Just goes to show we should never put all our redevelopment dream eggs in one basket. Instead of shooting for the one trick pony, focus on attracting the small urban pioneers who can fill one storefront or building at a time.
Quote"FOR US, THIS IS NO RISK."
Cameron Kuhn to the Times-Union shortly after buying his second downtown Jacksonville building in less than a month, Oct. 30, 2005
Quote"WHEN I COME INTO A MARKET, I MAKE IT SNAP, CRACKLE AND POP."
Kuhn to the Times-Union, Dec. 16, 2005.
Quote"I NEVER HAD ANY DOUBT. I DON'T FUNCTION IN FEAR."
Kuhn, after reaching a preliminary deal with the city and the Landing on parking spaces, to the Times-Union, March 24, 2006.
Quote"TO A DEVELOPER, THE LOSS OF TIME CAN DESTROY A PROJECT AND IN BOTH OF THESE INSTANCES NOT BEING ABLE TO GET APPROVAL AND INDECISION BY JEA HAS COST ALL OF OUR PROJECTS TIME AND MONEY."
Kuhn in a news release critical of Jacksonville preservation officials and the city-owned utility, June 19, 2007.
Quote"I WILL LOSE SOME BUILDINGS."
Kuhn to the Orlando Business Journal, Jan. 24, 2008
Quote"MY EGO WAS TOO BIG ... QUITE FRANKLY."
Kuhn to Orlando News 13, Feb. 7, 2008
QuoteA tale of two cities
CHICAGO Kuhn started his first redevelopment project at age 19, taking on an old warehouse in his native Chicago. He talked the owner into letting him fix it up, break it up into an office warehouse and lease the space out. Kuhn did the work himself and eventually bought the place with rental income. From 1979 to 1991, he did similar work, turning buildings into office space, as well as commercial or residential lofts. He left at 31, looking to retire.
ORLANDO Kuhn has finished more than 20 rehabilitation projects in Orlando, starting with the Central Arcade in 1994. Projects have ranged in scope, but the primarily focus has been on older, rundown buildings. City leaders give Kuhn the bulk of the credit for jump-starting a once-fledgling downtown. Kuhn entered the new construction market with the Plaza, a three-tower complex of office space and residential that was supposed to include a yet-to-be built movie theater. In April, Kuhn was the lone bidder in a bankruptcy auction and paid $34 million for Church Street Station, a once-bustling entertainment hub in downtown Orlando. Financial woes have hit his Orlando projects, too. He's facing foreclosures, contractors looking to get paid and suits from current and former tenants.~~~
SUNTRUST TOWER
THE SALE: $37 million for the tower and $5.5 million for the right to buy an adjacent lot in September 2005.
THE PLANS: Renamed $250 million project River Watch at City Centre, turned SunTrust into office condos and planned 33-story hotel/condo tower and parking garage.
WHAT'S DONE: SunTrust converted to office condominiums; about half the units were sold. Building the 33-story tower is on hold. Several deadlines have passed on the garage.
WHAT'S HAPPENING?: Foreclosure
OLD BARNETT BANK BUILDING
THE SALE: $4.95 million for the building in October 2005.
THE PLANS: Plans were for homes and offices in the building renamed One12, though the project has been in flux.
WHAT'S DONE: Hotel chains were looking at the property last year. Most of the interior of the building has been demolished and Kuhn received a $900,000 city grant for completing exterior work on the building.
WHAT'S HAPPENING: Foreclosure
DYAL-UPCHURCH BUILDING
THE SALE: $4.5 million for the building in December 2005.
THE PLAN: Rename the building 6 East Bay, renovate some of the floors and keep the building as office space.
WHAT'S DONE: Most renovations were done before Kuhn bought the building, though one would-be tenant is tied up in court with Kuhn over not being able to move into the building.
WHAT'S HAPPENING: For sale
THE LAURA TRIO (Bisbee, former Florida Life and former Marble Bank buildings)
THE SALE: $6.4 million in February 2007.
THE PLANS: Planned to turn the buildings into retail and office space, along with building a parking garage on a lot that was part of the sale.
WHAT'S DONE: Very little. Kuhn defaulted on a $1.05 million historic grant to restore the outside of some of the buildings and thus never received the money.
