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Broadbent in mortgage dispute involving retail center

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The owner of Castleton Place, a shopping center in one of the city’s busiest retail areas, is the target of a $5 million foreclosure lawsuit by a lender that seeks to have the property placed in receivership.

Castleton Place LP and George P. Broadbent, chief of Indianapolis-based The Broadbent Co., are being sued by Monty Titling Trust 2, or MTT, a successor to original mortgage lender Marshall & Ilsley Bank (now BMO Harris Bank).

MTT wants to foreclose on the building and asked the court to appoint a receiver to manage the property until it can be sold at a sheriff’s sale.

George Broadbent did not return a phone message seeking comment. A hearing on the case is set for Tuesday.

According to the suit, filed Feb. 28, Broadbent took out a $6.2 million loan on Castleton Place from M&I in June 2008. MTT was assigned the loan in June 2013 after M&I merged with BMO Harris.

MTT’s suit claims Broadbent is in default on the loan and owes the lender a principal of $4.8 million, plus nearly $225,000 in unpaid interest and late charges of more than $3,500.

The 47,108-square-foot Castleton Place, 5864 E. 82nd St., is in a Castleton Square Mall outlot and anchored by Men’s Wearhouse. Other tenants include Nature’s Pharm, HomePlex Furniture and Computer Express.

The Broadbent Co., founded in 1972 as Skinner & Broadbent Co., is one of many real estate developers that struggled with debt problems after the recession struck in 2007.

In a Nov. 10, 2012, article, IBJ detailed some of the legal battles George Broadbent fought in an effort to hold on to most of the company’s many retail properties.

Court filings show that, in January 2007, Broadbent had net worth of $121 million, and his shopping centers had equity of $62 million. As of July 2012, his net worth had fallen to $48 million, and the equity in his real estate projects had shrunk to $10 million.

The company still controls dozens of shopping centers totaling nearly 3 million square feet of leasable space.

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

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