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Bankruptcy stops condos' auction

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An Indianapolis developer’s last-minute bankruptcy filing halted the auction of a struggling downtown condominium project.

Close to 50 people gathered Feb. 7 to bid on eight units at the Chatham Kynett Court development at 716 N. East St. But an attorney for the property’s original owner showed up to notify the group that the owner had filed for Chapter 11 bankruptcy, stopping the sale, according to Jeff Donor, a vice president at Key Auctioneers.

Indianapolis-based developer SC Devcon brought the Chatham Kynett Court project to market in 2008, just before the real estate market soured. The units ranged from 1,400 square feet to 2,200 square feet and were offered for $249,000 to almost $400,000.

Three of the condos sold while the remaining eight sat empty for almost five years in various stages of completion. Key Auctioneers intended on Feb. 7 to sell those remaining units "as is."

SC Devcon affiliate Timberpace LLC owned the property.

Indiana Secretary of State records list the registered agent for both firms as Shawn Cannon. The firms have the same address in an office building at 110 E. Washington St. State records indicate both businesses have dissolved. Calls to the listed phone numbers for the companies went unanswered last week.

A Feb. 7 court filing lists the condo properties as belonging to another firm, Allpark LLC. Cannon is the managing member of Allpark.

In a court order, U.S. Bankruptcy Judge James Coachys granted a reprieve until March 11 for Cannon to file the initial Chapter 11 documents. His Feb. 7 filing was enough to stop the auction but not enough to proceed with a bankruptcy.

An attorney for Cannon declined to comment beyond what was in court records.

Donor said he has not heard from the owner since the auction was canceled.

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  • Thanks
    Ah - didn't realize that - thanks for the update.
  • Kynett Building
    Nope, I'm talking about the historic Kynett building that is part of the project but not specifically mentioned in this article. an earlier IBJ article mentions it: http://www.ibj.com/long-struggling-condo-development-going-to-auction/PARAMS/article/39440 Doner said one of the units is finished and three are drywalled and have mechanicals but need finishing. Of those four units, three are in a four-unit building that faces East Street and the other is in a three-unit building directly behind it. Both of those structures were built when the condos were developed. The other four units that are part of the auction package are yet to be built in the Kynett building, a historic brick structure that fronts Cleveland Street, an alley behind and parallel to East Street.
  • Huh?
    Tommy - historic building? The condos in this article were new construction (cheap, poorly done new construction). Are you talking about some other development?
    • Good points Joe
      You've some points Joe, they're definitely a difficult sell for the reasons you've listed, but if the market hadn't crashed, they'd have found the right buyer. I've walked the historic building as is, and there are two unfinished units that would be simply amazing.. 20 foot ceilings and cozy balconies overlooking a small courtyard. I hope this project is saved, because the potential is there. Trust me, you'd agree if you'd seen what I've seen.
      • The Design was problem
        It wasn't Downtown that was the problem, it was the layout, size, price, and location. They were aesthetically attractive, though. Many people moving Downtown are older empty-nesters who don't want too many steps. Younger buyers aren't in this price range.
        • No Mikey....
          ... You just have to value vibrant, urban living. I know many people who consider downtown real estate prices to be a bargain.
        • RipOff
          I love downtown living, but to be honest it's a complete ripoff. so overpriced! 1 bedrooms w/ less than 800sq ft going for like $200k, yea....you have to either be rich or an idiot.

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        1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

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