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Centre Properties retail center hit with $7M foreclosure suit

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Indianapolis-based developer Centre Properties is the target of another foreclosure suit, this one involving Pyramid Place Shoppes, a retail center on the northwest side.

Citigroup Mortgage Lending Trust, or CMLT, filed the complaint in Marion Superior Court late last month and is seeking $7.2 million. A hearing has been set for Aug. 16 to appoint a receiver to manage the property until it is sold.

The 52,400-square-foot Pyramid Place Shoppes is at the busy intersection of West 86th Street and Michigan Road. Its tenants include multiple eateries, including Outback Steakhouse, Noodles & Co., Firehouse Subs, Skyline Chili and Qdoba.

The suit said the $7 million loan to Centre Properties’ subsidiary Pyramid Place Shops LLC originated with LaSalle Bank in August 2007 and was assigned to Bank of America the following year. The mortgage eventually ended up with CMLT.

CMLT sent a default notice to Centre Properties in April this year, seeking $7.2 million, including interest on the loan.

Centre Properties was founded in 1985 by Craig W. Johnson and James F. Singleton. Neither returned phone calls seeking comment on the foreclosure filing. Their company has developed more than 2.2 million square feet of retail space in the Indianapolis area, according to its website.

But Centre Properties has encountered problems with lenders. In November, 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.

The properties are being sold at a sheriff sale, according to court documents.

Centre Properties is among a long list of retail developers hit with foreclosure lawsuits in the aftermath of the 2008 financial crisis.

“It is very difficult to get refinancing on multi-tenant shopping centers,” said Eric Hillenbrand, an independent commercial real estate broker. “The terms and conditions are very different than they were when a loan might have originated.”

He said Centre Properties’ Pyramid Place Shops is well-occupied and in an attractive location near large office parks and bigger retailers, including Walmart and Sam's Club.
 

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  1. If I were a developer I would be looking at the Fountain Square and Fletcher Place neighborhoods instead of Broad Ripple. I would avoid the dysfunctional BRVA with all of their headaches. It's like deciding between a Blackberry or an iPhone 5s smartphone. BR is greatly in need of updates. It has become stale and outdated. Whereas Fountain Square, Fletcher Place and Mass Ave have become the "new" Broad Ripples. Every time I see people on the strip in BR on the weekend I want to ask them, "How is it you are not familiar with Fountain Square or Mass Ave? You have choices and you choose BR?" Long vacant storefronts like the old Scholar's Inn Bake House and ZA, both on prominent corners, hurt the village's image. Many business on the strip could use updated facades. Cigarette butt covered sidewalks and graffiti covered walls don't help either. The whole strip just looks like it needs to be power washed. I know there is more to the BRV than the 700-1100 blocks of Broad Ripple Ave, but that is what people see when they think of BR. It will always be a nice place live, but is quickly becoming a not-so-nice place to visit.

  2. I sure hope so and would gladly join a law suit against them. They flat out rob people and their little punk scam artist telephone losers actually enjoy it. I would love to run into one of them some day!!

  3. Biggest scam ever!! Took 307 out of my bank ac count. Never received a single call! They prey on new small business and flat out rob them! Do not sign up with these thieves. I filed a complaint with the ftc. I suggest doing the same ic they robbed you too.

  4. Woohoo! We're #200!!! Absolutely disgusting. Bring on the congestion. Indianapolis NEEDS it.

  5. So Westfield invested about $30M in developing Grand Park and attendance to date is good enough that local hotel can't meet the demand. Carmel invested $180M in the Palladium - which generates zero hotel demand for its casino acts. Which Mayor made the better decision?

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