Khan: Downtown's Laura Street Trio redevelopment deal 'alive but on life support

[Captain Zissou]

Looking good.  Now the real money will have to be spent.  It will be interesting to see how money will be made via ownership of these buildings.  I sense that a way will be found.  The time has come. 

This deal benefits you as much as anyone, Ron. When I wa looking to buy 225 Laura, the prospect of the trio development was the main driving factor, but it looked shakier back then. When the trio turns around, your two properties are going to shoot up in value.

-unrelated- khan is a boss. Only somebody truly awesome would name a company Stache investments.

[Tacachale]

3 Million is s steal for that property. I am really surprised it hasn't been snatched up before now for redevelopment.

IMO, not really.  The property is worthless as it stands and it's the cost to develop the property that's expensive.

If the Trio weren't historic structures it's probable someone would have bought them years and demolished the towers, if only to provide parking for the Barnett Bank Building. Hopefully that doesn't happen this go round. The last several proposed projects have all included the Barnett and the Trio property together so they could share parking.

[PeeJayEss]

Sooo...that's awesome.

[Tacachale]

It is awesome. Hopefully something good will come of this!

[Dapperdan]

Any idea of what the plans are yet?

[PeeJayEss]

I believe this was the last iteration of the plan, but I doubt its final. We'll see.

The plans to renovate the Laura Street Trio and Barnett Bank Building into a bustling, mixed-use development in the heart of Downtown Jacksonville have changed significantly since the concept was first presented in May 2010.

   

• The Barnett Bank Building will house a higher education school and dormitory for an as-yet-unnamed school, said Steve Atkins, managing partner of Linea LLC, the development group that’s pursuing the project.
• A boutique hotel component will be in both the Florida Life and Bisbee buildings and include street-level retail. A restaurant is planned for the Marble Bank Building, and a smaller parking garage than first envisioned will be built on the vacant lot on the corner of Adams and North Laura streets. The smaller parking garage should save about $10 million over the initial concept, Atkins said.
• Apartments are no longer part of the plan.

[/i]

http://www.bizjournals.com/jacksonville/print-edition/2012/08/24/developer-says-evolved-laura-street.html?page=all

Also, from the same article

Atkins said he is negotiating between two hotel flags: Starwood Hotels & Resorts Inc. and Marriott International Inc. The hotel he envisions would have about 145 rooms.

Atkins said he has a construction loan lined up and that acquiring the buildings from the Chicago bank that foreclosed on them in 2008 isn’t the issue. He wants to make sure the project is ready to go before he closes on the property.

So, given that he has closed on the property, if this quote was right, the project is gonna start going. And that will be super to the duper.

[acme54321]

There was un update last year about changing the plan at least partially into a space for an unnamed college or something.

I am curious as to how much of the $9M that was slated for downtown will be going to this project?  I wouldn't be suprised if it was a big chunk of those funds.  I'm also assuming that there are some pretty concrete plans for these buildings in place since Khan bought off on it.

[river4340]

Times-Union

Steve Atkins, who leads the purchasing group and has been involved for years with efforts to buy the buildings, said the Barnett building will become a university-level education center with student housing and that a parking garage will be built in the area. But he said he could give no more details before a major unveiling in two weeks.

Read more at Jacksonville.com: http://jacksonville.com/news/metro/2013-04-03/story/jacksonville-group-buys-laura-street-trio-barnett-buildings-downtown#ixzz2PQEkAld5

[duvaldude08]

Man I really appreciate what Khan is doing for this city. That's why I get pissed when people claim he has some other motive. All billionaires are not greedy crooks. He is really a great guy

[Cheshire Cat]

Man I really appreciate what Khan is doing for this city. That's why I get pissed when people claim he has some other motive. All billionaires are not greedy crooks. He is really a great guy

Mr. Khan is an astute business man.  While all of this is exciting keep in mind that Khan has simply "loaned" the money for the purchase through one of his business enterprises. He has not purchased the buildings.  As such he will likely receive substantial "interest" on this loan.  He also realizes that a vibrant downtown is good for his investment in the Jaguars.  Don't get me wrong, I like the man plenty but lets remember that it is business and a profit making investment for him.  My guess is that he has some knowledge that the 3 million loan is a safe venture because of the 9 million for downtown.  Let's see how much of that money goes to this structure.  It's all good but it's not all altruistic. 

[duvaldude08]

Man I really appreciate what Khan is doing for this city. That's why I get pissed when people claim he has some other motive. All billionaires are not greedy crooks. He is really a great guy

Mr. Khan is an astute business man.  While all of this is exciting keep in mind that Khan has simply "loaned" the money for the purchase through one of his business enterprises. He has not purchased the buildings.  As such he will likely receive substantial "interest" on this loan.  He also realizes that a vibrant downtown is good for his investment in the Jaguars.  Don't get me wrong, I like the man plenty but lets remember that it is business and a profit making investment for him.  My guess is that he has some knowledge that the 3 million loan is a safe venture because of the 9 million for downtown.  Let's see how much of that money goes to this structure.  It's all good but it's not all altruistic. 

