Jacksonville, Fla. – Barnett Tower, LLC, a single purpose entity formed by SouthEast Holdings, LP has consented to the foreclosure of the Barnett National Bank Building to Stache Investments Corporation. The move, intended to prevent further costs of litigation in the current stalemate of downtown development will free the building of more years of inaction.
Barnett Tower, LLC acquired the Barnett Building in March 2013 utilizing a $3,000,000 mortgage issued by Stache Investments. While the original intent for the property was development through a joint venture with Stache, those plans were later terminated. Through a new partnership with Nevada-based Molasky Group of Companies, SouthEast presented comprehensive plans, including all private equity and commercial funding for the adaptive reuse of the building to the City of Jacksonville in September of last year. This included a cash deposit of over $3,000,000 held in escrow for the payoff of the mortgage to Stache Investments, following approval of the project by the City.
On January 27, 2016, the City of Jacksonville announced that funding for all projects in downtown would be placed on hold until such time as the City could complete financial reforms of its public pension program, now scheduled to be addressed by voter referendum on August 30, 2016. The hold on city funding specifically includes the Barnett, Laura Street Trio, Jacksonville Landing and the Shipyards projects. While SouthEast and Molasky continued to exercise patience and work with the City in positioning the Barnett for redevelopment following a successful resolution of pension reform, Stache Investments chose to advance the foreclosure of the property.
To avoid any further litigation of this matter, as of July 28, 2016, Barnett Tower, LLC consented to the foreclosure of the Barnett Building to Stache Investments.
SouthEast Principal and Managing Director Steve Atkins released a statement saying, “We support the Administration’s efforts for pension reform and hope that through its successful resolution, everyone’s goals for downtown investment can be realized.” “We will continue our focus on the Laura Street Trio as the catalyst for the revitalization of Jacksonville’s Central Business District. While the opportunities within our downtown have never been greater, so are the challenges to achieving success. Jacksonville must continue to support new development in downtown if it is to compete with national peers that have and continue to invest in dynamic city-centers.”
Plans for the Laura Street Trio await approval by Jacksonville’s Downtown Investment Authority and City Council.
SouthEast Group is a commercial real estate firm based in Jacksonville, Florida, providing a full complement of development services and asset management across the southeastern region of the United States.
SouthEast is one of the only active Community Development Entities (CDE) in the region. The company was certified by the Community Development Financial Institutions Fund (CDFI Fund) of the U.S. Department of the Treasury in December 2013, to serve the Northeast Florida/Jacksonville MSA, including Duval, Clay, St. Johns, Nassau and Baker Counties. SouthEast Community Investment Fund, LLC is positioned to provide “community-centric” planned development support with targeted investments through tax-credits, federal subsidies and Public-Private-Partnerships.
The Molasky Group of Companies is a 65-year old firm with over $2.5 billion in development volume across the United States, with representation in all market sectors as a proven national firm with a background specialized in government supported developments and Public-Private-Partnerships.