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Castleton Plaza seeks bankruptcy reorganization

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The owner of an Indianapolis shopping center is seeking to reorganize under the protection of bankruptcy less than a month after a lender filed to foreclose on the property.

Castleton Plaza LP, the owner of the Castleton Plaza strip mall along East 82nd Street, filed for Chapter 11 bankruptcy on Wednesday in U.S. Bankruptcy Court in Indianapolis.

The company is a subsidiary of Indianapolis-based Broadbent Co., one of the city’s biggest shopping-center developers.

The bankruptcy, the latest in a string of legal battles ensnaring Broadbent, follows a foreclosure request filed Jan. 26 by New York-based German American Capital Corp. in Marion Superior Court.

German American, a secured creditor, claims Castleton Plaza owes nearly $8.7 million on the balance of a $9.5 million loan made in August 2000, as well as $1.1 million in interest. Additional fees bring the total to $10.1 million.

The amount owed to German American includes the vast majority of the nearly $10.4 million Castleton Plaza lists as liabilities in court filings. Much of the remainder of secured claims, $165,000, is owed in unpaid property taxes dating from 2009.

The largest unsecured creditor, Indianapolis Power & Light Co., is owed $14,540.97 in unpaid electric bills dating to November.

Castleton Plaza lists total assets of nearly $7.6 million, including more than $6.8 million in real property.

The shopping center, which has 18 tenants, contains 171,736 square feet of retail space and is anchored by a Sam Ash Mega Store and Dollar Tree.

Castleton Plaza is the third Broadbent subsidiary to seek bankruptcy protection. White River Investments LP voluntarily filed for Chapter 11 in October. Its attempt to reorganize also continues in U.S. Bankruptcy Court in Indianapolis.

And Greenwood Point LP, which owns the Greenwood Point strip mall across the street from Greenwood Place, filed for reorganization in January 2010. That case also is pending in federal bankruptcy court.

In addition, two lawsuits allege company President George Broadbent defaulted on loans.

In one of the suits, Columbus, Ohio-based Huntington National Bank sued George Broadbent and White River Investments, a partnership that owns at least part of Clearwater Crossing, also on East 82nd Street.

The court granted Huntington a judgment of $631,580 in December.

The other suit, filed by Pittsburgh-based PNC Bank, said George Broadbent defaulted on a $1.5 million loan it extended to him in April 2009. The court awarded PNC the amount in October. The court fights began in August 2009, when Broadbent sued PNC and Huntington, claiming they were wrongly attempting to restrict access to a $50 million credit line.
 

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  1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

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