News
11/22/11
Before the rumor mill starts, I wanted to take this opportunity to comment on a recent item making news in Kansas City, Mo., that involves RED Development.
RED Development manages, and is a 5 percent owner in The Legends Outlets in Kansas City. It has recently been reported that the principal loan for the property is in default. While this is correct, I would like to clarify that the property is not in distress; it is 95 percent leased; all retailers are open for business; and this recent event will in no way impact sales at the shopping center.
The fact is, the world of commercial real estate financing has changed significantly in the past few years, and it is not uncommon for banks and owners to place a loan in default while they are renegotiating financial terms. Retailers and shopping centers across the country have “re-tooled” their operating costs and restructured financial agreements with lenders to continue to operate successfully within the new economic environment.
The Legends Outlets in Kansas City recently has successfully begun to reposition itself as a premier brand outlet location. The Legends ownership is optimistic that the continuing negotiations with the lender will end positively for the development and its retailers, and allow for the completion of the development's repositioning.
We are bringing this issue to your attention because we felt it was important to provide additional clarity regarding the situation and the circumstances surrounding it. We are obviously very aware of the current market conditions and what it takes to finance and operate a shopping center in today's world. RED Development is proud to say that we are weathering the economic storm and we, our projects and the communities where we operate are stronger today as a result. Our continued interest in developing Eagle River Station speaks volumes about our faith in this project and its potential for success for us and the Town of Eagle.
Sincerely,
Before the rumor mill starts, I wanted to take this opportunity to comment on a recent item making news in Kansas City, Mo., that involves RED Development.
RED Development manages, and is a 5 percent owner in The Legends Outlets in Kansas City. It has recently been reported that the principal loan for the property is in default. While this is correct, I would like to clarify that the property is not in distress; it is 95 percent leased; all retailers are open for business; and this recent event will in no way impact sales at the shopping center.
The fact is, the world of commercial real estate financing has changed significantly in the past few years, and it is not uncommon for banks and owners to place a loan in default while they are renegotiating financial terms. Retailers and shopping centers across the country have “re-tooled” their operating costs and restructured financial agreements with lenders to continue to operate successfully within the new economic environment.
The Legends Outlets in Kansas City recently has successfully begun to reposition itself as a premier brand outlet location. The Legends ownership is optimistic that the continuing negotiations with the lender will end positively for the development and its retailers, and allow for the completion of the development's repositioning.
We are bringing this issue to your attention because we felt it was important to provide additional clarity regarding the situation and the circumstances surrounding it. We are obviously very aware of the current market conditions and what it takes to finance and operate a shopping center in today's world. RED Development is proud to say that we are weathering the economic storm and we, our projects and the communities where we operate are stronger today as a result. Our continued interest in developing Eagle River Station speaks volumes about our faith in this project and its potential for success for us and the Town of Eagle.
Sincerely,
