IBJNews

Lender's suit says homebuilder owes $12.8M on loans

Back to TopCommentsE-mailPrintBookmark and Share

A prominent local homebuilder and commercial developer owes $12.8 million on two loans he took out to buy property on Indianapolis’ south side that now are in default, according to a lawsuit filed by the company’s lender.

J. Greg Allen is the target of the complaint from M&I Bank, which alleges the Greenwood-based businessman failed to pay the loans he received in May 2008.

Allen borrowed the money to purchase two tracts of vacant land—59.7 acres and 13.3 acres—on the northeast corner of Emerson Avenue and County Line Road, the suit said.

As of June 24, Allen owed the entire $9 million balance on one loan and $3.8 million in principal on another $5.5 million loan, according to the suit. In addition, M&I claimed the builder owes $323,876 in interest on the two loans.

Milwaukee-based M&I is asking a Marion Superior Court judge to foreclose on the properties and issue a court order to sell the real estate to pay the judgment.

“Despite demand by M&I, the guarantor has failed and refused to honor his obligation to M&I pursuant to the terms and conditions of his guaranty and the other loan documents,” M&I charged in its suit.

But J. Greg Allen, who also operates a commercial division that developed downtown’s Allen Plaza, said he’s already come to an agreement with M&I to work out the debt and that he expects the suit to be withdrawn soon.

“I’ve been with that bank [formerly First Indiana Bank in Indianapolis] for 25 years,” Allen said, “and we’re in good standing with them.”

A spokeswoman for the bank declined to comment on the lawsuit.

J. Greg Allen Builder and Princeton Homes, both owned by Allen, folded recently after he filed suit against two longtime executives. Allen alleges in a suit filed in Johnson Superior Court that the two stole nearly $1 million “over a long period of time” from the companies. One of the executives has denied wrongdoing; an attorney for the other did not return a call from IBJ.

J. Greg Allen Builder, founded in 1986, ranked ninth among Indianapolis-area custom home builders in IBJ’s most recent Book of Lists with $5.7 million in revenue in 2009. It closed on 12 homes that year with an average sale price of $525,000.

Princeton Homes was the area’s 10th-largest home builder in 2009 with 30 permits filed.

 

ADVERTISEMENT

  • Executives No More
    The executives know that they got away with whatever they did..... There is no justice in today's court system. It is easy money for lawyers and mediators that will ultimately tell him to "settle". We need to clean up our court system.
  • Karma always come around
    The best of people are suffering during these difficult times. Some tell the truth of it. While others like this situation choose to continue to deceit and blame others for their failures Be honest and take responsibilty for once
  • Wanksta
    How can he say he's in "good standing" with the bank? Erroneous! It's no wonder banks don't do deals on a handshake anymore...this guy says he banked with them for 25 years and this is how he holds up his end of the contract after that relationship?
  • Here we go again
    Another "big spender" goes down in Indy...shocking. Why do all of these guys who brag the loudest about their money always end up in the news for being millions in debt...with no way to pay...then blame someone else. Time to step up and pay these people back and quit making excuses.
  • Hmmmphf....
    Anyone suprised by this????

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
  1. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT