The lender of a large condominium building on the southeast side of downtown is seeking to foreclose on it, claiming the owner defaulted on the $11.6 million mortgage.
First Horizon Home Loans filed its complaint Aug. 7 in Marion Superior Court against Page Pointe Development LLC, the owner of the Villagio at Page Pointe at 443 Virginia Ave.
A hearing has been set for Sept. 2 to address First Horizon’s request that the court appoint a receiver to manage the property during the foreclosure process.
First Horizon, a division of Memphis-based First Tennessee Bank, claims in its suit that Page Pointe Development owes a balance of nearly $5.2 million on the $11.6 million loan. The bank notified the developer of the default in a June 24 letter, First Horizon said in the suit.
Page Pointe Development received the loan for the 9-story, 64-unit building at Virginia Avenue and South East Street in February 2008. It opened in April 2010.
The foreclosure filing is just the latest in a string of financial troubles for the owners of locally based Page Development.
Indianapolis attorney and developer Paul J. Page filed in December for Chapter 7 bankruptcy protection, listing his largest debt as a $6 million guarantee on the Villagio. He also listed more than $3 million in loan guarantees mainly from his business activity with Page Development, and a $2 million promissory note on a Florida condominium.
A bankruptcy judge in Indianapolis dismissed the case in late April.
Page early last year pleaded guilty to a felony wire fraud charge in U.S. District Court in South Bend, agreeing to testify if called against co-defendants John M. Bales, a real estate broker, and Bales partner William E. Spencer in a Northern District case.
A 14-count indictment in South Bend claimed Page, Bales and Spencer defrauded the state and a bank over their purchase of a building in Elkhart and a subsequent lease deal with the state's Department of Child Services. A jury found Bales and Spencer not guilty.
Page was sentenced to two years probation and ordered to pay a $10,000 fine for concealing the source of a $362,000 down payment on his purchase of the state-leased office building in Elkhart.
Page is the third Page Development executive to file bankruptcy after the firm’s real estate ventures were upended by the housing crash.
Paul M. Pittman, Page’s law partner and chief financial officer of Page Development, filed Chapter 7 in September 2011. And Tony Page, who was president of the company, filed in July 2010.
Page Development CEO Peter J. Page was the other principal of the company.
Paul Page could not be reached for comment Friday morning on First Horizon’s request to foreclose on the Villagio.