Elk Grove Promenade has sat collecting weeds off Highway 99 over the last few years, a seemingly permanent reminder of the dreams of prosperity that the recession shattered a few years ago. Sacramento-area residents would never know that a couple of gigantic property firms are vying to takeover the property.
General Growth Properties Inc. developed Elk Grove Promenade intending to turn it into a destination shopping attraction for the south-of-Sacramento area. Instead, midway through development, General Growth filed bankruptcy and production stalled. A fence was built around the property and the partially-built mall was frozen in 2008.
Two large real estate firms, Brookfield from Canada and Simon Property Group from Indianapolis, have submitted multi-billion dollar bids to buy General Growth and its portfolio, including the Elk Grove Promenade. General Growth is in bankruptcy court in Manhattan, and the bankruptcy judge will have final say on which bid General Growth will accept.
A new owner could sit on the Elk Grove property until the market makes a large mall viable. Or, it could redevelop the property as a big-box center or an outlet mall. Any new work on the Promenade will likely only come with an improvement in the economy. Thus, the Promenade remains a large symbol of the Great Recession.
