Two undeveloped lots on the block containing the long-vacant Ambassador Hotel and Central National Bank building will be put up for public bid March 25 under a court order in a foreclosure suit filed against owner Axis Hotels LLC.
A notice of sale was filed Feb. 6 in the case after the plaintiff, Indiana-based Shah Family LLC, was awarded a judgment of $4.81 million in November 2024.
Based on the legal descriptions in the notice of sale and a review of deeds for the properties in the block, the three parcels that are identified in the notice of sale comprise lots on the southwest and northwest corners of the block.
The hotel, at 420 N. Julia St., is the site of stalled plans by St. Augustine-based Axis Hotels LLC to resurrect it as a 127-room La Quinta Inn and Suites. A companion plan was to demolish the adjacent Central National Bank building and replace it with apartments and a parking garage.
In January 2019, the Jacksonville City Council approved an economic development agreement with St. Augustine-based Axis Hotels LLC to support the project. Council approved a $4.9 million Recapture Enhanced Value Grant for the Central National Bank and a $1.5 million historic preservation grant for the Ambassador Hotel.
Total construction costs were estimated at $38 million, and the original estimated time of completion was listed at 14 months. The city approved permits for the project in March 2019.
Today, the Central National Bank building still stands and the Ambassador is a hollow shell, with most windows missing and doorways boarded up.
Lawsuit filed
The suit was originally filed in June 2022 by a Florida-based plaintiff group that included Easton Land & Development Inc., 404 N. Julia St. LLC, Solomon Julia LLC, Easton Duval LLC and Samuel L. Easton Jr. It is filed as Case 2022-CA-003442.
That group sold the five-lot, 1.5-acre property to Axis Hotels LLC, an affiliate of the Augustine Development Group, for $5.4 million in July 2018.
The property makes up the block of Duval, Julia, Church and Pearl streets.
Co-defendants in the case were Axis Annex LLC, Prospect Holdings LLC, DFI General Contractors LLC and “Unknown Parties in Possession.”
The plaintiffs alleged that Axis Hotels LLC had defaulted on a $2.508 million promissory note for the property.
In June 2023, the court granted a motion to substitute the plaintiffs with Indiana-based Shah Family LLC. In the motion, the original plaintiffs said they had sold, conveyed and transferred their right, title and interest in the issue to Shah.
The president of Shah Family LLC is Kirti P. Shah. The company shares a North Manchester, Indiana, address with Custom Magnetics Inc., which manufactures custom-designed transformers and coils. Custom Magnetics says on its website it was founded by Shah.
The final judgment, filed Nov. 22, 2024, was for $4.819 million, including the $2.508 million principal amount, $217 million in interest compounded to Oct. 31. 2024, and a $125,400 late payment penalty.
Duval County Property Appraiser records show five different parcels on the block, all owned by Axis Hotels LLC or affiliated interests Axis 404 Julia LLC and Axis Annex LLC.
Another lawsuit
In fall 2024, another foreclosure lawsuit was filed against Axis Hotels LLC over the Ambassador property.
The suit, filed in Duval County Circuit Court by St. Augustine-based Good As New Ventures LLC, involves a $9 million construction loan to Axis Hotels LLC from DLP Lending Fund LLC. The loan was finalized in 2021, the suit states, with the property offered as security.
The suit says that in October 2023, DLP obtained a default judgment against Axis Hotels LLC in the Court of Common Pleas for Lehigh County, Pennsylvania, for $10.58 million plus per diem interest of $6,000. In April 2024, DLP transferred the loan and judgment to Good As New Ventures, the suit says.
Good as New Ventures is managed by DLP and shares its address. Good as New Ventures was founded in Pennsylvania and changed its address to St. Augustine in 2022, state records show.
In its June 2024 filing in Duval County, Good As New Ventures claims Axis Hotels has not paid the judgment. Axis Hotels is the lead defendant in the suit, which also names 16 contractors and other entities with interest or possible interest in the property.