World Class Capital Group

[H2O]

Originally Posted by The ATX

What's the link for that?

I'm comforted by the thought that this is not likely to see the light of day in it's present form, but Brett Rhode needs to stop inflicting all the worst qualities of the Independent all over Downtown. I still don't know how they got away with the lack of proper screening of the parking required Downtown. Also, does the 'crown' remind you of anything?

[The ATX]

Concerning the rendering...

Rhode said he designed the rendering that Nate Paul of World Class Capital posted on LinkedIn about a new tower coming to Fifth and Red River Streets. Rhode said he was previously engaged by the Houston owner to build a highrise and after the Houston group sold to World Class Capital, Rhode: Partners was retained to do additional work.

“After he purchased the site, Nate Paul engaged us to do further studies in 2018, including an office study. The rendering he apparently sent out was one we did of one of the office schemes. That scheme was 32 stories,” Rhode wrote to me. “With the approval to demolish part of the existing buildings, the site is a very viable as a high-rise tower site, even though it has a capital view corridor crossing the east side of the parcel. We are still hoping to complete one of our designs for this great site.”

https://atxrealestatenews.com/

[austlar1]

Originally Posted by The ATX

Concerning the rendering...



https://atxrealestatenews.com/

^^^A deep dive into the above link produced this:

Given Kiltz’s court statements, it’s hard to fathom why Nate Paul posted on LinkedIn over the weekend, that “an iconic tower is coming to downtown Austin at the corner of 5th and Red River. Over 600,000 square feet, spectacular views, and an irreplaceable location. Downtown Austin is about to get a lot more interesting.”

Really? The property is in Chapter 11 bankruptcy with multiple moving parts and hearings scheduled through the end of the year. If historical considerations and view corridors in fact regulate the site, then what Paul is touting is pie in the sky. I wonder where he found that rendering? C’mon, man.

[GoldenBoot]

...and almost 10 years from now this will be another "99 Trinity" dream with Paul finally in jail.

[The ATX]

He should stick to playing Sim City and not waste our time.

[austlar1]

The Red River (Carmella's?) parcel is one of the properties involved in the early November bankruptcy filings. I don't know how old the post above might be. It says one day ago, but it is copied from some other site (not Facebook) and could be from years ago. Can anybody track it down?

https://www.statesman.com/business/2...for-bankruptcy

[We vs us]

It was a LinkedIn post, bizarrely enough. I couldn’t find anything else on the web to back it up, but’s it was definitely posted within the last day or so.

[GoldenBoot]

Looks like WCCG rejected several offers for the 99 Trinity site. Including a $60 million offer for the 0.94 ac property by a San Francisco billionaire.

https://www.bizjournals.com/austin/n..._news_headline

[urbancore]

Originally Posted by GoldenBoot

Looks like WCCG rejected several offers for the 99 Trinity site. Including a $60 million offer for the 0.94 ac property by a San Francisco billionaire.

https://www.bizjournals.com/austin/n..._news_headline

Yep. I’ve brought him a few offers for 99 over the years. He wouldn’t even give us a counter.

[We vs us]

Originally Posted by urbancore

Yep. I’ve brought him a few offers for 99 over the years. He wouldn’t even give us a counter.

It's super weird. Why buy and hold for so long in this city? With no discernable revenue stream to offset the crap ton of taxes you'll pay?

Choosing not to engage at all -- even with serious offers, even with obscenely high offers -- is deeply suspicious.

[paul78701]

Originally Posted by We vs us

It's super weird. Why buy and hold for so long in this city? With no discernable revenue stream to offset the crap ton of taxes you'll pay?

Choosing not to engage at all -- even with serious offers, even with obscenely high offers -- is deeply suspicious.

Yep. This just adds more weirdness to what we've known...something fishy has been going on with WCC for quite some. I'm just waiting patiently to find out whether it's money laundering, a pyramid scheme, or what have you.

[urbancore]

Originally Posted by We vs us

It's super weird. Why buy and hold for so long in this city? With no discernable revenue stream to offset the crap ton of taxes you'll pay?

Choosing not to engage at all -- even with serious offers, even with obscenely high offers -- is deeply suspicious.

