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Lender forecloses on Uptown Business Center

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A lender has filed to foreclose on the Uptown Business Center, a neighborhood retail building at the southwest corner of 49th Street and College Avenue that an Indianapolis developer had hoped to use as a springboard to revitalize the intersection.

The building's tenants include the Upland Brewery tasting room and The Paw Patch Veterinary Hospital. Previous tenants include City Dogs Grocer.

Building owner Leif Hinterberger and his partners owe $802,500 under the defaulted mortgage, according to a foreclosure suit filed last week by PSB Credit Services Inc., which appears to be based in Minnesota. The lender filed the suit in Marion Circuit Court.

The filing also names Arturo DeRosa, Donald C. Arbogast Jr., Dan Fortune and Steve LaCrosse, who loaned money to Hinterberger and hold second mortgages on the building.

The prospect of losing the building is another blow to Hinterberger, who last year lost control of six properties at the intersection's northwest corner where he had hoped to build a $19 million mixed-use project called The Uptown.

The properties on the northwest corner are now controlled by locally based Strategic Mortgage Funding, a company operated by real estate investor Bryan Chandler that invests in distressed mortgages.

Chandler declined to comment on the latest foreclosure filing.

Hinterberger, who spent six years and his life savings trying to build the retail and apartment project, blames its demise on higher property taxes, shady lenders and delays in government incentives he had sought.

In an interview, he lashed out at "unregulated lenders" running "a giant Ponzi scheme" who have taken back some of his properties and are trying to take back the Uptown Business Center.

"Once they get your knee, they go for your ankle, your hip, and then your neck," Hinterberger said. "I call foul."

Even as he's lost control of the properties, Hinterberger said he still hopes to bring together city officials, neighborhood groups and the new property owners to see through his vision for the neighborhood.

The other option: "I can tie this up in litigation," he said.

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  • Come on Man....
    It seems like this vision...or charade...has been going on for far to long. It's like viewing an NFL game with replacement Refs. It's painful to watch. I think plenty of people want to believe that there was originally some really good intentions behind this redevelopment plan. Unfortunately the music (and the project) stopped when the economy hit the brakes and there simply weren't enough chairs for everyone. This developer, like so many others, got caught with huge loans out that couldn't be renewed due to falling property values. And like many others, left with no alternative but to turn to non conventional lenders offering Loan Shark interest rate products designed to eventually acquire the asset upon default. Welcome to the big leagues. It's not fair. It's not right, but it's legal. It's simply a bad call. Time for a new game with new players and officials. This game is over.
  • Awful Tough
    Having grown up in the that neighborhood, you people ought to be glad that anybody has put money back into that area. For someone to put that much on the line, you are being awful hard on someone. Of course if Obama wins, don't worry the government will invest in that neighborhood. Yeah right!
  • Get out of the way Leif
    Some vision for the city that he is threatening to tie of the entire property in lawsuits. In the meantime the neighbors get to stare at an empty lot. I hope Chandler is able to put the entire parcel together and bring in a qualified developer and do the job that this clown obviously cannot.
  • Leif
    I predict that in another three years, he will end up living in a box on that corner, still shouting out to anyone who will listen, about how the lenders/government/community have done him wrong and denied his "vision for the community".
  • Successful building
    City Dogs moved to a larger location at 52nd and College a few years ago. Kreme Twenty Four is in that spot now. There's also a salon on the second floor. The fact that Hinterberger can't keep this building solvent despite having some really stable tenants is proof that the guy couldn't run a one-car parade. The quicker he's out of the neighborhood, the better.

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