chatham village

More

Chatham shopping center damaged in George Floyd protests being sold

  • May 16, 2023

The shopping center at 8500-8700 S. Cottage Grove Ave. suffered a major setback from the mayhem that followed the murder of George Floyd by a Minneapolis police officer in late May 2020. Chatham Village Square was “one of the epicenters of the most destructive forces related to the protests,” according to a court filing.

The Tadros ownership venture “has endured and overcome the unique challenges presented by COVID 19 and the stay-home orders and the unrest following the George Floyd protests, which sparked instances of full-blown riots which included significant damage to property, looting and in some instances the burning of buildings,” the filing says.

About a year later, after fixing up and re-opening the shopping center, Tadros and his lender squabbled over the use of roughly $3 million in insurance proceeds for the property, according to the filing. The lender, a Bank of America trust for investors that own commercial mortgage-backed securities secured by the debt on the shopping center, then filed to foreclose in late November 2021.

Now, after a year in bankruptcy, Tadros and a loan servicer representing the trust are moving forward with a settlement that would allow Tadros to pay off most, but not all, of the $23.3 million owed to the CMBS investors. The Tadros venture plans to sell the shopping center for $20.5 million and transfer the cash to the trust, which has agreed to accept less than the full amount of its claim, according to court documents.

Tadros did not return phone calls and his attorney declined to comment. An attorney representing the lender also declined to comment.

What’s unusual about the arrangement is that the Tadros venture would sell the shopping center to a company led by Nicholas Tadros, the son of Musa Tadros. The younger Tadros did not return phone

Read the rest