Court OKs selling off Carmel firm's property holdings

May 16, 2014
Back to TopCommentsE-mailPrintBookmark and Share

A Hamilton County court has approved the sale of nine central Indiana properties tied to Carmel-based CFS Inc., which is facing a state securities fraud lawsuit.

Among the highest profile: an office-and-retail building at 12821 E. New Market St. in the Village of West Clay, which sold for $1.4 million.

The so-called Brenwick Building, which formerly housed CFS offices in addition to commercial tenants, was set for a sheriff’s sale in October, but that debt was repaid with sale proceeds, receiver Mary Slade said in an email.

As IBJ reported last year, the Indiana Secretary of State’s securities division filed a complaint in Hamilton Circuit Court against attorney Charles Blackwelder, his son Chad Blackwelder, and his daughter Cara Grumme. The three own CFS Inc.

CFS described itself as a licensed brokerage that provided “real estate investment opportunities,” according to the company’s website at the time. The owners were accused of selling $10.4 million in ownership interests in rental properties to elderly clients and misappropriating their funds.  The case is still pending.

Since Slade—an attorney at Carmel law firm Drewry Simmons Vornehm LLP—and co-receiver William E. Kelley Jr. were appointed in February 2013, they have investigated 48 properties with CFS ties, mostly in Indiana.

Claims filed by investors and debtors totaled more than $23.3 million, Slade said. Court records indicate CFS oversold interest in some properties by as much as 48 percent.

A court-approved property management company is handling utilities, maintenance and rent collections for holdings that have not yet sold. Slade said Judge Paul Felix has approved new listing prices for 18 properties.

Slade said the court has approved two residential sales agreements, and another two are awaiting court approval. Three of the residential properties have leases that expire in 2015 and 2017.

These holdings also have sold for the following court-approved prices, Slade said:

— 13853 Waycross Drive, Fishers: $122,500
— 8437 Ardennes Drive, Fishers: $169,000
— 1481 Jason Road, Greenfield: $250,000
— 12487 Springbrooke Run, Carmel: $260,000
— 13913 Royal Saddle Drive, Carmel: $287,500
— 1474 Sweet Saddle Court, Carmel: $290,000
— 12856 Sheffield Blvd., Carmel: $475,000
— 4905 E. 82nd St., Indianapolis: $2,350,000 (a mortgage in foreclosure was paid off)

The 82nd Street property is home to the Ethan Allen Design Center.

Two other Village of West Clay buildings owned by CFS are not subject to Slade’s oversight.

Old National Bank foreclosed on the Sterkx Building at 12701-12703 Meeting House Road—the onetime home of Blackwelder family-run Chappie’s restaurant—and sold it last year at a sheriff’s sale for $950,000.

Huntington National Bank is still pursuing a foreclosure of the former Harvest Fresh Market location at 12770 Horseferry Road, Slade said. The property was removed from the receivership because it was used to secure loans on other properties that also are being foreclosed upon.

The court will address how property-sale proceeds should be distributed following a June 9 claims-allocation hearing.
 

ADVERTISEMENT

Post a comment to this blog

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
  1. I am also a "vet" of several Cirque shows and this one left me flat. It didn't have the amount of acrobatic stunts as the others that I have seen. I am still glad that I went to it and look forward to the next one but I put Varekai as my least favorite.

  2. Looking at the two companies - in spite of their relative size to one another -- Ricker's image is (by all accounts) pretty solid and reputable. Their locations are clean, employees are friendly and the products they offer are reasonably priced. By contrast, BP locations are all over the place and their reputation is poor, especially when you consider this is the same "company" whose disastrous oil spill and their response was nothing short of irresponsible should tell you a lot. The fact you also have people who are experienced in franchising saying their system/strategy is flawed is a good indication that another "spill" has occurred and it's the AM-PM/Ricker's customers/company that are having to deal with it.

  3. Daniel Lilly - Glad to hear about your points and miles. Enjoy Wisconsin and Illinois. You don't care one whit about financial discipline, which is why you will blast the "GOP". Classic liberalism.

  4. Isn't the real reason the terrain? The planners under-estimated the undulating terrain, sink holes, karst features, etc. This portion of the route was flawed from the beginning.

  5. You thought no Indy was bad, how's no fans working out for you? THe IRl No direct competition and still no fans. Hey George Family, spend another billion dollars, that will fix it.

ADVERTISEMENT