Exactly. And I know him. We text each other a few times a year, and have broken bread a few times. I’ve even worked with him on deal on Manchaca back in 07.
I don’t get it. That said, I haven’t asked for obvious reasons.

[H2O]

Originally Posted by GoldenBoot

Looks like WCCG rejected several offers for the 99 Trinity site. Including a $60 million offer for the 0.94 ac property by a San Francisco billionaire.

https://www.bizjournals.com/austin/n..._news_headline

Interesting. That guy called me a bout a month ago looking for leads on Downtown properties in play. Not being a broker, all I felt I could suggest is that he contact a broker. He said, "Yes, I could do that, but I thought you might have other information". I thought about mentioning the WCC situation, but thought I should be careful about steering anybody that way. It looks like I didn't need to. That being said, I suspect he has a Silicon Valley client that is looking for an opportunity, otherwise he would just be entering a hot market on pure speculation. Smart developers with his track record would probably at least team up with a local developer that knows the landscape before jumping in on pure speculation.

[ILUVSAT]

Originally Posted by GoldenBoot

Looks like WCCG rejected several offers for the 99 Trinity site. Including a $60 million offer for the 0.94 ac property by a San Francisco billionaire.

https://www.bizjournals.com/austin/n..._news_headline

It would be incredibly awesome if Jay Paul developed something similar to their 181 Fremont tower in Austin!!!

[The ATX]

It sounds like Paul is just a (property) hoarder and can't let go or develop it.

[paul78701]

Paul-controlled entities win foreclosure reprieve, but told 'clock is ticking':
https://today.statesman.com/express/...an--13--2020/5

[Sigaven]

Originally Posted by paul78701

Paul-controlled entities win foreclosure reprieve, but told 'clock is ticking':
https://today.statesman.com/express/...an--13--2020/5

never wanted to punch my computer screen so badly

[austlar1]

By Bob Sechler
@bob_sechler
By Shonda Novak
@snovak999
Posted at 4:25 PM Updated at 4:52 PM

Austin real estate investor Nate Paul, faced with imminent foreclosures on another eight properties owned by business entities that he controls, has once again opted for the shelter of bankruptcy court, bringing the number of bankruptcies related to his holdings in the city to more than a dozen since November.

The latest string of bankruptcies includes a filing by WC Hirshfeld Moore LLC, the Paul-controlled entity that owns the Hirshfeld-Moore building in downtown Austin, where Paul’s company, World Class Holdings, has its headquarters.

The FBI and the U.S. Department of Treasury searched the company’s offices in the Hirshfeld-Moore building last August. Federal authorities have declined to comment on the reason for the search.

The eight new Chapter 11 filings — in U.S. Bankruptcy Court in Delaware — forestalled foreclosure sales that had been scheduled for Tuesday on the steps of the Travis County Courthouse. Ladder Capital Finance LLC, which initiated the foreclosure proceedings, contends the Paul-controlled entities are in default on a $47.6 million loan made in 2018.

Since early November, bankruptcy filings by six other Paul-controlled entities have staved off foreclosures as well, including on high-profile properties like the 156-acre former 3M campus in Northwest Austin and the site of the former Carmelo’s Italian restaurant at 5th and Red River streets.

Neither Paul nor Brian Elliott, corporate counsel for World Class, would comment Tuesday.

However, in November bankruptcy filings involving the 5th and Red River site and properties owned by three other Paul-controlled entities, they contended that “a rogue lender” — an affiliate of real estate firm Stonelake Capital Partners — was trying to wrest control of the properties by using the foreclosure process improperly.

