The New York-based investors who own the Chase South Tower building at 451 Florida St. downtown are fighting efforts by their lender to foreclose on the property.
In late May, Florida Street Holdings LLC filed a notice of appeal with the U.S. Fifth Circuit Court of Appeals, challenging U.S. District Judge Shelly Dick’s April 29 ruling that orders the seizure and sale of the 21-story high-rise to satisfy some $22 million owed to the lender, U.S. Bank National Association.
Appellate briefs with the Fifth Circuit have not yet been filed.
Separately, attorneys for Florida Street Holdings have also filed documents with the U.S. District Court for the Middle District, asking Dick to throw out her seizure and sale order as well as the bank’s original complaint against the group.
In that original foreclosure suit, the bank says it is owed some $22 million including, 6.5% interest. It also said Florida Street Holdings has not paid its monthly note on the building since October 1.
In its court filings, Florida Street Holdings questions whether U.S. Bank is the true owner and holder of the promissory note, mortgage and loan documents.
The recent filings in district and appellate court suggest the legal battle over the building could drag on for some time, leaving in question the future of the property. Daily Report has learned of at least one out-of-state investor interested in acquiring the building out of foreclosure. But until the court action is resolved, no such sale can take place.
Florida Street Holdings was formed by a group of New York investors, including Sam Weiss, Mayer Steg, Toby Mandel, Abraham Schwartz and Joseph Brunner. The LLC acquired the 333,000-square-foot building in December 2007, financing the purchase with a $21.5 million loan now held by U.S. Bank.
When it opened in 1968, the Chase South Tower was the city’s tallest and swankiest downtown office tower. Though the building remains a Class A property in the heart of downtown with average lease rates of $20 per square foot, it is today only about 79% occupied—far below average for the downtown submarket. What’s more, it is currently advertising some 84,000 square feet of available space. Until recently, the Camelot Club occupied nearly 20% of that space. The long-time private dining club closed in March.
The adjoining Chase North Tower, which now is known as Riverside North Tower, is separately owned by Wampold Companies.
—Stephanie Riegel
