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East-side biz incubator target of foreclosure

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Wells Fargo Bank is seeking to foreclose on a near-east-side business incubator and is asking a Marion Superior Court judge to appoint a receiver to manage the property.

The San Francisco-based bank, serving as trustee for mortgage holder Bank of America, is suing Indianapolis Enterprise Center LLC at 55 S. State St. to recoup a $3.1 million loan balance.

Since receiving the loan in October 2007, Indianapolis Enterprise Center has paid just $50,000 of the principal and hasn’t made a payment since July 2009, the complaint said.

The former owner of the property sold the 200,000-square-foot incubator to a group known as Indianapolis Enterprise Center LLC in 2007. At that time the center had 72 tenants, according to IBJ records.

It’s unclear whether the incubator is operating. A phone number listed on its website for the center’s general manager was answered by voicemail for Indiana Loss Mitigation Inc. That company’s address is listed as 55 S. State St., the same as the incubator’s.

IBJ placed numerous calls to numerous businesses listed as tenants of the center, but reached only one. An employee for National Library Bindery Co. of Indiana Inc. said the company was still operating in the building, but he declined further comment.
 
Wells Fargo, which filed the suit on Jan. 9, wants the property sold to help satisfy the debt.

The 77-year-old building once served as a grocery warehouse for A&P. Half Price Books, Bosma Industries and HealthNet Inc. are former tenants of the center.


 

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  • pitiful
    Since the purchase in 2007, the current (and absentee) owner has left the property under staffed and under funded for updates and at times even day to day operation. Sad to see a landmark this size go through this turmoil. Hopefully the next owner will take more interest in the building and its history.
    IBJ should do a bit more homework before publishing however. IU health and Half priced books are still tenants in that building.
  • fyi
    fyi
  • Smells Like Countrywide
    So, Bank of America is asking Wells Fargo to serve as trustee for a loan that was made in 2007. I recommend that IBJ request the opportunity to review the loan papers on this building. Back in 2007, Countrywide, later acquired by Bank of America, was providing loans at near ridiculous terms, and the paperwork for the majority of those deals cannot be located and thus provided to the court for final foreclosure rulings. We will see more commercial property foreclosures during 2012, if the lenders can produce the paperwork. If Bank of America was the original lender, why would Wells Fargo need to be involved?
  • Queensize Recording Studio
    I believe a recording studio is housed there called Queensize. I doubt they'll survive if they aren't already closed.
  • Where's the money going?
    I briefly worked for a group housed in that building a couple of years ago. The owners certainly aren't using the rent money on the building itself. I hasn't been updated in more than 20 years at best. Old, crappy carpeting, outdated bathrooms, overall creepy atmosphere.
  • Where's the money going?
    I briefly worked for a group housed in that building a couple of years ago. The owners certainly aren't using the rent money on the building itself. I hasn't been updated in more than 20 years at best. Old, crappy carpeting, outdated bathrooms, overall creepy atmosphere.

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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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