Cameron Kuhn: The downtown redevelopment baron who went bust

[thelakelander]

Just goes to show we should never put all our redevelopment dream eggs in one basket.  Instead of shooting for the one trick pony, focus on attracting the small urban pioneers who can fill one storefront or building at a time.

"FOR US, THIS IS NO RISK."

Cameron Kuhn to the Times-Union shortly after buying his second downtown Jacksonville building in less than a month, Oct. 30, 2005

"WHEN I COME INTO A MARKET, I MAKE IT SNAP, CRACKLE AND POP."

Kuhn to the Times-Union, Dec. 16, 2005.

"I NEVER HAD ANY DOUBT. I DON'T FUNCTION IN FEAR."

Kuhn, after reaching a preliminary deal with the city and the Landing on parking spaces, to the Times-Union, March 24, 2006.

"TO A DEVELOPER, THE LOSS OF TIME CAN DESTROY A PROJECT AND IN BOTH OF THESE INSTANCES NOT BEING ABLE TO GET APPROVAL AND INDECISION BY JEA HAS COST ALL OF OUR PROJECTS TIME AND MONEY."

Kuhn in a news release critical of Jacksonville preservation officials and the city-owned utility, June 19, 2007.

"I WILL LOSE SOME BUILDINGS."

Kuhn to the Orlando Business Journal, Jan. 24, 2008

"MY EGO WAS TOO BIG ... QUITE FRANKLY."

Kuhn to Orlando News 13, Feb. 7, 2008

A tale of two cities

CHICAGO Kuhn started his first redevelopment project at age 19, taking on an old warehouse in his native Chicago. He talked the owner into letting him fix it up, break it up into an office warehouse and lease the space out. Kuhn did the work himself and eventually bought the place with rental income. From 1979 to 1991, he did similar work, turning buildings into office space, as well as commercial or residential lofts. He left at 31, looking to retire.

ORLANDO Kuhn has finished more than 20 rehabilitation projects in Orlando, starting with the Central Arcade in 1994. Projects have ranged in scope, but the primarily focus has been on older, rundown buildings. City leaders give Kuhn the bulk of the credit for jump-starting a once-fledgling downtown. Kuhn entered the new construction market with the Plaza, a three-tower complex of office space and residential that was supposed to include a yet-to-be built movie theater. In April, Kuhn was the lone bidder in a bankruptcy auction and paid $34 million for Church Street Station, a once-bustling entertainment hub in downtown Orlando. Financial woes have hit his Orlando projects, too. He's facing foreclosures, contractors looking to get paid and suits from current and former tenants.~~~

SUNTRUST TOWER

THE SALE: $37 million for the tower and $5.5 million for the right to buy an adjacent lot in September 2005.

THE PLANS: Renamed $250 million project River Watch at City Centre, turned SunTrust into office condos and planned 33-story hotel/condo tower and parking garage.

WHAT'S DONE: SunTrust converted to office condominiums; about half the units were sold. Building the 33-story tower is on hold. Several deadlines have passed on the garage.

WHAT'S HAPPENING?: Foreclosure

OLD BARNETT BANK BUILDING

THE SALE: $4.95 million for the building in October 2005.

THE PLANS: Plans were for homes and offices in the building renamed One12, though the project has been in flux.

WHAT'S DONE: Hotel chains were looking at the property last year. Most of the interior of the building has been demolished and Kuhn received a $900,000 city grant for completing exterior work on the building.

WHAT'S HAPPENING: Foreclosure

DYAL-UPCHURCH BUILDING

THE SALE: $4.5 million for the building in December 2005.

THE PLAN: Rename the building 6 East Bay, renovate some of the floors and keep the building as office space.

WHAT'S DONE: Most renovations were done before Kuhn bought the building, though one would-be tenant is tied up in court with Kuhn over not being able to move into the building.

WHAT'S HAPPENING: For sale

THE LAURA TRIO (Bisbee, former Florida Life and former Marble Bank buildings)

THE SALE: $6.4 million in February 2007.

THE PLANS: Planned to turn the buildings into retail and office space, along with building a parking garage on a lot that was part of the sale.

WHAT'S DONE: Very little. Kuhn defaulted on a $1.05 million historic grant to restore the outside of some of the buildings and thus never received the money.

