Streets at Southpoint in trouble?

November 12, 2008 5:57:09 PM PST
Owners of the Streets at Southpoint say the economic squeeze will not force them to close their doors.It has been announced Southpoint's owners may file for bankruptcy. However, the shopping continues as usual at the Streets at Southpoint.

And real estate pros call Southpoint a trophy property, with only a five percent vacancy rate.

But Southpoint's parent company, General Growth Properties, owns over 200 malls around America and it's buried in debt.

General growth owes over a billion dollars by the end of the year and the Chicago based company says it cannot pay.

In this credit squeeze they cannot get a loan to refinance the debt.

It's a problem similar to homeowners facing foreclosure.

The company's stock is now trading for pennies. General growth says it may go bankrupt. But most believe the mall is too valuable to close.

The shopping will continue, even if Southpoint's owner has maxed out its own credit card and is about to run out of cash.


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