TD Bank is foreclosing on mortgages on eight parcels in Flagler Center, an office park in South Jacksonville near Old St. Augustine Road between Interstate 95 and U.S. 1.
The properties were part of a $136 million sale to San Francisco-based Farallon Capital Management LLC in 2018.
The plaintiffs are Flagler 100 and 200 Associates LLC, Flagler 300 Associates LLC, Lakeside I and II, Associates LLC Lakeside IV and Lakeside V Associates LLC, FREP II Holdings LLC and Lakeside III Associates LLC and CPPM FC LLC.
According to documents filed with the Duval County Clerk of Courts, the properties will be auctioned Aug. 14 to the highest bidder for cash.
The property in the complaint is Gran Park at Jacksonville east of Interstate-95 south of Old St. Augustine Road.
The parcels comprise:
• Flagler 100 and 200 Associates LLC, two office buildings and a utility building at 12735 W. Gran Bay Parkway Unit 100 and 200. They total 155,000 square feet.
• Flagler 300 Associates LLC, a 136,000-square-foot office building at 7159 Corklan Drive.
• Flagler 400 Associates LLC, a 99,000-square-foot office building at 12854 Kenan Drive.
• Lakeside I and II Associates LLC, a 118,000-square-foot office building at 12740 Gran Bay Parkway.
• Lakeside III Associates LLC, a 117,000-square-foot parking lot at 0 Gran Bay Parkway.
• Lakeside IV and V LLC, a 148,000-square-foot office building at 12926 Gran Bay Parkway.
FREP II Holdings is the guarantor for the mortgages; CPPM FC is the property manager, according to the complaint.
In a complaint for foreclosure filed by TD Bank on May 3, 2024, the bank alleges that the defendants executed loan agreements and promissory notes totaling $196.2 million dated Feb. 7, 2022.
The complaint says the borrowers have made no payments since December 2023. It further states that the borrowers are insolvent, unable to pay their ongoing obligations to TD Bank and other creditors and have no equity in the mortgaged properties.
TD Bank further states that on or about Dec. 5, 2023, and Feb. 28, 2024, it sent Notices of Default to the defendants.
The defendants also informed TD Bank they are unable to pay more than $1.5 million in real estate taxes for 2023 on the property, according to the complaint.
“TD Bank is owed the principle sum of $83,050,000 together with accrued interest, default rate interest, attorney’s fees, expenses and costs,” the complaint states.
Owens Realty Services was appointed receiver for the property May 15, 2024
The auction is scheduled electronically on duval.realforeclose.com at 11 a.m. Aug. 14.