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The Dose

Welcome to The Dose, which tackles the business and economics inside the turbulent world of health care and life sciences in Indiana. Your host is John Russell. To contact me call 317-472-5383.

Carmel medical office owner files for bankruptcy

May 30, 2019

The owner of a Carmel medical office building is filing for bankruptcy reorganization, saying that two recent offers to purchase the building have fallen through.

Carmel Medical Office Building LLC, 10601 N. Meridian St., filed for Chapter 11 on May 15 in U.S. Bankruptcy Court in Indianapolis. The building is known as Multi-Specialty Surgery Center.

The company, owned by Carmel Investment Group LLC, has owned the two-story building since 2013. The only tenant is Beltway Surgical Center LLC, which occupies the entire first floor. The second floor is vacant.

Carmel Medical listed assets of $6.13 million and liabilities of $6.67 million.

In an affidavit, Zakir Khan, president of the medical building, said he marketed the building for sale in 2018 and received two offers: $5.6 million from Global Medical REIT Inc. and $5.3 million from CCI Beltway 106th LLC. But the offers were later withdrawn, he said.

Khan said his commercial lender, CIMB Bank, foreclosed on the building’s mortgage last fall in Hamilton County Circuit Court, and a sheriff’s sale was later scheduled for the building. He said the bank has been sequestering monthly rents from the building’s only tenant since November.

“Without such rents, Carmel Medical has been unable to pay operating expenses associated with the building, despite its obligation and desire to pay such expenses,” Khan wrote in his affidavit.

Unsecured creditors include the Hamilton County Treasurer, Michael Boaz Construction, Patty Hiday, McKee & Gunderson PC, Pro Clean, B&B Groups and Mr. David’s Flooring.

The largest secured creditor is CIMB Bank, which is owed $4.2 million.

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