Bridgeland developer files for bankruptcy

New development nearly halted

Steve Hawley, Apr 16, 09.

General Growth Properties, Inc., which owns all or part of five Houston-area malls, as well as the proposed Bridgeland development, filed for Chapter 11 bankruptcy today, according to the Houston Chronicle. General Growth is the second-largest mall operator in the country, and the New York Times called its bankruptcy “one of the biggest commercial real estate collapses in United States history.”

The Chronicle states:

The move by the Chicago-based company had been widely anticipated since the fall, when the company warned it might have to seek bankruptcy protection if it didn’t get lenders to rework its debt terms. Efforts to negotiate with its unsecured and secured creditors ultimately fell short late last month.

It notes, “Chapter 11 protection typically allows a company to hold off creditors and operate as normal while it develops a financial reorganization plan.”

While General Growth said its malls will not be affected, it is unclear what effect the filing might have on the company’s planned developments, including Bridgeland. According to the New York Times article, “General Growth’s reorganization efforts will likely focus on selling off properties. It has already suspended its stock dividend, cut its workforce by 20 percent and stopped virtually all new development.”

In March, Peter Houghton, General Growth’s Vice President for Master-Planned Communities, cited the 11,400-acre Bridgeland development as one of the reasons to build Segment E of the Grand Parkway, telling the Harris County Commissioners Court, “We need this road to continue the build-out of Bridgeland.”

Comments

.(JavaScript must be enabled to view this email address) said:

“We need this road to continue the build-out of Bridgeland… {so I don’t get fired}”

Posted on Apr 16, 09 at 6:58 pm

.(JavaScript must be enabled to view this email address) said:

I live in Bridgelands. I have since December of 07. Why was I not told this might happen? I was sold on the idea of having a mall in my neighborhood like the Woodlands. Now I am pissed and will be talking to my lawyer.

Posted on May 04, 09 at 8:00 pm

.(JavaScript must be enabled to view this email address) said:

Real estate people are all about sales. They are all about the handshake, the smile, and the sunshine pump. They’ll tell you business has never been better even while they are emptying their desks into cardboard boxes. That’s what they get paid to do. Why should be expect any different of them?

Posted on May 04, 09 at 8:04 pm

.(JavaScript must be enabled to view this email address) said:

I was considering buying a lot or home in Bridgeland but news of the bankruptcy and the possibility of not having a mall has changed my mind. What will become of this community?

Posted on Aug 09, 09 at 11:06 am

Bart Smith said:

I am confused about a letter I received regarding the bankruptcy of General Growth Properties? I recently received a letter naming myself as a debtor to General Growth Properties, INC regarding their bankruptcy (Chapter 11 Case # 09-11977) and information on how I need to provide proof of my claim.

I did some googling and turn up information on the company but I have no idea what this letter is about; and there is no contact information on it. I have received a few of these letter over the last several months and I don’t know what to do? Any sound advice or information would be appreciated!
.

Posted on Aug 30, 11 at 3:27 am

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