WHAT'S HAPPENING: Foreclosure

full Times Union article: http://jacksonville.com/tu-online/stories/030808/met_254917892.shtml

[heights unknown]

Don't lock your trust in one person indeed; and...don't be so quick to embrace all of the golden eggs laying deliciously and enticingly in one basket.  It all did seem too quick, and "too good to be true."  But who knows, he is also a man who is known for not going down for the count.  I truly believe he is getting up, dusting himself off, taking a deep breath, and initiating plan #2 to bounce back and even try to keep his so called empire if possible.  I don't think that will happen, but I don't think that we have heard the last from Cameron Kuhn.

[Timkin]

As someone mentioned in a thread @JOL, With the economy and the market like it has become , this could happen to potentially any investor/developer.

I seriously doubt Mr Kuhn embarked on this endeavor, with the intent of ending up where it stands now, and as stated, I dont think this is the last we will hear of him.  Hopefully he can initiate a plan B, and emerge from this, somewhat without losing everything.  I feel it unfortunate , to say the least that he climbed so high, then fell.  I wish him the best.

[Basstacular]

I saw first hand living in Downtown Orlando from 2000 - 2005 what Kuhn was capable of developing.  It is a true shame that he will not be able to come through on his promises, but the intent to help better our Downtown like he vastly helped transform DT Orlando was genuine, in a very over zealous attempt.  I too wish him the best and have a feeling he will make it back and we will hear from him in our town one day.

[Timkin]

I lived in Orlando from 1992-2001 .. and saw it as well.    Mr Kuhn will bounce back.. and I do think he will re-emerge here. =)

[jeh1980]

Mr Kuhn will bounce back.. and I do think he will re-emerge here. =)
[/quote]
I definately agree with you. I really felt sorry for the man. He had big dreams for this city. I think he'll come back. Never give up and never say die, Mr. Khun .

[thelakelander]

Downtown Orlando movie theater? Just a reminder of bubble that burst

Beth Kassab | Business Columnist
May 2, 2008

Much was built on speculation in downtown Orlando as the real-estate market bubbled up to its eventual heady froth. Condos. Offices. Retail storefronts.

The most unusual example of unchecked exuberance? A 12-screen movie theater.

The cinema's shell is sitting empty along Orange Avenue as part of The Plaza developed by Cameron Kuhn.

It looks as if it will be that way for quite some time, now that AMC Theatres announced this week that it is abandoning plans to take over the space.


The theater was once heralded as a central piece in Orlando's urban revival -- so important that five years ago Orlando Mayor Buddy Dyer offered $3.5 million over 10 years to any operator willing to turn down the lights and turn on a projector there.

Two years ago Dyer singled out the movie theater in his "State of Downtown" address.

"And as we speak, the finishing touches are being put on the Premiere Trade Plaza," he told people who attended the Oct. 4, 2006, speech. "In fact . . . if you reach into the bag that was on your seat you'll find a pair of movie vouchers, courtesy of Kuhn Management, for our city's first downtown movie theater in decades opening early next year."

If you're still holding on to those tickets, you might as well toss them.

The city has moved on to what it sees as bigger and better projects, such as a new performing-arts center and Orlando Magic arena.

Gone are the days when city officials, the downtown business crowd and this newspaper touted the theater as the draw that would lure suburbanites to mingle with high-rise condo-dwellers and stimulate the foot traffic vital for successful restaurants and shops.

If the theater was so important just a couple of years ago, why isn't it just as essential today? And shouldn't it be alarming that a deal that was promised didn't get done as we are surrounded by empty condominium units?

Earlier this week, a city spokeswoman said it would be "great to have that amenity downtown," but the need has faded in light of plans for the new downtown venues.

A performing-arts center and new arena will certainly make for a more vibrant and diverse downtown night life.

But decent seats at a Broadway show or an NBA game can run at least $50 -- or significantly more.

That's not something the urbanites who do live in the high-rises will be willing to pay for every night or even every week.

Downtown needs a broad range of entertainment options if people are truly going to live, work and play there.

Folks at City Hall certainly know that.

But they are in damage-control mode as they try to protect downtown's image in an increasingly dreary real-estate climate.

It's the old "focus on the good and pretend you don't see the bad" routine.

