How has the recession impacted Palladio and its tenants?

The recession of the U.S. economy has created a crisis in consumer confidence and has severely impacted the ability of retail and restaurant businesses to grow, expand or diversify. Retailers and Restaurateurs alike are taking a “wait and see” attitude and many are delaying any plans for new unit, or store expansions, until there is clear indication that consumer confidence and the economy will turn positive. Economists predict; “a bottom late in 2009 and a slow recovery through the subsequent twenty four months”. The Owner / Developer of the Palladio Lifestyle Center, Elliott Homes, therefore plans to phase the openings through late 2011 commensurate with the retailers adjusted timelines for expansion to new projects. Palladio’s first of several phases of completion is expected December 11, 2009 with a 16 Screen state of the art Theatre complex. The largest solar power system on the roof of a movie theatre in the world becomes operational in early 2010.

Who is General Growth Properties, GGP and what is the extent of their involvement with the Palladio project?

Elliott Homes is the sole owner of Broadstone Land LLC, the developer, builder and manager of Palladio at Broadstone lifestyle center, in Folsom California. General Growth Properties (GGP) has no ownership interest in the project. GGP is currently retained solely as a leasing broker agent.

Is GGP in Bankruptcy?

GGP’s third party leasing division is not in Bankruptcy and therefore has no negative effect on the completion of Palladio. GGP is currently retained solely as a leasing broker agent to acquire retail and restaurant leases for Palladio. Certain subsidiaries, including GGP’s third party management business conducted by General Growth Management, Inc. and GGP’s joint ventures have not filed for protection.

Click on the link to GGP for restructuring information:

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