They submitted a required plan this week with the U.S. Bankruptcy Court in Texas, where those cases were filed, aimed at enabling the four entities — 5th and Red River LLC, 900 Cesar Chavez LLC, 905 Cesar Chavez LLC and 7400 South Congress LLC — to emerge from Chapter 11, although the court still has to give it a green light. The plan involves selling the properties, which according to court documents have a combined appraised value of about $31.7 million, and paying off a loan balance that was pegged at more than $19 million in January, counting fees and interest.
Paul-controlled entities that have filed for bankruptcy since November:

Entity / Date of filing

900 Cesar Chavez LLC — 11/4/2019

905 Cesar Chavez LLC — 11/4/2019

5th and Red River LLC — 11/4/2019

7400 South Congress LLC — 11/4/2019

WC 56 East Avenue LLC — 12/2/2019

Silicon Hills Campus LLC — 1/7/2020

WC Hirshfeld Moore LLC — 2/3/2020

WC 805-809 East Sixth LLC — 2/3/2020

WC 1212 East Sixth LLC — 2/3/2020

WC 320 Congress LLC — 2/3/2020

WC 901 East Cesar Chavez LLC — 2/3/2020

WC 9005 Mountain Ridge LLC — 2/3/2020

WC 103 East Fifth LLC — 2/3/2020

WC 422 Congress LLC — 2/3/2020

But Jonathan Pelayo, an attorney for the Stonelake affiliate, said his client will oppose the plan. He previously has called the bankruptcies ploys to block rightful foreclosure proceedings and keep Paul’s operations afloat as long as possible.

“The plan appears to be Mr. Paul’s latest effort to create delay, which is consistent with the pattern of behavior we have seen over the past few months,” Pelayo said in an e-mail. “The plan represents more of the same delay tactics from the debtors, who are in default of their obligations under our loan agreement and have failed to make a loan payment for seven months.”

Local commercial real estate broker Dani Tristan, who has been retained by Paul’s company to market the properties, said Tuesday that he anticipates no shortage of potential buyers.

“I’ve already received a tremendous amount of interest from local and national groups,” said Tristan, of McAllister & Associates.

Another Paul-controlled entity, WC 56 East Avenue LLC, filed for bankruptcy protection in December and subsequently filed a lawsuit last month alleging that U.S. Real Estate Credit Holdings III-A, its original lender, and a number of entities affiliated with Pennybacker Capital Management LLC had “engaged in conspiracy and fraud to wrongfully manufacture a fake loan default that did not actually occur.”

Tim Berry, president, CEO and founder of Pennybacker Capital LLC, a private real estate equity firm, declined to comment.

[urbancore]

https://www.bizjournals.com/austin/n..._news_headline

looks like some properties may be coming on the market soon.

from the ABJ

"The plan proposes that the debtor, World Class, be entitled to close any sale with a gross sale price of at least 85% of the properties' appraised values. The plan lists an appraised value of $3.9 million for 900 Cesar Chavez, $1.68 million for 905 Cesar Chavez, $5.18 million for 7400 South Congress and $20.89 million for 504 E. Fifth St.

A Feb. 3 order from United States Bankruptcy Judge Tony Davis authorized the hiring of McAllister & Associates to serve as the exclusive broker for the debtors, with Dani Tristan leading the effort. Tristan, who has worked frequently with World Class in the past, could not immediately be reached for this story. He recently suggested the Carmelo's site could fetch in excess of $30 million.

In yet another Feb. 3 filing, 7400 South Congress LLC is seeking the court's permission to sell three parcels comprising 7.5 acres. The filing suggests the property was recently appraised for nearly $5.2 million.

Before filing for bankruptcy, World Class had agreed to sell the 7400 South Congress land to Rastegar Property Company LLC — headed by Nate Paul's former employee Ari Rastegar — for $10 million.

The new filing proposes that Rastegar Property Co. be the stalking horse bidder for 7400 South Congress LLC, meaning it will set the minimum bid price at a future auction for the property. If approved, the minimum purchase price would be $9.75 million. The bid includes a $500,00 non-refundable deposit as well as some buyer protections, according to court filings.

Feb. 3 was also a big day for World Class in the Texas Third Court of Appeals, where a judge awarded a victory to the real estate firm.

The judge halted a Dec. 10 district court order granting a receiver control of two World Class limited partnerships that own property downtown, WC 1st and Trinity LP and WC 3rd and Congress LP. Those two partnerships own four downtown properties: a lot at 99 Trinity St. just south of the Austin Convention Center and three parcels surrounding The Austonian skyscraper."

[urbancore]

“World Class prepares to sell first properties out of bankruptcy“

ABJ