The
proposed buyer: city of Norfolk
The
seller: City Walk One LLC
The
property: a privately-owned parking garage in downtown Norfolk
The
price tag: $10 million
The
deal: Intriguing
Is
this deal so Norfolk can add another parking garage to its portfolio?
Or does this deal portend the sale of the Bank of America building to
a pack of local investors?
Norfolk
City Council will decide the outcome at tonight's meeting.
The
property, a parking garage with 785 spaces and ground floor retail
space, is bounded by Main St. on the south, Plume St. on the north
and Bank St. Some of the shops include Grace's Tailor Shop, the
Gourmet Gang and Subway.
It
is located across from the Bank of America building, which is the
owned by the same company that owns the parking garage, At One
Commercial Place LLC, based in Hartford, CT.
Here's
the intrigue.
According
to city documents, the city will buy the property from City Walk One
LLC for $10 million, not from At One Commercial Place LLC.
City
Walk One LLC, according to city documents has agreed to buy the
property from At One Commercial Place LLC and At Two Commercial Place
LLC, the owners of the property, prior to selling the property to the
city of Norfolk.
The
purchase and sale agreement between City Walk One LLC and the owners
of the property is dated Oct. 9, 2015.
City
records show that At One Commercial Norfolk LLC bought the parking
garage and the Bank of America property in 2011.
According
to city records, the parking garage and retail space is valued at
$7.7 million and the Bank of America property is valued at $36.3
million, based on the city's most recent assessment in July.
What
do we know?
We
know Buddy Gadams, president of Marathon Development Group, and his
partners have bought numerous properties in downtown Norfolk and
turned them into apartments.
We
know Gadams has cut deals with the city to have his tenants park in
public parking garages throughout downtown.
We
know Gadams needs parking spaces for his tenants. That's part of his
pitch: live downtown and get a parking space as part of your lease.
We
know the owner of the parking garage, At One Commercial Place LLC,
has agreed to sell it to a limited liability company whose name is
City Walk One LLC, whose address is listed as 130 W Plume St.
We
know the city has agreed to buy the parking garage, subject to city
council approval, from City Walk One LLC for $10 million.
We
don't know if At One Commercial Norfolk LLC has also sold the Bank of
America property to City Walk One LLC or another firm.
But
it seems probable.
It
also seems probable that At One Commercial Norfolk LLC would sell
both properties as one package rather than selling each property
separately.
We
don't know if City Walk One LLC is a shell company set up by Gadams,
although the developer does have a history of creating a limited
liability company for each property he buys and owns.
It
is also likely that the financing of the purchase of the two
properties would only work if the city agreed to buy the parking
garage, thus reducing the debt and mortgage of a purchase by City
Walk One LLC or another firm.
So, will the Bank of America building be Gadams' next conquest? Has he struck again?
So, will the Bank of America building be Gadams' next conquest? Has he struck again?
Of
course, this is pure supposition.