Just four years after taking out a more than $100-million loan to develop a major piece of Myrtle Beach real estate, the mortgage is not being paid.
That's according to JPMorgan Chase Bank, who has filed suit to foreclose on the group that has headed up development at the Market Common.
The group behind the Market Common project, LUK-MB1, LLC, faces foreclosure, but for store owners, it seems to be business as usual.
"It's not something that reaches the day to day, really. Of the people that are coming to shop, it's not going to affect them at all," said Sue Ward, a real estate broker who teaches yoga in her spare time at Yoga in Common at the Market Common.
Jonathan Vereen, owner of the Xtreme Surf and Skateboarding Company at Market Common, agreed.
"I really don't see this affecting me at all. I really don't. It's just so far up the chain, that I really don't think it'll affect us at all," he said.
Vereen's store has been a part of the Market Common since the mixed-use development, that includes retail and residential properties, first opened in 2008. He says business is good and will only get better.
"When the economy gets turned back around and everything gets back in gear, this is really going to be the center point for Myrtle Beach," said Vereen.
That was the hope when the LLC undertook the development in 2006, borrowing $102.6 million from JPMorgan Chase. But the bank says the LLC only paid $2.1 million in return, and now JP Morgan is asking for the rest of the money, plus interest. That total comes to $105.8 million.
Even with foreclosure looming, there's no panic among business owners.
"The bricks and mortar will be here, stores will be here, the clients will be here. We just may see a little change. I don't think that it's something that we have to panic about," said Ward.
She says there are too many successful operations here for the entire development to fail.
"We have a very successful movie theater here. We have successful restaurants that are busy all the time," said Ward. "This is a great place for business and I think as more people get to know about it, it will get better and better. It's still new. We're still very much in our infancy. We'll grow up."
According to The Market Common's General Manager, Sue Bonin, the court appointed a Chicago-based firm as the new managing company.
McCaffery Interests had been the managing firm. Bonin told NewsChannel 15 that the local management team will stay intact.