WHAT'S HAPPENING: Foreclosure
full Times Union article: http://jacksonville.com/tu-online/stories/030808/met_254917892.shtml (http://jacksonville.com/tu-online/stories/030808/met_254917892.shtml)
Don't lock your trust in one person indeed; and...don't be so quick to embrace all of the golden eggs laying deliciously and enticingly in one basket. It all did seem too quick, and "too good to be true." But who knows, he is also a man who is known for not going down for the count. I truly believe he is getting up, dusting himself off, taking a deep breath, and initiating plan #2 to bounce back and even try to keep his so called empire if possible. I don't think that will happen, but I don't think that we have heard the last from Cameron Kuhn.
As someone mentioned in a thread @JOL, With the economy and the market like it has become , this could happen to potentially any investor/developer.
I seriously doubt Mr Kuhn embarked on this endeavor, with the intent of ending up where it stands now, and as stated, I dont think this is the last we will hear of him. Hopefully he can initiate a plan B, and emerge from this, somewhat without losing everything. I feel it unfortunate , to say the least that he climbed so high, then fell. I wish him the best.
I saw first hand living in Downtown Orlando from 2000 - 2005 what Kuhn was capable of developing. It is a true shame that he will not be able to come through on his promises, but the intent to help better our Downtown like he vastly helped transform DT Orlando was genuine, in a very over zealous attempt. I too wish him the best and have a feeling he will make it back and we will hear from him in our town one day.
I lived in Orlando from 1992-2001 .. and saw it as well. :) Mr Kuhn will bounce back.. and I do think he will re-emerge here. =)
Mr Kuhn will bounce back.. and I do think he will re-emerge here. =)
[/quote]
I definately agree with you. I really felt sorry for the man. He had big dreams for this city. I think he'll come back. Never give up and never say die, Mr. Khun 8).
QuoteDowntown Orlando movie theater? Just a reminder of bubble that burst
Beth Kassab | Business Columnist
May 2, 2008
Much was built on speculation in downtown Orlando as the real-estate market bubbled up to its eventual heady froth. Condos. Offices. Retail storefronts.
The most unusual example of unchecked exuberance? A 12-screen movie theater.
The cinema's shell is sitting empty along Orange Avenue as part of The Plaza developed by Cameron Kuhn.
It looks as if it will be that way for quite some time, now that AMC Theatres announced this week that it is abandoning plans to take over the space.
The theater was once heralded as a central piece in Orlando's urban revival -- so important that five years ago Orlando Mayor Buddy Dyer offered $3.5 million over 10 years to any operator willing to turn down the lights and turn on a projector there.
Two years ago Dyer singled out the movie theater in his "State of Downtown" address.
"And as we speak, the finishing touches are being put on the Premiere Trade Plaza," he told people who attended the Oct. 4, 2006, speech. "In fact . . . if you reach into the bag that was on your seat you'll find a pair of movie vouchers, courtesy of Kuhn Management, for our city's first downtown movie theater in decades opening early next year."
If you're still holding on to those tickets, you might as well toss them.
The city has moved on to what it sees as bigger and better projects, such as a new performing-arts center and Orlando Magic arena.
Gone are the days when city officials, the downtown business crowd and this newspaper touted the theater as the draw that would lure suburbanites to mingle with high-rise condo-dwellers and stimulate the foot traffic vital for successful restaurants and shops.
If the theater was so important just a couple of years ago, why isn't it just as essential today? And shouldn't it be alarming that a deal that was promised didn't get done as we are surrounded by empty condominium units?
Earlier this week, a city spokeswoman said it would be "great to have that amenity downtown," but the need has faded in light of plans for the new downtown venues.
A performing-arts center and new arena will certainly make for a more vibrant and diverse downtown night life.
But decent seats at a Broadway show or an NBA game can run at least $50 -- or significantly more.
That's not something the urbanites who do live in the high-rises will be willing to pay for every night or even every week.
Downtown needs a broad range of entertainment options if people are truly going to live, work and play there.
Folks at City Hall certainly know that.
But they are in damage-control mode as they try to protect downtown's image in an increasingly dreary real-estate climate.
It's the old "focus on the good and pretend you don't see the bad" routine.
Since the market bubble popped, it's apparent there isn't enough foot traffic yet to support a theater. If there were, someone would have snapped up that sweet incentive deal by now.
