IBJNews

Premier Properties auction attracts no bids

Back to TopCommentsE-mailPrintBookmark and Share
No bids were submitted today at an auction for control of 10 properties owned by Indianapolis-based Premier Properties USA Inc., the financially troubled development company run by Chris White.

That means Atlanta-based Dominion Capital Management LLC - one of Premier's largest lenders - will take control of the properties this afternoon and bring in property managers to operate them.

Dominion Capital has hired CB Richard Ellis to manage Premier's properties in Indianapolis. Those properties include the 600,000-square-foot Metropolis mall in Plainfield, a strip center called Plainfield Commons, and a parcel at 86th Street and Haverstick Road where another developer had proposed a Whole Foods.

Dominion Capital General Counsel Bill Armstrong said he would sign papers this afternoon that transfer control of most of the properties to Dominion. Control of the Metropolis mall in Plainfield has been transferred via a separate agreement.

Dominion Capital has received inquiries from several potential buyers, including one interested in buying all 10. Now that the properties have been offered publicly, as required by statute, those sales discussions are likely to continue privately, Armstrong said.

"We have lots of interest in the properties," Armstrong said after the auction. He added, "We have to go through this process."Nineteen people attended the hearing, but most were creditors of Premier or investors in Dominion, Armstrong said.

Among the attendees were two Premier executives: Chief Financial Officer Joshua Kane and General Counsel Bruce Smith.

A call to Smith after the auction was not immediately returned.

Dominion Capital has hired managers for Premier's other properties around the country, Armstrong said. They include several lifestyle malls in various stages of development: Sixteen West in Georgia; Bridgewater Falls in Ohio; The Foundry in Pennsylvania; The Marquis in Virginia; and The Current in Florida.

Premier and its founder, Christopher P. White, face numerous lawsuits alleging unpaid bills, defaulted loans, illegally redirected rent payments and check fraud. The company laid off half of its headquarters staff - about 40 employees - at the end of March.

The sale of Premier's real estate holdings could signal that an end is near for the 15-year-old company, which built its name on outsize deals with little margin for error but has sputtered since credit markets tightened and easy credit disappeared.

The auction was organized by Ice Miller attorney Henry Efroymson. After adjourning the auction, he said it was, "Much ado about nothing."

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
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
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT