others.