And many of the people who do live downtown are likely just as satisfied grabbing a Netflix movie out of the mailbox and putting their feet up in front of their personal flat screen, anyway.
In the meantime, the latest owner of the theater space, RP Realty Partners LP, is stuck figuring out what to do with a big empty space with concrete sloped floors perfect for stadium seating.
http://www.orlandosentinel.com/business/columnists/orl-kassab0208may02,0,2564250.column
QuotePlans for downtown Orlando movie theater fade to black
Plans for a movie multiplex in downtown Orlando are on hold and may be scuttled for good, disappointing nearby residents and business owners but creating little more than a yawn at City Hall.
AMC Theatres spokesman Andy D'Orio said Wednesday that the Kansas City, Mo., company has opted out of its agreement to manage a 12-screen multiplex in The Plaza office towers because of a lack of progress in completing interior work for a second-floor theater complex facing Orange Avenue.
"We're out of the deal," D'Orio said.
full article: http://www.orlandosentinel.com/business/columnists/orl-theater0108may01,0,2108982.story
QuoteDeveloper's downtown projects belong to lender now
Cameron Kuhn's properties found no buyers at auction.
By David Bauerlein, The Times-Union
JDI Realty of Chicago lent tens of millions of dollars for developer Cameron Kuhn's headfirst dive into redevelopment of abandoned buildings in downtown Jacksonville.
Now, JDI Realty owns those landmarks after no one bought them Wednesday at a foreclosure auction.
The auction came after JDI foreclosed on Kuhn's ownership of the old Barnett Bank building at 112 W. Adams St. and a group of buildings known as the Laura Street Trio. The trio - the Bisbee, former Florida Life and former Marble Bank buildings - are on Laura Street between Adams and Forsyth streets.
Court judgments in the foreclosure cases determined Kuhn's companies owed JDI $9.5 million for the former bank building and $7.2 million for Laura Street Trio when unpaid loans, interest and fees were tallied.
Kuhn bought the Laura Street buildings for $6.4 million in 2007 from the Jacksonville Police and Fire Pension Fund.
John Keane, executive director of the fund, said Thursday the organization isn't interested in buying back the property. He said the downtown market is bleak.
"I think housing has come to a screeching halt," he said. "For offices, there's some space in the downtown area, so there's not much motivation to build a new building."
JDI Realty did not return phone calls or respond to e-mails about its future in Jacksonville.
Later this month, another foreclosed Kuhn building will be up for bid in an auction of the SunTrust Tower, located across the street from The Jacksonville Landing. Kuhn bought the downtown tower in 2005 and turned it into office condominiums, selling about half of them.
JDI filed a foreclosure lawsuit and won a $17.3 million judgment for unpaid loans on that venture. The auction is scheduled for Aug. 25.
david.bauerlein@jacksonville.com, (904) 359-4581
Wow. An auction and not one buyer for any downtown property.
I was shocked at that too, Lake. Wish I had the means, I would have bought the old barnett building and made it apartments. Did you notice Keanes comments about Downtown? he made it sound dismal.
I noticed. I don't think its that bleak, but you do have to get a little creative in the type of projects intended for the core.
On the other hand this could be good for the small time developer with limited capital. These buildings will likely sell for much less than the previous auction price leaving a nice grab for the little guy wanting to make a difference.
It bleak for what he wants to do - condos or office. I actually think that apartments would do well - and do more for downtown than any expensive condo complex.
Quote from: Steve on August 08, 2008, 10:15:31 AM
It bleak for what he wants to do - condos or office. I actually think that apartments would do well - and do more for downtown than any expensive condo complex.
...and is there no market for actual loft space in Jacksonville? I mean: gut the building, leave the wonderful bones, install some infrastructure and leave it as true raw open space for owners to do what they like. Wouldn't that appeal to a broader market than upscale condos? I see many properties referred to as "lofts" but so few are, and I've heard various potential urban dwellers bemoan this fact.
Being neither an architect nor a real estate developer, I'm sure there's some obvious flaw that I'm not seeing. ???
