Banks and Commercial Real Estate and Foreclosures and Banking & Finance and Retail Development and Mortgages and Broadbent Co. and Real Estate & Retail

Settlement allows Broadbent to keep downtown HQ

September 28, 2012

Indianapolis developer The Broadbent Co. will keep its downtown headquarters after settling a lawsuit with lenders that sought to foreclose on the building.

Huntington National Bank and PNC Bank filed their complaint in July 2011, charging that Broadbent defaulted on various construction loans and mortgages dating from February 2007.

In an e-mail to IBJ Friday morning, a Broadbent lawyer said the developer will continue to own its building at 117 E. Washington St. according to the terms of the agreement. He declined further comment.

Broadbent, a strip-center real estate specialist, borrowed more than $11 million to buy and renovate its headquarters. The company moved into the structure, formerly known as the Zipper Building, in October 2007 after a massive renovation of the then-50-year-old building.

But the company struggled during the commercial real estate downturn and faced a barrage of lawsuits as it attempted to reorganize certain properties under bankruptcy protection.

The disputes began in 2009 when Broadbent sued Huntington and PNC, charging they were wrongly attempting to restrict its access to a $50 million credit line.

Some of those suits involving Broadbent’s commercial properties were settled earlier this month.

One of the suits involved a $4 million Huntington loan tied to two Broadbent projects: the 130,181-square-foot Clearwater Crossing retail center near Keystone at the Crossing and the 103,934-square-foot North Willow Commons shopping center at West 86th Street and Ditch Road.

George P. Broadbent co-founded the real estate company formerly known as Skinner & Broadbent in 1972. The company operates 30 retail centers in the Indianapolis area.
 

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