Kansas City’s Country Club Plaza owners default on $300M loan in new sign of distress
The companies that own Kansas City’s Country Club Plaza have defaulted on the nearly $300 million loan used to purchase the property, according to a filing with the U.S. Securities and Exchange Commission.
As of May 9, partners Macerich Co. and Taubman Centers reported they were in default of the $295.2 million loan provided by Chicago-based lender Nuveen, an investment company. It was made public in a quarterly report earlier this month.
In a statement Thursday evening, a Plaza spokesperson said there were active discussions with the lender “toward a mutually acceptable outcome.”
“In the meantime, we remain committed to the success of the Plaza and will continue to hold the Plaza’s beloved events, including the Art Fair and the Plaza Lights, while actively engaging with potential tenants to ensure the success of the district,” the statement says.
It marks another sign of distress for the Plaza, an iconic shopping district that has suffered setbacks in recent years, including vacant storefronts and loss of tenants.
Last year, fashion retailer Nordstrom Inc. bailed on its plan to put a store anchoring the west side of the outdoor mall. City leaders, including Mayor Quinton Lucas, have lamented the “gigantic dirt hole” in the ground after construction crews laid groundwork for the development.
The loan default was first reported Thursday by The Kansas City Business Journal. The Journal, citing multiple unnamed sources, says the lender has begun pitching the idea of selling the debt to local and national groups.