I agree where you're coming from hoop. I am neither as well, but in the case of the Barnett tower. If a little under 10 million is owed. Let's say a developer can come in and get it at a discount on the auction block for 8 million. Spend a million gutting the lofts and putting the necessaries in the building and sell the true loft space at an affordable working class price. I would assume there is somewhere around 100 units in the tower. If they could sell them in the $150,000 range, which would sell. I would jump all over that price. Simple math tells me $150,000 x 100 units = 15 million. Profit. I am sure there is more costs involved, but many people on this site are strong advocates of affordable real estate in Downtown and not a $400,000 loft at Churchwell or $500,000 condo on the river at BP2. These buildings seem to provide that opportunity.
Truly amazing.
You would think John Rood's company, Vestcor would buy the Barnett for another Carling / 11E. project. Maybe, he is waiting for a better deal, though.
Hasn't a lot of gutting work already been done? I know all the windows have been replaced, at considerable expense no doubt.
What is the square footage of this building? I use to know, but I have forgotten. I think around 100 units were planned originally.
The Laura trio has had one deal fall through after another.
It would cost considerably more than $1 million to rehab the Barnett into a habitable condition for apartments. Also, you need very deep pockets to make this sort of deal happen these days because the banks are afraid of their own shadows when it comes to making loans for real estate of any kind. Basically, you would have to bring a lot of your own money to the table.
I understnad a million was a lot lower than necessary, but the point was a developer coming in and offering a loft space and not spending the money on flooring, cabinets, appliances etc. As a buyer I would seriously consider buying a "shell" in the $130 - $150 / sq. ft. range and finishing it out myself. I did not realize the building was in that bad of condition. Being someone who would be interested, I would want a developer to come and finish out the lobby area and provide me with four walls and a concrete floor and I can do the rest with. Maybe there are not that many people out there that would like to purchase a shell, but I am one.
I keep looking at the Churchwell prices at $330 / sq. ft. and even the studio I purchased at BP2 at $260 / sq. ft and the opportunity to purchase a shell in the mid $100's a square foot plus plus turn key costs and it is appealing.
I agree with Basstacular, however I'd be more interested in the building across Laura St. from the Barnett Building...part of the trio. One loft per floor...could be a stellar project vs. the Barnett Building which (in my opinion) is way too big to be an appealing "loft" project. Much better suited for apartments or more traditional condos.
QuoteJacksonville Bank buys Dyal-Upchurch building for $100
The Jacksonville Bank has taken back ownership of the Dyal-Upchurch building for $100.
The building at 6 E. Bay St. had been owned by developer Cameron Kuhn. It went to auction Jan. 22, but there were no other bidders.
full article: http://jacksonville.bizjournals.com/jacksonville/stories/2009/02/02/daily48.html
Did they forget some zeros in that figure?
Wow!
That building already has tenants right?
Was Jacksonville bank one of the lien holders? That might explain it.
Otherwise, the building was purchased for over $4 million by Khun, but apparently only valued at $3.5 million today. It's conceivable that, regardless of who owns the liens, theres enough debt on the building to make it a worthless investment.
Then is it right to say that one of us could have bought that building (had we known that there was an auction)?
Heights Unknown
Won't that kill the comps downtown?
stephendare: do you think $18/sf is overpriced or underpriced?
The "Dyal-Upchurch for $100" story is on the front page of CNN right now.
http://www.cnn.com/video/#/video/us/2009/02/10/lindgreen.cheap.building.wtlv
I can't believe how bad journalism is getting. That video report is typical garbage reporting - spending 2 minutes talking about how a buidling "sold" for $100, and then spending the last 20 seconds halfway explaining why they just lied to you, and in fact it wasn't really sold for $100 at all.
As I suspected in my above post, it turns out that Jacksonville Bank was the lien holder foreclosing on the mortgage in the first place. This means that Jax Bank didn't spend $100 on the building, they actually "spent" the $4,000,000+ they originally loaned Kuhn. Since no one else wanted to spend that much at auction, Jax Bank is simply taking over the property they already paid for.
I can't f'ing believe this got all the way to the front page of CNN. This is a typical real estate foreclosure. No one bought a building for $100. They essentially bought it for over $4 million.
They did. It was a foreclosure auction. That's the law.
Generally, all properties that are foreclosed in Florida have to go through public auction. Usually, the mortgage holder is the only bidder.
That's what makes it all the more frustrating that the news is reporting this nonsense. What happened was an extremely typical foreclosure. Nothing more.
