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Centre Properties escapes foreclosure on 12 properties

July 30, 2013

Indianapolis development firm Centre Properties said Tuesday that it has renegotiated terms on mortgages for 12 Indianapolis-area commercial properties that had been threatened by foreclosure from as long ago as 2008.

Financial terms of the agreements, announced in a written statement, were not disclosed, but the mortgages involve tens of millions of dollars in debt on retail properties spread throughout the area.

Centre Properties said it reached terms with Bank of America, which filed in January to foreclose on three of the properties—the 30,200-square-foot RiverPlace Shops in Fishers, the 51,600-square-foot Greenwood Crossing in Greenwood, and the 61,000-square-foot Raceway Market Shops on Rockville Road—over more than $11 million in debt.

Centre Properties put the three strip centers into Chapter 11 bankruptcy in March, prompting Bank of America to reach a settlement agreement with the developer in July.

The names of the other properties were not disclosed and a company representative was not immediately available for comment Tuesday morning, but IBJ has reported on at least two other foreclosure suits involving Centre Properties since late 2011.

Citigroup Mortgage Lending Trust, or CMLT, filed a $7.2 million foreclosure suit in July 2012 over the 52,400-square-foot Pyramid Place Shoppes at the intersection of West 86th Street and Michigan Road.

In November 2011, 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.

Centre Properties said Tuesday that it faces foreclosure on only one more property, Southport Centre at 9333 N. Meridian St., but "anticipates successful negotiations will be finalized shortly."

The developer said it is starting development on two new retail centers this year in Indianapolis and still owns 40 properties in central Indiana.

Centre said it never missed interest and principal payments on any of the mortgages, but was unable to pay off the loans immediately when lenders sought lump-sum payoffs.
 

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