Since the market bubble popped, it's apparent there isn't enough foot traffic yet to support a theater. If there were, someone would have snapped up that sweet incentive deal by now.

And many of the people who do live downtown are likely just as satisfied grabbing a Netflix movie out of the mailbox and putting their feet up in front of their personal flat screen, anyway.

In the meantime, the latest owner of the theater space, RP Realty Partners LP, is stuck figuring out what to do with a big empty space with concrete sloped floors perfect for stadium seating.

http://www.orlandosentinel.com/business/columnists/orl-kassab0208may02,0,2564250.column

[thelakelander]

Plans for downtown Orlando movie theater fade to black

Plans for a movie multiplex in downtown Orlando are on hold and may be scuttled for good, disappointing nearby residents and business owners but creating little more than a yawn at City Hall.

AMC Theatres spokesman Andy D'Orio said Wednesday that the Kansas City, Mo., company has opted out of its agreement to manage a 12-screen multiplex in The Plaza office towers because of a lack of progress in completing interior work for a second-floor theater complex facing Orange Avenue.

"We're out of the deal," D'Orio said.

full article: http://www.orlandosentinel.com/business/columnists/orl-theater0108may01,0,2108982.story

[Jason]

Developer's downtown projects belong to lender now

Cameron Kuhn's properties found no buyers at auction.


By David Bauerlein, The Times-Union


JDI Realty of Chicago lent tens of millions of dollars for developer Cameron Kuhn's headfirst dive into redevelopment of abandoned buildings in downtown Jacksonville.

Now, JDI Realty owns those landmarks after no one bought them Wednesday at a foreclosure auction.

The auction came after JDI foreclosed on Kuhn's ownership of the old Barnett Bank building at 112 W. Adams St. and a group of buildings known as the Laura Street Trio. The trio - the Bisbee, former Florida Life and former Marble Bank buildings - are on Laura Street between Adams and Forsyth streets.

Court judgments in the foreclosure cases determined Kuhn's companies owed JDI $9.5 million for the former bank building and $7.2 million for Laura Street Trio when unpaid loans, interest and fees were tallied.

Kuhn bought the Laura Street buildings for $6.4 million in 2007 from the Jacksonville Police and Fire Pension Fund.

John Keane, executive director of the fund, said Thursday the organization isn't interested in buying back the property. He said the downtown market is bleak.

"I think housing has come to a screeching halt," he said. "For offices, there's some space in the downtown area, so there's not much motivation to build a new building."

JDI Realty did not return phone calls or respond to e-mails about its future in Jacksonville.

Later this month, another foreclosed Kuhn building will be up for bid in an auction of the SunTrust Tower, located across the street from The Jacksonville Landing. Kuhn bought the downtown tower in 2005 and turned it into office condominiums, selling about half of them.

JDI filed a foreclosure lawsuit and won a $17.3 million judgment for unpaid loans on that venture. The auction is scheduled for Aug. 25.

david.bauerlein@jacksonville.com, (904) 359-4581

[thelakelander]

Wow.  An auction and not one buyer for any downtown property.

[fsujax]

I was shocked at that too, Lake. Wish I had the means, I would have bought the old barnett building and made it apartments.  Did you notice Keanes comments about Downtown? he made it sound dismal.

[thelakelander]

I noticed.  I don't think its that bleak, but you do have to get a little creative in the type of projects intended for the core.

[Jason]

On the other hand this could be good for the small time developer with limited capital.  These buildings will likely sell for much less than the previous auction price leaving a nice grab for the little guy wanting to make a difference.

[Steve]

It bleak for what he wants to do - condos or office.  I actually think that apartments would do well - and do more for downtown than any expensive condo complex.

[hooplady]

It bleak for what he wants to do - condos or office.  I actually think that apartments would do well - and do more for downtown than any expensive condo complex.

...and is there no market for actual loft space in Jacksonville?  I mean: gut the building, leave the wonderful bones, install some infrastructure and leave it as true raw open space for owners to do what they like.  Wouldn't that appeal to a broader market than upscale condos?  I see many properties referred to as "lofts" but so few are, and I've heard various potential urban dwellers bemoan this fact.

Being neither an architect nor a real estate developer, I'm sure there's some obvious flaw that I'm not seeing.