Quote
Friday, April 30, 2010 | Modified: Monday, May 3, 2010
Former real estate giant sheds debt, pounds and plans his return
Orlando Business Journal - by Anjali Fluker Staff Writer
Just three years ago, Orlando real estate mogul Cameron Kuhn was on top of the world.
The president of Orlando-based Kuhn Development Co. LLC in 2007 completed The Plaza, a $160 million, mixed-use development featuring a long-awaited downtown movie theater.
He then turned around and bought the struggling iconic Church Street Station entertainment complex in downtown for $34 million out of bankruptcy that same year, leaving many to view him as a white knight.
But not long after that, he found himself overwhelmed by $220 million worth of debt, liens, lawsuits and foreclosures.
He had about $650,000 per month in overhead at his Church Street Station office with 70 employees, as well as high mortgage payments on his ambitious downtown projects, and vendors and contractors filing liens because they weren’t getting paid on time.
His solutions: Reducing costs by laying off all but four staffers, allowing the banks to foreclose on various commercial properties in Orlando and Jacksonville, selling off some properties and filing for bankruptcy reorganization for his related firm, The Plaza LLC, of which he's a minority owner. These actions reduced his company's debt and repaid its creditors.
As those lawsuits, foreclosures and the bankruptcy case worked through the courts, Kuhn turned to improving his personal life.
He gave up his private helicopter for an energy-efficient Mini Cooper and last March began a 47-day bicycle trek across the southern U.S., from San Diego to Jacksonville. It proved to be quite a physical challenge due to his weight of 344 pounds. But Kuhn ended the trip 15 pounds lighter and lost another 60 pounds since then.
Moreover, he decided he was ready to get back to business basics as an entrepreneur. So he chipped in $33,000 for his wife, Traci Sihle, to launch The Crepe Co. LLC, a street-vendor operation in downtown Orlando. Kuhn, 50, also began dabbling in global commodities, looking into selling soy meal overseas.
And now he’s stepping back into the real estate world more cautiously, wiser and as an owner-operator rather than a CEO. “I’m out of debt and I have no more personal obligations,†Kuhn said. “I’m not going to build any more Plazas â€" I’ll work on one building at a time, finish that and then move onto the next one.â€
He wants to invest in new projects with little debt and private investor money. “I did some really great things and some not so great, but I learned from it all. I believe in me, and for that reason, I feel very optimistic.â€
The rules of the real estate world have changed, he said, and the 80 percent loan-to-value ratio is no longer an option. That’s why he believes he’ll be able to keep his sights on a single project and not “take my eyes off the ball,†which was what got him into trouble in the first place, he said.
His new philosophy has drawn the attention of some of the banks that repossessed his properties. Some, in fact, have asked him if he wants to buy back the properties, Kuhn said.
Despite his past financial troubles, Kuhn has a proven track record of success in renovating and redeveloping small, older commercial buildings in downtown Orlando into vibrant and tax-producing operations, said Frank Billingsley, economic development director for the city of Orlando. In fact, Kuhn has done about 20 such projects throughout downtown since 1994.
“He had a knack for seeing potential in abandoned or underused buildings, and his work has had a tremendous impact on downtown,†said Billingsley, who’s glad Kuhn wants to get back into developing small projects. “It’s a logical and good strategy for Cameron to take.â€
Kuhn even has earned respect from those who were pitted against him in court. Orlando attorney Denise Dell-Powell, who represented a lender on one of Kuhn’s former developments, said she believes he will make it back into the real estate world.
“He really tried to do the right things, find a buyer and work with the bank, but the debt was too much,†Dell-Powell said. “But he knows what’s going on with Orlando real estate. I think people will lend money to him again.â€
Cameron Kuhn
Title: President, Kuhn Development Co. LLC
Contact: (407) 540-9966; ckuhn@kuhncompanies.com
afluker@bizjournals.com | (407) 241-2910
Read more: Former real estate giant sheds debt, pounds and plans his return - Orlando Business Journal
http://masshightech.bizjournals.com/orlando/stories/2010/05/03/story5.html
Interesting. I'm eager to see what he moves onto next. Honestly, I like the guy and respect his tenacity. He just bit off way more than he could chew right before the bottom fell out of the market. It says a lot about his resiliancy for him to take care of his debt and his personal life with the mindset of getting back into the game.