News - Kane County

Algonquin Commons facing foreclosure lawsuit

ALGONQUIN – Algonquin Commons, one of the commercial jewels along the busy Randall Road retail corridor, is facing a $110 million foreclosure lawsuit.

U.S. Bank National Association filed a foreclosure suit in Kane County Circuit Court earlier this month against Inland Real Estate Corp.’s Algonquin Commons property, according to court records and Security and Exchange Commission filings. Inland Real Estate stopped making mortgage payments on the 563,704-square-foot outdoor shopping center at 1900 S. Randall Road last June in an effort to convince its lender to restructure loan payments.

In response, U.S. Bank filed for foreclosure. Crain’s Chicago Business called it “one of the largest foreclosure cases filed in the Chicago area since the crash.”

“The property has not been generating sufficient cash flow to pay both principal and interest on the outstanding mortgage,” the company said in an SEC filing this month.

It cited vacancies and lease provisions that allowed some tenants to reduce their monthly rents.