A high-profile shopping center along East 86th Street in Nora could soon be operating in receivership after the owner of the property defaulted on an $8.4 million loan.
The nearly 94,000-square-foot Nora Corners, anchored by a 49,000-square-foot Marsh Supermarkets store, is owned by Nora Improvements LLC, an entity of Tarrytown, New York-based DLC Management Corp.
U.S. Bank filed suit Dec. 9 in Marion Superior Court against DLC and is seeking to foreclose on the shopping center. A hearing to appoint a receiver to manage the property during the foreclosure process has been set for Jan. 16, according to court documents.
DLC officials couldn't immediately be reached for comment Friday morning.
Nora Corners is located between Westfield Boulevard and the Monon Trail on the north side of East 86th Street. Besides Marsh, tenants include Subway, Tuchman Cleaners, Kitchens By Design and Goodwill.
The shopping center is almost fully occupied, save for a 4,000-square-foot vacancy. But it's beginning to show its age, said Bill French, a retail broker at the Cassidy Turley real estate firm. Built in the 1960s, the strip center was redeveloped in 1986 and could use another updating, he said.
“The configuration for small-shop tenants is challenging, as the visibility isn’t as great as it once was,” he said.
Three outlots fronting the center house Chipotle and Hardees restaurants, in addition to a Taylor’s Pub.
The center also faces increased competition from the more modern and Target-anchored Nora Plaza just to the west.
In addition, Nora Plaza Shops and the newly renovated Nora Shops West, occupied by Starbucks, North End Barbecue and Artisano’s, are fully occupied, said Wes Podell, vice president of leasing and development for owner PK Partners.
“We continue to hear from tenants looking for quality space,” he said.
DLC received its $8.4 million loan in August 2002, and defaulted in October 2012, according to court documents. U.S. Bank claims DLC owes a balance of nearly $6.9 million and more than $1 million in interest and charges, bringing the total amount to $8 million.
DLC’s portfolio consists of 116 open-air shopping centers, totaling more than 19.6 million square feet of retail space in 29 states.