Owner of Faneuil Hall in financial trouble

Posted by Michael DiMella on Thu, Nov 13, 2008

General Growth Properties, the owner of Faneuil Hall Marketplace in Boston and the Natick Collection and the country's second largest mall owner, must pay off or refinance $1 billion (yes, with a "B") in debt due next month, as reported by the AP.  Given the current financial crisis, the markets are guessing a reworking is not possible, as their stock has gotten hammered down to $0.49 per share as of yesterday.  With another $3.07 billion coming due next year, I'm guessing a bankruptcy filing is in the near future.

GGP is also the developer of Nouvelle at Natick, a 215 unit luxury condo development located right by the Natick Collection.  There are only approximately 30 units sold so far, but the good news is that most of the work appears to be complete or close to complete, so we aren't talking about a gaping hole to be left if GGP goes into bankruptcy.  Its just a matter of who will buy the units, at what price, and how long it will take.  What will happen with the properties, both retail and condo, certainly remains unclear.  I just know that I'd be pretty nervous if I had bought a condo at Nouvelle and wondering what will become of the remaining 185 or so units left unsold.  And I'd be demanding answers.

Full story in The Boston Herald

Tags: development