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Real estate exec’s bankruptcy filing lists $13.3M of debt

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A local real estate executive is claiming $13.3 million of debt, much of it owed to unsecured creditors, in his federal bankruptcy filing.

Philo Lange, a now-independent real estate broker who once served as a top executive at two prominent Indianapolis-area firms, filed for Chapter 7 bankruptcy protection on Monday. He is former managing partner of the now-defunct NAI Olympia Partners and was managing director of the Indianapolis office of Dallas-based Trammell Crow Co.

Lange lists $793,335 in assets, including $758,000 tied to four rental homes he owns. Three are located on North College Avenue in Indianapolis and the other in Petoskey, Mich., near the Upper Peninsula of the state, according to court documents.

His total debt includes nearly $12 million in unsecured claims, in which he owes PNC Bank $5.2 million for personal guarantees on two notes to business interests Hoosier Storage-Georgetown LLC and Harbor Plaza LLC.

Lange also owes $2.1 million to Ameriserv Trust & Financial Service in Indianapolis for a loan made to NBD One LLC, in addition to a $900,000 balance on another note to NBD from Community Bank in Noblesville, court documents said.

Lange founded Lange Realty Inc. in 1981 and operated it until 1995, according to his website. He served as managing director of Trammell Crow's local office from 1996 to 2000 and then joined NAI Olympia Partners, where he eventually became managing partner.

Olympia folded in December 2010 after a 20-year run as one of the city's largest commerical real estate brokerages.

Lange did not return a phone call seeking comment about the bankruptcy.
 

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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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