The Business Journal says the foreclosure targets the so-called "High Street" companies of the 5.5-million-square-foot project's first phase at Loop 101 and Tatum Boulevard. The entire development is a joint venture between the Related Cos. LP, Thomas J. Klutznick Co. and JER Real Estate Partners.
The first phase broke ground in 2006 when Nordstrom agreed to sign as the project's anchor tenant. However, the Business Journal says the crumbling economy forced Nordstrom to pull out of the project. The two other first-phase retailers, Macy's and Bloomingdales, have pushed their openings back until 2010.
The article says CityNorth suffered another setback in 2009 when the Goldwater Institute tried to overturn the $97.4 million in tax incentives awarded by the city of Phoenix to the project's developers. The suit is awaiting decision from the Arizona Supreme Court.
The developers, however, remain optimistic. "The foreclosure will result in a restructuring of equity interests in the High Street portion of the project to enable fresh capital to be injected," said Klutznick Co. principal John Klutznick in a statement. "Day-to-day operations will continue as usual and Klutznick Company remains committed to the success of High Street." Klutznick went on to say his company was working on future phases of the project.
Read more about the foreclosure here.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
