Problems with another Las Vegas commercial real estate loan resulted in yet another bankruptcy filing on Wednesday.
Sahara Towne Square LLC, owner of a shopping center at Sahara Avenue and Maryland Parkway, filed for Chapter 11 bankruptcy protection and reorganization.
The shopping center at 2520 and 2650 S. Maryland Parkway is anchored by a Smith’s grocery store. The center is owned by a California partnership called Desert Lakes Apartments.
Tenants there include All Discount Vacuum & Sewing, Cemondel’s Bakery Shop, China Star, Jack In The Box, Koster Finance, Los Toritos Grill, Mail Boxes Etc., Metro PCS, Nail Craze, Beauty Supply Warehouse, Office 7 Lounge, Super Cuts, the Original Thai BBQ and some doctors’ and dentists’ offices.
The bankruptcy filing said the center, which generated income of nearly $1.6 million last year, has assets valued on paper at $13.8 million and liabilities of $9.6 million.
The timing of the bankruptcy suggested it was filed to block a hearing planned for Thursday in a state court, Clark County District Court.
U.S. Bank, which is trying to foreclose on the shopping center, filed suit on Feb. 24 in state court against Sahara Towne Square.
During Thursday’s hearing, it planned to ask the court to appoint a receiver to take over and supervise the property — but that hearing will likely be called off because of the bankruptcy filing.
U.S. Bank is owed nearly $9.6 million by Sahara Towne Square, the bankruptcy filing says.
If a compromise can’t be reached in Bankruptcy Court, U.S. Bank can petition the court for permission to complete its foreclosure.
Wednesday’s bankruptcy filing is just the latest in a series of debt defaults to hit the Las Vegas retail sector during the recession.
During the fourth quarter, retail vacancies locally were running at 10.6 percent, according to one analysis — more than triple the 3.2 percent rate during the boom year of 2006.