IBJNews

Real estate meltdown leaves developers reeling

Back to TopCommentsE-mailPrintBookmark and Share
Year In Review
More
Stories
State's economy stuck in neutral Indictment: Durham looted Fair Finance Ballard cruises to second term City backs string of high-profile
                              projects Manning's injury sends Colts
                              into tailspin Downtown mall stung by loss
                              of Nordstrom Right-to-work battle derails
                              legislative session General Assembly overhauls K-12 education Real estate meltdown leaves developers reeling Spate of Indiana firms
                              lines up for IPOs Rolls-Royce relocated 2,500
                              jobs to downtown Openings launch new era for
                              tourism biz Patent expirations up pressure
                              on Lilly Las Vegas crash saps IndyCar
                              momentum


Newsmakers
Simon
                              takes on Amazon.com Melangton Daniels White in crosshairs as reformers target IPS

It was another rough year for the real estate sector in 2011, as the homebuilder Estridge filed for bankruptcy, strip-center specialist Broadbent struggled to hold onto its headquarters, and Centre Properties faced a $43 million foreclosure suit.

Local homebuilder Paul Estridge Jr. in late September filed Chapter 7 personal bankruptcy, agreeing to surrender his two homes—one in Westfield and one in Florida—and other possessions to satisfy a mountain of debt he accrued from his former business.

Estridge said he owes a list of creditors including banks, suppliers and vendors more than $50 million. In a bankruptcy filing with the U.S. Bankruptcy Court Southern District of Indiana, Estridge listed assets worth between $1 million and $10 million. Estridge told IBJ he thought his assets had a value of $5 million or less.

The Estridge Group, a fixture in the Indianapolis-area’s homebuilding industry for more than 40 years, became part of Houston-based David Weekley Homes in April when the company could no longer keep up with a mounting pile of debt. Estridge took over the business from his father, Paul Sr., in 1992.

Lenders in 2011 began foreclosure proceedings on The Broadbent Co.’s downtown headquarters as part of a $25 million federal lawsuit against the Indianapolis-based real estate developer.

realestate Lenders sought to foreclose on properties held by The Broadbent Co. and other retail developers. Estridge was among the homebuilders unable to withstand the downturn. (IBJ File Photo)

The Huntington National Bank and PNC Bank filed the complaint in U.S. District Court in Indianapolis on July 22, charging that Broadbent defaulted on various construction loans and mortgages dating from February 2007.

Broadbent, a strip-center real estate specialist, borrowed money to buy and renovate its headquarters at 117 E. Washington St.

IBJ reported in July that George Broadbent sold The Broadbent Co. to his wife, Mary Clare Broadbent, for $50,000 in March 2010 as the mounting lawsuits threatened his control of the company.

As lenders circled, Broadbent also transferred his ownership interests in five retail properties to his wife for “estate planning reasons,” and sold to her his ownership interest in nine other properties for $150,000, court records show.

Broadbent’s properties seeking bankruptcy reorganization include the Castleton Plaza and Greenwood Pointe shopping centers.

The developer Centre Properties also was ailing in 2011, as Boston-based U.S. Bank filed to foreclose on its 130,000-square-foot Centre North Shops at 8510 E. 96th St. in Fishers, the 17,900-square-foot Southport Shops at 7225 U.S. 31 South, and the 13,300-square-foot German Church Shops at 10935 E. Washington St.

Centre Properties, founded in 1985 by Craig W. Johnson and James F. Singleton, has developed more than 2.2 million square feet of retail space in the Indianapolis area, according to the company’s website.

The bank brought the $43 million foreclosure lawsuit in November.•
 

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
  1. A Tilted Kilt at a water park themed hotel? Who planned that one? I guess the Dad's need something to do while the kids are on the water slides.

  2. Don't come down on the fair for offering drinks. This is a craft and certainly one that belongs in agriculture due to ingredients. And for those worrying about how much you can drink. I'm sure it's more to do with liability than anything else. They don't want people suing for being over served. If you want a buzz, do a little pre-drinking before you go.

  3. I don't drink but go into this "controlled area" so my friend can drink. They have their 3 drink limit and then I give my friend my 3 drink limit. How is the fair going to control this very likely situation????

  4. I feel the conditions of the alcohol sales are a bit heavy handed, but you need to realize this is the first year in quite some time that beer & wine will be sold at the fair. They're starting off slowly to get a gauge on how it will perform this year - I would assume if everything goes fine that they relax some of the limits in the next year or couple of years. That said, I think requiring the consumption of alcohol to only occur in the beer tent is a bit much. That is going to be an awkward situation for those with minors - "Honey, I'm getting a beer... Ok, sure go ahead... Alright see you in just a min- half an hour."

  5. This might be an effort on the part of the State Fair Board to manage the risk until they get a better feel for it. However, the blanket notion that alcohol should not be served at "family oriented" events is perhaps an oversimplification. and not too realistic. For 15 years, I was a volunteer at the Indianapolis Air Show, which was as family oriented an event as it gets. We sold beer donated by Monarch Beverage Company and served by licensed and trained employees of United Package Liquors who were unpaid volunteers. And where did that money go? To central Indiana children's charities, including Riley Hospital for Children! It's all about managing the risk.

ADVERTISEMENT