General Growth Properties, Inc. (GGP) has filed for Chapter 11 federal bankruptcy protection to reorganize, making it the largest real estate bankruptcy in U.S. history.

One April 6, 2009 (just 10 days ago), we highlighted the fate of GGP. We posed the question: How close does, or will, commercial real estate mirror the banking and financial industry? 

Today we received our answer …. BANKRUPTCY. Will this seismic event rock the CRE market??

• General Growth listed $29.5 billion in total assets and about $27.3 billion of debts in its bankruptcy petition.
• Chicago-based General Growth (NYSE: GGP) sought bankruptcy protection only after being unable to refinance or extend maturing debt.
• The company had been struggling to pay off debt it owed since acquiring Columbia’s Rouse Co. in 2004 for $12.6 billion.
• General Growth owns or manages over 200 malls, several master planned communities and a collection of commercial office buildings.
• It also owns 264 acres in Columbia and recently submitted a 30-year plan to revamp the planned community’s town center.

Tags: bankruptcy, General Growth Properties

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