MONDAY October 8, 2018
Public legal notices begin on page 3
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Daily Record JACKSONVILLE
THE MATHIS REPORT
Project Empire needs 1 millionsquare-foot warehouse
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Mortgage offers details on BB&T Tower renovation
JACKSONVILLE
Empire describes, but does
Daily Record Daily Record
JACKSONVILLE not identify, online home
furnishings retailer Wayfair. BY KAREN BRUNE MATHIS EDITOR
KAREN BRUNE MATHIS EDITOR
Ash Properties through Talara Investment Group LLC paid $24.47 million for the Downtown property.
Ash Properties intends to renovate the BB&T Tower it bought July 24, and a $14.18 million mortgage made in September outlines what is expected. Jacksonville-based Ash Properties, through Talara Investment Group LLC, paid $24.47 million for the 200 W. Forsyth St. property. Transamerica Life Insurance Co. issued the loan to Talara Investment on Sept. 14. Ash Properties won the property at auction in May, beating out more than 300 bids, and closed on the deal two months later. The property had been in the hands of lenders after a foreclosure. The purchase includes the 18-story Northbank tower and a seven-story, 700-space parking garage across Forsyth Street at 111 N. Julia St. The renovation covenant in the loan states that Talara agrees to spend at least $1.5 million in out-of-pocket costs and expenses for deferred maintenance and to renovate, replace, repair and refurbish the property’s external appearance, common areas, restrooms, lobby and other elements, excluding tenant spaces. Talara must submit a detailed written renovation plan for the improvements to the lender within six months of the mortgage date. The work must be completed within two years.
City Council legislation filed Wednesday provides more details about codenamed projects Empire and Glass. Project Empire, a national distributor of household goods, needs a 1 millionsquare-foot warehouse and distribution facility and targeted about 80 acres at AllianceFlorida at Cecil Commerce Center. The project describes, but does not identify, Boston-based online home furnishings retailer Wayfair Inc. The company has not commented about the project, but has been posting job openings in Jacksonville for a “Large Parcel Home Delivery Operation.” Legislation calls for Empire to invest $50 million in real estate and $22 million for machinery, equipment, furniture and fixtures. The city requires a minimum $40 million capital investment in the project site by Dec. 31, 2020. AllianceFlorida master developer Hillwood, based in Dallas, is the city’s master developer at Cecil Commerce Center. Hillwood would pay the city $9,517 an acre for the wooded land for an estimated $757,569, according to the legislation. Empire, through a lease with the project property owner, will pay the cost of constructing and developing the improvements, states the economic development agreement. Empire would create up to 250 fulltime jobs paying an average $33,000 a year, plus benefits, by Dec. 31, 2021. The company would hire logisticians, warehouse receiving and shipping personnel, forklift operators, truck drivers and support staff. The city bill, Resolution 2018-663, proposes to offer a Recaptured Enhanced Value Grant valued at 50 percent of the net increase in real and tangible property
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WORK NEEDED
Under the terms of its $14.18 million mortgage, Talara Investment agreed to repairs and improvements to the BB&T Tower, including reroofing and refurbishing the property’s external and internal appearance.
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The required spending must include short-term expenditures detailed in the loan’s Exhibit C. Those include reroofing BB&T Tower and a dozen improvements that include repainting and repairing the parking garage. “Time shall be of the essence with respect to all obligations of the Borrower with respect to fulfillment of the Renovation Covenant,” says the loan document. Another covenant states that Talara Investment also shall pay in full all unpaid tenant allowances/improvements, listed in an exhibit as $724,052 for five companies that lease space in the building. Those are due within 180
days of the mortgage date. Those comprise Branch Banking and Trust Co.; Hall, Booth, Smith P.C. Inc.; Edwards, Cohen, Dawson, Mangu & Noble; Marshall Dennehey Warner Coleman & Goggin; and Government Employees Insurance Co. Ash Properties said upon the purchase that it wanted to start immediately on improvements. Randall Whitfield, COO of the commercial real estate developer, said work will encompass lobby renovations to include furniture, flooring and décor, bringing the common areas “up to a more modern and open look to genSEE MATHIS, PAGE 2
SEE EMPIRE, PAGE 2
Aldi wins renovation permit Aldi landed a building permit Wednesday to remodel its Southside Square grocery store at 9041 Southside Blvd. at a cost of $664,928. R.A. Rogers Construction Co. is the contractor. Aldi said previously it would close the store Nov. 26 and reopen in the winter. The Germany-based chain operates eight stores in Duval, Clay and St. Johns counties and is reviewing plans for at least three more, including its first in Nassau County.
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