Owner of University Square Shopping Center Files Bankruptcy in Bid to Clear Path for Redevelopment

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The owner of University Square, a lender-controlled shopping center in University Heights, has filed bankruptcy in hopes of wiping out cumbersome restrictions on the property and clearing a path for redevelopment.

University Square Real Estate Holdings LLC filed a Chapter 11 bankruptcy petition on Monday, July 10, in the U.S. Bankruptcy Court for the Northern District of Ohio. The company, created to hold real estate on behalf of bondholders who took control of the property in 2015, is out of cash.

Through a bankruptcy reorganization, the trustee for the bondholders hopes to swiftly sell off University Square — and to get around a complicated agreement that prohibits a partial residential makeover.

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