Developer of Binford Medical Complex files for Chapter 11

Back to TopCommentsE-mailPrintBookmark and Share

The developer of an unfinished medical office complex on Binford Boulevard has filed for Chapter 11 bankruptcy protection in hopes it can retain control of the property and resume construction later this year, four years after the principal lender went bankrupt and sent the project into limbo.

Binford Medical Developers LLC filed for Chapter 11 bankruptcy reorganization early this month to prevent a forced sale of the 17-acre property at 65th Street and Binford Boulevard to collect unpaid property taxes. The move buys time for the developer to close on a settlement with its original construction lender and a new loan to finish the first building in the so-called Binford Medical Complex, company principal Ken Schmidt said.

The first building in the $32-million, five-building complex was about 95 percent complete when lender USA Capital filed for bankruptcy in April 2006. By that point, USA Capital had provided only $7.4 million of an $8.5 million loan it had promised.

Schmidt hasn't paid interest on the loan since 2006, as he awaited a settlement. The biggest hurdle to reaching terms: USA Capital was funded by thousands of small investors, and 92 of them are listed on the title for the Binford Medical property.

The developer has landed a new loan that will set aside $1 million to finish the first building, along with funds to settle with the 92 investors in the original loan. Schmidt said the investors agreed to take less than they're owed, but he declined to provide details.

Schmidt hopes to reach a separate settlement with county officials over an unpaid $129,000 tax bill. He plans to dispute the assessed property value, arguing the property has sat mostly vacant.

The 47,000-square-foot existing building has only two tenants: a 4,300-square-foot urgent care center that continues to pay rent but has not been open for business, and Seward Sales Corp., which occupies about 2,200 square feet.

Schmidt, who has developed 22 smaller office and industrial buildings in the area, said he has leases lined up for 75 percent of the building once it is complete. He also has a commitment from one tenant to take an entire new building in the complex.

Future buildings in the complex would be built as soon as financing and demand come together. Medical office has been a strong sector of commercial real estate, and the project should benefit from its location on a major corridor not far from Community North.

"I buried my own money ($6 million) in this project," he said. "The only way I can get my money back or a portion back is to build out, lease up and get the whole project completed."

The Chapter 11 case was filed in the U.S. Bankruptcy Court for the Southern District of Indiana on Oct. 6. Binford Medical Developers lists assets of less than $50,000 against liabilities between $1 million and $10 million.


  • 75%? Really?
    I doubt that there is sincere tenant interest for 35,000 SF in this building. If that was the case, it would already be filled. If the existing urgent care facility ceases operations, clearly there is a problem with the location or demographics. Instead of chasing Dr's as tenants, maybe they should be chasing a mortuary tenant.

Post a comment to this story

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

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. The Affordable Care Act is not the reason for the slow recovery and lack of high paying jobs for low skill workers. This is a trend that has been going since the early 80's. The recovery is real in the sense that GDP has been growing steadily at a rate of roughly 2.5% since the recession ended in late 2009 (newsflash, the stimulus worked) and the unemployment has been steadily dropping. The reason issue we are facing deals with a skills gap (not enough workers with the right credentials / experience) and wage stagnation due to corporate America being focused solely on maximizing profits for shareholders and not caring about the American middle class. Why should they? Multi-billion dollar mutlinational companies keep offshoring their profits in order to avoid paying taxes (which makes our deficit worse) they convince Americans to fight amongst themselves. If you want to create jobs and reduce the deficit, raise the minimum wage and change corporate tax laws. Of course, if you want to continue to belive that tax cuts for wealthy create jobs (which they don't) and allow corporations and the wealthy to continue to make you cover more and more of the costs of maintaining infrastructure, funding the military and other government services, then keep voting Republican. Hopefully someday you wake up and realize what's been going on since Reagan took office.

  2. Helloooooo, my name is Kate. I am so joyous to share this wonderful testimony about what Dr. Osoijiakhena, a great spell caster, did for me and my family. I wedded a year and 6 months ago, we were very happy during this whole period, i really love my husband so so much. I started noticing changes when he started coming home late at night, he stop paying attention to me, i later found out that he was having an affair with another lady, i dont know what she did to get to him but she really got a hold on him. He started spending weekends with her, and threaten for divorce. I was so heart broken and devastated, i spent many night thinking on how to get my husband back. A friend took it upon herself to to introduce me to one Dr. Osoijiakhena, a great spell caster, who once helped her with a spell that reunited her family and helped her husband secure a very prolific job. Though i had my doubts and never believed, but i decided to give it a try because i was helpless. I contacted Dr. Osoijiakhena, the Spell caster, to help me reunite my family by bringing back my husband from that other woman and break whatever hold she had on him. He only just told me that it's a minor issue, once i provide and do everything he will ask me to do, then i will have my family back again. I did everything he required. And he did it!!!!! My husband returned back to me and pleaded for forgiveness, and i also secured a well paid job in a big company, just as the great spell caster, Dr. Osoijiakhena said. I am so so happy to share my testimony on this wall. I am using this medium to tell every one that has same or similar problem to try the great Dr. Osoijiakhena through his mail: drosoijiakhenaspell@gmail.com......he is so real!!!!! He can also help you with: (1) IF YOU WANT YOUR EX GIRL/BOYFRIEND TO RETURN BACK TO YOU (2) IF YOU WANT YOUR HUSBAND/WIFE BACK (3) IF YOU WANT TO BE PROMOTED IN YOUR OFFICE (4) IF YOU WANT YOUR MAN OR WOMAN TO LOVE YOU (5) IF YOU WANT A CHILD (BARREN) (6) IF YOU WANT TO BE RICH/WEALTHY (7) IF YOU WANT YOUR HUSBAND/WIFE TO BE YOURS FOREVER (8) IF YOU'VE BEEN SCAMMED AND WANT YOUR MONEY BACK (9) IF YOU ARE HAVING DELAY IN GETTING MARRIED (10) IF YOU HAVE A COURT CASE AND WANT TO WIN (11) IF YOU'RE A DRUG ADDICT AND YOU WANT TO REALLY STOP (12) IF YOU CANNOT IMPREGNATE A WOMAN (STERILE) (13) ALL TYPES OF DISEASES I advise you to contact the great Dr. Osoijiakhena, the spiritualist for solutions via his email: drosoijiakhenaspell@gmail.com

  3. Sergeant McNally is buried in Cathcart Cemetery on a hill known as McNally%u2019 Hill. The Cemetery is in a natural bushland setting and is very well maintained.The emergency department at Ararat Hospital is known as the John McNally Emergency Department. Cathcart is approx. 4.6 km from Ararat and is approx. 345 m above sea level.

  4. My spring chicken of a Mom is turning 75 years young. She is a big fan of Frankie and I think she would get a big kick out of the film. I wanted to take her to the Broadway play but am priced out. Thanks for your time and consideration. Oh yea, Wildwood! Joie

  5. I thought this company would go bankrupt in 2013/2014. I predicted that four years ago. I was wrong. It will take another couple of years, but they will get there.