Commercial Real Estate and Foreclosures and Banks and Office Complexes and Banking & Finance and Mortgages and Real Estate & Retail

Northeast-side office building target of foreclosure

March 8, 2011

The owners of a nearly 40,000-square-foot office building on Indianapolis’ northeast side are facing foreclosure on a $3 million bank note.

Bank of America, as trustee for original lender Wells Fargo Bank, filed a lawsuit on March 2 in Marion Superior Court, seeking foreclosure and the appointment of a receiver for the property at 6801 Lake Plaza Drive.

The building, called Lake Plaza Office Park, is owned by Wisconsin-based Lake Plaza LLC and LeBaron Investments Lake Park LLC.

Both entered into a loan agreement with Wells Fargo on May 2, 2007, in the amount of $3 million. Including interest on the loan, the lender claims it is owed $3.1 million.

As of February, Lake Plaza and LeBaron Investments had missed nine consecutive monthly loan payments, according to court documents.

Charlotte, N.C.-based Bank of America is requesting the property, near East 71st Street and Binford Boulevard, be sold at a sheriff’s sale.

The office complex was built in 1978 and renovated in 2006. With more than 9,000 square feet available for lease, it is roughly 77-percent occupied, according to commercial listings.

Rental rates range from $10 to $13.50 per square foot.

The most recent appraisal valued the property at $2.8 million.
 

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