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Properties Lost to Indianapolis Short Sale and Foreclosures Rise

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By : Clark Raitz    99 or more times read
Indianapolis short sale and foreclosure transactions rose in 2010. It was not only the residential market of the city that got hit by the Real Estate crisis, but also the commercial property market. In the first week of 2011, a number of properties are already up for grabs at sheriff’s sales as foreclosed structures.

The number of both residential and commercial properties under foreclosure and preforeclosure listings in the metro area increased in 2010, and 2011 seemed to be on course to have the same problem judging from the early start in property takeover activities. One of the commercial properties going under the hammer at the start of the year is the high profile Castle Creek Corporate Park.

The office building is scheduled to be offered at a sheriff’s sale after a judge in Marion County approved a request from the lender to foreclose on the property. Castle Creek will be just one of the many properties in the area that are being offered at sheriff’s sale or through Indianapolis short sale after owners have failed to pay their mortgage loans. According to reports, owners of the four-building complex defaulted in June on a loan estimated to be worth $22.6 million.

The property is owned by a group formed by Blue Real Estate, which purchased the property in 2006. Just like most properties in preforeclosure listings, Castle Creek was hit by the ongoing Real Estate crisis as it lost more than 30% of its tenants beginning in 2008 and until last year. Investors reportedly considered providing financial strength to the property, but eventually decided that the risk is too high, given the current state of the economy.

Other commercial properties have been foreclosed and auctioned off during 2010 as they suffer from high vacancy rates. In the case of Castle Creek, the property reportedly had an occupancy rate of 79% as of November 2010. This puts the structure on par with Indianapolis’ vacancy rate for suburban office properties at around 22%.

According to local realtors, a lot of office properties in the city have failed as fewer tenants venture into the area to rent spaces. Most of these office properties are either sold as foreclosures or through an Indianapolis short sale, analysts have added.
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