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Centre Properties escapes foreclosure on 12 properties

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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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  1. I took Bruce's comments to highlight a glaring issue when it comes to a state's image, and therefore its overall branding. An example is Michigan vs. Indiana. Michigan has done an excellent job of following through on its branding strategy around "Pure Michigan", even down to the detail of the rest stops. Since a state's branding is often targeted to visitors, it makes sense that rest stops, being that point of first impression, should be significant. It is clear that Indiana doesn't care as much about the impression it gives visitors even though our branding as the Crossroads of America does place importance on travel. Bruce's point is quite logical and accurate.

  2. I appreciated the article. I guess I have become so accustomed to making my "pit stops" at places where I can ALSO get gasoline and something hot to eat, that I hardly even notice public rest stops anymore. That said, I do concur with the rationale that our rest stops (if we are to have them at all) can and should be both fiscally-responsible AND designed to make a positive impression about our state.

  3. I don't know about the rest of you but I only stop at these places for one reason, and it's not to picnic. I move trucks for dealers and have been to rest areas in most all 48 lower states. Some of ours need upgrading no doubt. Many states rest areas are much worse than ours. In the rest area on I-70 just past Richmond truckers have to hike about a quarter of a mile. When I stop I;m generally in a bit of a hurry. Convenience,not beauty, is a primary concern.

  4. Community Hospital is the only system to not have layoffs? That is not true. Because I was one of the people who was laid off from East. And all of the LPN's have been laid off. Just because their layoffs were not announced or done all together does not mean people did not lose their jobs. They cherry-picked people from departments one by one. But you add them all up and it's several hundred. And East has had a dramatic drop I in patient beds from 800 to around 125. I know because I worked there for 30 years.

  5. I have obtained my 6 gallon badge for my donation of A Positive blood. I'm sorry to hear that my donation was nothing but a profit center for the Indiana Blood Center.

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