Molasky Group completes $4M purchase of Barnett Bank building

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  • | 12:00 p.m. February 21, 2017
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In a big step toward redevelopment of central property Downtown, the deed was recorded last week for The Molasky Group of Cos.’ $4 million purchase of the Barnett Bank building.

The Las Vegas-based company bought the building, at 112 W. Adams St., through PH LLC. The deed was made Thursday and recorded Friday.

Molasky bought the building from Stache Investments Corp., led by Jacksonville Jaguars owner Shad Khan. Stache had taken title to the property in September after foreclosing on it.

The 18-story, about 160,000-square-foot structure was built in 1923, property records show.

Together with the Laura Street Trio at Adams and Forsyth streets, the Barnett building is considered pivotal in efforts to redevelop a vacant area of Downtown into apartments, retail, a bank office and a hotel.

The developers request $9.8 million in incentives.

The Downtown Investment Authority recently approved $5.8 million for Molasky and developer Steve Atkins to redevelop the buildings.

Atkins controls the Trio structures. Together, the Barnett building and Laura Trio comprise about 320,000 square feet.

The authority approved $4 million from the Downtown Historic Preservation and Revitalization Trust Fund and a $1.8 million Recapture Enhanced Value grant. That grant would rebate 50 percent of the property taxes generated by the project for 20 years.

None of the funds will be transferred to the developers until the work is complete and the occupancy certificate is issued.

On top of that, City Council will consider an ordinance for a $4 million redevelopment grant.

When completed, the Barnett Bank building will have a bank, office and retail space and about 100 market-rate apartments.

The Laura Trio is slated for transformation into a Courtyard by Marriott hotel, bodega market, café, restaurant, rooftop bar and retail office space.

In addition, a 550-space parking garage is to be built by the developers at a cost of $11 million on city-owned property.

The city will operate the garage and lease 250 spots to the developers and leave 300 for other customers.

Atkins had borrowed $3 million from Stache in 2013 to buy the Barnett building. A Circuit Court judge ruled in favor of Khan’s company in a foreclosure action after Atkins didn’t make payments.

Atkins has been working on the Barnett and Laura Trio projects since he presented the project in 2010.