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Jax Daily Record Thursday, Jan. 4, 201806:50 AM EST

The Cawton Report: $38 million in financing secured for Barnett

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“There are a lot of good things planned for 2018,” says developer Steve Atkins.
by: David Cawton Associate Editor

Owners of the historic Barnett Bank Building in Downtown have secured about $38 million in financing for the property, while transferring ownership of the building into a new limited liability company as construction continues on the $90 million redevelopment project.

Two mortgages for the property at 112 W. Adams St. were executed and recorded with the Duval County Clerk of Courts on Dec. 29.

The first mortgage is between Barnett Tower 2 LLC and three lenders, including $10 million from New Orleans-based Enhanced Capital New Market Development Fund 84 LLC; a $7.7 million loan with New Markets Investment 110 LLC of Chicago; and $9.8 million with UACD Sub CDE 34 LLC, based in Baltimore.

Another mortgage for $10.5 million is with Las Vegas-based U.S. Bank.

In addition to the mortgages, the development group, made up of The Molasky Group of Cos. and SouthEast Development Group, transferred ownership of the building to a new company, Barnett Tower 2 LLC.

Through a deed made and recorded Dec. 29, PH LLC sold the property for $4 million to Barnett Tower 2 LLC.

The Molasky Group purchased the building through PH LLC in 2016 for the same price from Jacksonville Jaguars owner Shad Khan’s Stache Investments Corp. after a previous attempt to redevelop the building failed.

Steve Atkins, SouthEast Development Group principal and managing director, said the latest sale was to “clean everything up, since the financing has come through on the project.”

Atkins, through Barnett Tower Holdings LLC, is the manager of Barnett Tower 2 LLC.

He said the project will take major steps in 2018 now that it has secured incentives and financing.

“There are a lot of good things planned for 2018, and we can’t wait to announce it all,” Atkins said.

Last year, the group was awarded $9.8 million in government incentives to offset construction costs, which Atkins said was roughly 10 percent of the estimated cost of the project.

The mortgages and the property sale are the latest steps for Atkins and Molasky.

In late December, the group and general contractor Danis Builders LLC applied for $22.4 million in building permits.

The permits dated the building’s initial construction to 1926.

New fencing and signage have been installed, blocking the sidewalks surrounding the building to protect pedestrians from construction hazards and to advertise the project.

The Barnett, as Atkins calls it, will have 100 market-rate apartments and office space, with a financial institution, identified as Chase on preliminary sign plans, as the anchor tenant.

The new signage directs prospective residents to preregister to lease at what Atkins said will be called The Residences at The Barnett.

Atkins previously told the Daily Record he expects the construction to be completed by December, as work on the adjacent Laura Street Trio begins.

Jaguars the hottest ticket in town

If you haven’t purchased a ticket for Sunday’s NFL Wild Card round playoff game in Jacksonville — the first time in 18 years the stadium has hosted a playoff — good luck.

Tickets for the first home playoff game hosted by the team since Jan. 23, 2000, sold out last week. The Jacksonville Jaguars are hosting the Buffalo Bills, another team ending a long playoff drought, at 1 p.m. Sunday at EverBank Field.

Season ticket holders paid an average of $10 more than their regular season prices.

An additional 3,501 seats previously covered by tarps, along with 1,200 general admission tickets for standing room only sections, were priced at $52 and sold out within minutes.

Since then, prices skyrocketed on online secondary ticket marketplaces like StubHub and Ticketmaster.

As of Wednesday, the most inexpensive tickets, for standing room only, were selling for $230- $275. Some premium seats are going for more than $4,500.
 

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