Jefferson Arms owner reaches deal to sell it
Defunct developer Pyramid Construction Inc. has found a buyer for another of its downtown properties.
Sherman Associates, a Minneapolis-based developer that helped renovate the 192-unit Syndicate building on Olive Street downtown, has reached a deal to buy the Jefferson Arms building on North Tucker Boulevard, said Steve Goldstein, an attorney for Pyramid owner John Steffen.
Goldstein would not disclose terms of the deal, which he said would likely close next year, but said any proceeds would go to Pyramid’s bank, Citicorp. Sherman did not return a call seeking comment.
Pyramid bought the Jefferson Arms, a 496-unit apartment building, in 2006 for $19 million and planned a $75 million renovation. But earlier this year, the company shut down due to financing troubles and began selling off its properties, which include a number of prominent downtown buildings.
Several still remain on its rolls, including the Mercantile Library building, at 510 Locust Street; and the Arcade Building, at 814 Olive Street paydayloans. Pyramid is trying to get all of them into the hands of new developers, Goldstein said.
"There are irons in the fire on virtually all of them," he said. "But it took a number of years to assemble these projects, and there are a number of different constituencies involved. Progress is slow but steady."
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