Algonquin Commons in Trouble

December 17, 2009 3:01 PM 

A Crain’s article by Alby Gallun reported today that the 565,000 SF lifestyle center known by all as Algonquin Commons is “no longer generating enough cash flow to cover its loan payments.” This is primarily due to the loss of their second and third largest tenants, Wickes Furniture and Circuit City, liquidating after filing a Chapter 11 protection last year. Oakbrook based Inland Real Estate Comp is the owner of Algonquin Commons which is a joint venture. When they bought it in 2006, occupancy was at 99% whereas it has dropped to 91% at the end of September. On the other end of this joint venture is the New York Teachers Retirement System which paid $154 million for the Commons in February of 2006. That was no doubt a nice commision for Inland at the time. I doubt if the teachers are too happy with this turn of events.