Here's a news release put out by Sheila Thoma, spokeswoman for Titan Development and Investments, on behalf of the investment group that's planning the Broadway at Center project. More on this in Thursday's P-B.
Update on Broadway at Center Project in Rochester
ROCHESTER, Minn. (July 6, 2016) – The 23-story $145 million mixed-use Broadway at Center project in downtown Rochester encountered a delay as a result of the failure of one of its stakeholders to perform. This project, led by Gus Chafoulias and supported by the Titan Development & Investments team, features a Hilton hotel, luxury apartments, retail, and dining. The project site is located on the corner of South Broadway and East Center Street.
A few weeks ago, the project’s stakeholders, including the City of Rochester, Kraus-Anderson Construction Company, local unions, lenders, including Dougherty Funding LLC, West Bank, local union pension funds through their advisor, Whitestar Advisors LLC, and Premier Bank, and Mr. Chafoulias made all required deliveries to close a $105 million loan in escrow and since that time have been waiting for one stakeholder, an investment group led by Prince Turki Bin Abdullah Bin Abdul Aziz Al-Saud, a member of the Saudi Royal Family, and Anas Abukhadra, a Minneapolis businessman, to fulfill its obligations. As a result, the project had no alternative but to terminate the investment group’s rights to the project and pursue negotiations with potential replacement investors. It is anticipated that closing will take place once those negotiations are concluded.
“With any large-scale project like this, there are a number of parties involved. We are deeply appreciative of all of our stakeholders who have stood by our side. Unfortunately, one of them didn’t follow through as promised. We are optimistic of our next steps though and hope to close on the transaction soon,” said Mr. Chafoulias.