IBJNews

California firm's Park 100 portfolio goes back to lender

Back to TopCommentsE-mailPrintBookmark and Share

California-based Blue Real Estate lost the last big chunk of its Indianapolis portfolio last week when a lender took control of Blue’s 360,000-square-foot, seven-building portfolio in Park 100.

Blue bought the collection of mostly office/flex space from Duke Realty in 2007 as part of a move into Indianapolis that began with the purchase of four Castle Creek office buildings in 2006.

Along the way, it scooped up a 17-building, 800,000-square-foot portfolio in Park Fletcher and the Century Building downtown at 36 S. Pennsylvania St. By late 2008, family owned Blue controlled 1.6 million square feet of real estate here valued at about $120 million.

Blue still owns the Century Building, but earlier this year the Castle Creek buildings and the Park Fletcher portfolio came under the control of firms working on behalf of the lenders that held the debt on the properties.

That’s the case with the Park 100 portfolio, which is about 40 percent vacant. Blue defaulted on a $17.5 million loan affecting six of the seven buildings, according to a foreclosure lawsuit filed by Bank of America last February.

CW Capital, a special servicer of commercial debt, is now in control of the property and Jones Lang LaSalle is set to take over leasing of the Park 100 space from Summit Realty Group, sources told IBJ.

Jake Sturman, a broker and senior vice president at Jones Lang LaSalle, wouldn’t comment on his firm’s involvement. But it appears Jones Lang LaSalle is picking up responsibility for one former Blue property after losing another. It handled leasing of Blue’s Park Fletcher portfolio until June, when Blue lost the property and CB Richard Ellis was hired to take over leasing.

Summit, likewise, is holding onto some of its former Blue portfolio. The company lost responsibility for leasing the Park 100 property as of Sept. 30, but is still in charge of leasing at the 320,000-square-foot Castle Creek portfolio, which Blue lost about six months ago.

Rich Forslund, a senior vice president and office broker at Summit, said he and Summit’s Matt Langfeldt were hired by Blue to lease the Castle Creek office space about 2-1/2 years ago. Now they work for LNR Partners, a special servicer of commercial mortgage-backed securities that controls the property. He said the four-building portfolio is about 75 percent occupied.

Forslund said lenders and special servicers seem to be hanging onto properties longer before unloading them. “Now they’re hiring brokers to get more creative with the assets” before selling them, he said.

Sturman agreed. “The fire-sale mentality has changed,” he said. “They’re taking a longer term approach to protect or increase asset value.” Sturman said it’s not unusual for a lender or special servicer to hold onto a property for a year or two to improve value.

Commercial real estate observers told IBJ earlier this year that part of Blue’s problem was that it bought here at the height of the market. The recession brought downward pressure on rents that the company couldn’t withstand.  

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Yes sir keep cashing those 300K a year checks direct to IMS, while millions disappear from the teams like Rahal's. Guess there wasn't enough ka- ching going around to keep Sarah Fisher in business without their "merger". LOL._____.Meanwhile back in Realville the series with the "best racing in the world" drew what appeared to be about 5000 live spectators ( and probably 1500 of those Target "freebies", and was beaten in the ratings by a series that reportedly consists of "parades" and aired while most people are still sleeping. That will generate those big ka-chings for sure. :-). But, hey, as long as the Speedway gets the cash who gives a damn about the teams?

  2. Welcome to PETERSON LOAN AGENCY Company (A Personalized Service for All Your Financial Needs) We, Liberal Investment Company Providers offers loan at a very low interest rate of 2%, we offer Personal loans, Debt Consolidation Loan, Venture Capital, Business Loan, Educational Loan, Home Loan, and Loan for any reason and urgent needs!. with a maximum duration of 30 years. Have you been turned down by your bank? Do you have bad credit? Do you have unpaid bills? Are you in debt? Do you need to set up a business? Worry no more as we are here to offer you a low interest loan. Our loan ranges from $5,000-USD (Five Thousand US dollars) to $50, 000,000.00.(Fifty Million US dollars). We also lend in USA DOLLARS EURO and POUNDS ! Fill in this form and forward it to our email: PETERSONLOANAGENCY@GMAIL.COM 1. Your Full names:_______ 2. Contact address:_______ 3. Country Of Residence:______ 4. Loan Amount Required:________ 5. Duration:_____ 6. Gender:_____ 7. Occupation:________ 8. Monthly Income:_______ 9. Date Of Birth:________ 10.Telephone Number:________ 11. Purpose of loan:_________ Yours In Service, MR PERRY, PETERSONLOANAGENCY@GMAIL.COM

  3. If I could actually get the prices...I would do this on my own. We need laws that force provides to publish the costs they will charge. Everyone else gives you the price in advance...except hospitals.

  4. I was under the impression that fencing is not allowed on a front yard and that on a corner, both sides are considered "front" yards, therefore can't be fenced without a variance. Also impedes the visibility for drivers at the intersection. Am I understanding this correctly? Might be why a fence was not included in the plans and a request for a variance will have to be made?.

  5. I was a big fan of Cowards and Carrots, which I got a chance to see at the show. It's currently on Kickstarter, but the designer also put out What's He Building in There last year, which got a fair amount of buzz.

ADVERTISEMENT