Cupertino Square Owners File for Bankrupcy
Foreclosure is not just for homeowners anymore. The owners of the former Vallco shopping mall have filed for bankrupcy to stave off a foreclosure sale scheduled for next week, and to protect other creditors owed money as a result of the ongoing renovation of the mall.
The mall will remain open for business while the current owners search for an investor or investors to resume the $190M project that was started two years ago.
Having visited the mall recently, it is a skeleton of what it once was, and silent construction areas tell the tale of the issues it faces. Although the ground floor areas still have bustling restaurants such as ToDai, Fresh Choice and Benihana to thank for some traffic, the upper floor has little visitors or activity. Everything inside Cupertino Square appears to be waiting for something or someone to move things forward.
An attorney in Los Angeles representing the mall told the SJ Mercury News that the project lender, Gramercy Capital, claimed the owners had defaulted on their loan – a claim the owners deny.
Given its location in affluent Cupertino – those who initiated and still carry hopes for this project view Cupertino Square as becoming a lifestyle center in the future, similar to Valley Fair and Santana Row.
