Indianapolis-based developer Centre Properties is the target of another foreclosure suit, this one involving Pyramid Place Shoppes, a retail center on the northwest side.
Citigroup Mortgage Lending Trust, or CMLT, filed the complaint in Marion Superior Court late last month and is seeking $7.2 million. A hearing has been set for Aug. 16 to appoint a receiver to manage the property until it is sold.
The 52,400-square-foot Pyramid Place Shoppes is at the busy intersection of West 86th Street and Michigan Road. Its tenants include multiple eateries, including Outback Steakhouse, Noodles & Co., Firehouse Subs, Skyline Chili and Qdoba.
The suit said the $7 million loan to Centre Properties’ subsidiary Pyramid Place Shops LLC originated with LaSalle Bank in August 2007 and was assigned to Bank of America the following year. The mortgage eventually ended up with CMLT.
CMLT sent a default notice to Centre Properties in April this year, seeking $7.2 million, including interest on the loan.
Centre Properties was founded in 1985 by Craig W. Johnson and James F. Singleton. Neither returned phone calls seeking comment on the foreclosure filing. Their company has developed more than 2.2 million square feet of retail space in the Indianapolis area, according to its website.
But Centre Properties has encountered problems with lenders. In November, U.S. Bank filed a foreclosure suit in Marion Superior Court against subsidiary Centre East LLC, seeking $43.3 million stemming from a 2005 loan.
The three properties involved in that suit were the 130,000-square-foot Centre North Shops at 8510 E. 96th St. in Fishers, the 17,900-square-foot Southport Shops at 7225 U.S. 31 South, and the 13,300-square-foot German Church Shops at 10935 E. Washington St.
The properties are being sold at a sheriff sale, according to court documents.
Centre Properties is among a long list of retail developers hit with foreclosure lawsuits in the aftermath of the 2008 financial crisis.
“It is very difficult to get refinancing on multi-tenant shopping centers,” said Eric Hillenbrand, an independent commercial real estate broker. “The terms and conditions are very different than they were when a loan might have originated.”
He said Centre Properties’ Pyramid Place Shops is well-occupied and in an attractive location near large office parks and bigger retailers, including Walmart and Sam's Club.