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East-side apartment complex facing foreclosure

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A California bank says it is owed nearly $3.3 million and is seeking to foreclose on a far-east-side apartment complex.

Pasadena-based One West Bank filed a foreclosure notice on April 29 in Marion Superior Court and is attempting to take possession of Red Mill Apartments. The 164-unit complex is at 7975 Red Mill Drive near East 38th Street and North Franklin Road in Indianapolis.

The bank said Quinn II, the operator of the apartment building, took out a $3.4 million loan on April 6, 2006, and has failed to repay it. One West said the company owes $3.2 million in unpaid principal and $93,943 in interest.

One West assumed possession of the loan in November 2010 from Citibank.

Red Mill Apartments are part of the property portfolio of Carmel-based Cornerstone Properties Inc., which controls more than 15 apartment complexes around the Midwest.

Red Mill is at least the third apartment complex in the city threatened with foreclosure in the past few months.

In March, Fannie Mae filed to foreclose on the 220-unit Inverness Apartment Homes and also the 169-unit Arrowwoods Apartments, both located on the northwest side.
 

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  1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

  2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

  3. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  4. If you only knew....

  5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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