Commercial Real Estate and Foreclosures and Shopping Centers and Property Management and Banking & Finance and Development/Redevelopment and Mortgages and Retail and Real Estate & Retail

Receiver appointed in $16.8M foreclosure suit

August 29, 2011

A Marion Superior Court judge on Monday morning appointed a receiver to manage several Indianapolis-area properties, including two retail centers, that are part of a $16.8 million foreclosure complaint.

Judge Theodore Sosin granted a request by lender Merrill Lynch Mortgage Trust and appointed Finsilver/Friedman Management Corp. of Farmington Hills, Mich., to oversee the properties owned by Greenwood developer Presnell Cos.

Merrill Lynch Mortgage Trust filed suit on Aug. 16.

The developer’s retail properties that are targeted for foreclosure 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 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 Presnell 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 Cos., told IBJ last week he had been hoping to negotiate a deal to retain possession of the properties. He said the properties aren’t performing well and acknowledged that he quit paying on the loan after accusing Merrill Lynch of overcharging him several thousand dollars on property-tax payments.
 

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