Two Indianapolis-area retail centers are the target of a $16.8 million foreclosure complaint listing several local properties owned by a Greenwood developer.
Merrill Lynch Mortgage Trust filed suit against the Presnell Companies on Aug. 16 in Marion Superior Court and is asking it to appoint a receiver to manage the properties during foreclosure proceedings.
A hearing on Merrill Lynch’s receivership motion is set for 10 a.m. Aug. 29.
The retail properties include County Line Corners at 1285 N. State Road 135 in Greenwood and The Center at Shiloh Crossing at 10224 U.S. 36 in Avon. The Greensburg Crossing Shopping Center in Greensburg, about 50 miles southeast of Indianapolis, also is listed.
Other properties listed in the suit are the Presnell Companies office building at 300 S. Madison Ave. in Greenwood, the McFarland Building at 8028 S. Emerson Ave. in Indianapolis, and a White Castle restaurant at 1414 Thompson Road, also in Indianapolis.
New York-based Merrill Lynch said in its complaint that the Presnell Companies owes it a total of $16.8 million, including nearly $13.4 million in principal on a $14.3 million loan the developer received from LaSalle Bank in April 2005.
Merrill Lynch, which took possession of the loan in April 2011, is asking that the properties be sold at a sheriff’s sale to help satisfy the debt.
Kevin Presnell, owner of the Presnell Companies, told IBJ he is hoping to negotiate a deal to retain possession of the properties. He said the properties aren’t performing well and he acknowledged that he quit paying on the loan after accusing Merrill Lynch of overcharging him several thousand dollars on property-tax payments.