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Owner of city apartment complex files Chapter 11

October 26, 2010

The owner of a 518-unit apartment complex in northwest Indianapolis is seeking Chapter 11 bankruptcy protection as it disputes the amount of its mortgage debt with its lender.

The owner of Creekwood Apartments at 2100 Westlane Road owes U.S. Bank, a division of Minneapolis-based U.S. Bancorp,  $16.6 million, but that amount is in dispute, according to a filing Monday in U.S. Bankruptcy Court in Indianapolis.

The owner of the property is MREF III Property II LLC, an entity owned by Denise Vaknin and managed by Abraham Vaknin. Their attorney, Deborah Caruso of Indianapolis-based Dale & Eke, could not be reached for comment Tuesday morning.

According to the court filing, 77 percent of Creekwood's units are occupied, generating monthly income of $203,886.

The debtor is in the process of appraising the real estate and estimates its value at between $8 million and $13 million.

Creekwood was acquired by MREF III Property II in February 2009 by The Micheson Organization, based in St. Louis, one month after a fire damaged 20 units.

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