Of course. He stated "whats good for Jacksonville, is good for the Jaguars." And yes , its an investment no doubt. As he even states, theres a business side to everything. But do you really think everybody in the world is in it for money? Aside from one spark, there have been several other ventures he's dropped money in that have not been talked about much. He was asked why, and he said because its not about him. We can always say " yeah he's nice but.." I just try to refrain from that. He's a good self-less guy.

[acme54321]

My guess is that he has some knowledge that the 3 million loan is a safe venture

I think this is the most important thing to come out of this so far.  Khan has obviously seen the plan and believes it will succeed.  The guy knows success so hopefully that is a good sign.

[Cheshire Cat]

Duval, at no time did I say Mr. Khan's only motivation was money, nor did I question his motivation in giving the loan.  I simply pointed out that he is an astute business man.  I will add to that the observation that he did not become a billionaire by investing in business opportunities without the potential for a sound return.  The investment works for him at several levels and you can bet he did not loan funds that he was not sure of seeing a return on.  He is too good a business man for that.  Let's not confuse good business with charity.  He has plenty of other ways he has shown charity to this community and we all applaud that.  He can be both astute in business and at the same time invest in things that will help downtown to grow. 

[Cheshire Cat]

My guess is that he has some knowledge that the 3 million loan is a safe venture

I think this is the most important thing to come out of this so far.  Khan has obviously seen the plan and believes it will succeed.  The guy knows success so hopefully that is a good sign.

I tend to agree acme but return on private investment and overall success of the project are two decidedly different things.  Khan made a safe bet on his loan.  Let's hope that those actually doing the project have a solid plan that will work financially providing us with a successful end product.

[thelakelander]

The Trio project appears to be the first of many from a newly formed local REIT focusing on urban infill.

Press Release:

Jacksonville Based REIT Acquires Laura Street Trio and Surrounding Properties

Jacksonville, Fla. â€" SouthEast Holdings, a Jacksonville based real estate investment trust (REIT) has purchased a collection of coveted historic downtown core properties for an undisclosed amount announced the group’s president Steve Atkins.

The acquisition includes the Barnett Bank building, an eighteen story tower located on the corner of Laura and Adams Streets, along with the Florida Life, Bisbee and Florida National Bank buildings, commonly referred to as the Laura Street Trio. The collection of buildings has been viewed by many as the key to downtown Jacksonville’s successful revitalization of its urban core.

“I am incredibly gratified by the tireless efforts put forth by our entire team. Everyone we have worked with and the community alike have been committed from the beginning of this effort with real enthusiasm for this project,” Atkins said. “It’s a new day for Jacksonville”.

According to Atkins, this purchase by the REIT is a strategic move made in support of a much larger initiative to be revealed in the coming weeks. Today’s announcement is coupled with information released by the group yesterday detailing the reorganization of Atkins’ development firm, finalized with a merger agreement of related interests in multiple real estate companies. Atkins Group, Inc., AGI Equities, Dav-Lin Construction Company and Linea, LLC have been consolidated to create SouthEast Development Group, LLC.

The new organization will continue the group’s licensed operations as a Certified General Contractor in the states of Florida, Georgia, Alabama, Mississippi, North and South Carolina and has been qualified for operations in Tennessee and Kentucky. Specializing in design-build construction methodology, company principals have more than 80 years of industry experience and a resume of more than $400 million dollars in total development volume throughout the region. "This merger is a major step in the growth of our company and fully anchors our regional footprint in the southern United States", said company principal Woody Garner. “The SouthEast brand is truly reflective of who we are, our history and where we’ve made our mark in the industry.

Over the past twenty years, our group has built a tremendous resume of work from the Carolinas to South Florida, we want to build on that foundation”.

SouthEast Holdings, the affiliated REIT, will primarily make strategic investments in the region, with a particular focus on prime urban-centric, infill style developments. “A REIT provides the optimal vehicle to employ capital investment in the areas we need it most”, said Steve Atkins, Principal and Managing Director of SouthEast, “focusing on city-centers and the unique opportunities they provide can be challenging in the current economic environment. If we can assist with equity investments in key marketswhere traditional financing has been frozen for the last few years, we can facilitate moving projects forward in areas that are ready for unprecedented growth. REITs provide that type of focus, with great upside potential for investors. Our broad business base combined with the strength of the REIT will make for a very successful union. As the market continues to improve, this consolidation of development and investment interests under one flag will make us more competitive and allow the company to expand in many different ways”.

The newly affiliated companies are expected to generate business synergies in the design-build arena and drive a significantly improved cost structure that will create a competitive position in the market. With a successful history in the market sectors of commercial office, healthcare, retail, institutional and mixed-use, SouthEast is now poised to add multifamily and hospitality projects to its portfolio within the next 24 months.

Announcements regarding the group’s plans for the properties and the larger initiative will be revealed at a private event on April 17th, coinciding with the OneSpark Festival held from April 17th through April 21st in downtown Jacksonville.

SouthEast Development Group and affiliate SouthEast Holdings will continue to base their operations in Jacksonville, Florida.