Quantcast
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Manchester’s Navy Broadway complex: hurry up and wait

Warren Buffet, mortgage banker, called in to find loan for Trump backer’s mega-project

Architectural rendering of proposed Navy Broadway Complex
Architectural rendering of proposed Navy Broadway Complex

Ex–Union-Tribune owner and Republican kingpin Doug Manchester, still awaiting confirmation as ambassador to the Bahamas, also continues his quest for $650 million to finance his long-stalled Navy Broadway complex in downtown San Diego.

Doug Manchester Sr.

An October 13 news release by Berkadia Hotels and Hospitality Group says the company "has been tasked with sourcing a 50 percent [loan-to-cost] non-recourse construction loan that will close by year-end 2017. Berkadia Senior Managing Director Andrew Coleman and Managing Director Jackson Cloak will lead the team’s efforts."

Berkadia. a joint venture of Warren Buffett's Berkshire Hathaway and Leucadia National Corporation is a commercial mortgage loan banker and loan servicer, per the firm's website.

Manchester overcame the final legal challenge to his controversial $1.3 billion Navy Broadway project in March of last year when an appeals court rejected arguments that potential terrorist threats to the high-end mix of hotels, shops, restaurants, and Navy administrative offices had been inadequately weighed.

The government "could have, and should have, considered the environmental impact of at least a few attack scenarios at the Complex," opined dissenting senior district judge James G. Carr.

The U.S. Supreme Court declined to hear the case last December. Since then, the project has languished as the La Jolla real estate maven has sought to assemble financing. In April, as Manchester began tearing down buildings on the site, the developer's representative told the Union-Tribune that the money would be soon in hand.

"Perry Dealy, Manchester's project manager, said the demolition will cost $4.5 million and is being paid [for] by Manchester Financial Group. He said there should be an announcement in the next 60 to 90 days that all financing is in order."

Doug Manchester Jr.

When Manchester faced similar financing delays with an Austin, Texas, hotel project in 2013, he and his son, also named Doug, sought money from Chinese investors, using the federal government’s EB-5 program. The arrangement allows foreign investors to obtain permanent residency visas in exchange for putting cash into American projects.

After that failed, Manchester turned in October 2014 to Santa Monica billionaire, distressed-asset lender, and fellow Donald Trump mega-funder Thomas Barrack, Jr., a University of San Diego law school alumnus, for a $295 million loan.

Whether or not Berkadia comes up with the Navy Broadway funding, the question of who will run Manchester Financial if its founder finally becomes ambassador to the Bahamas remains up in the air. "Upon confirmation, I will resign my position with the firm," Manchester pledged in a March 30 letter to Katherine McManus, the State Department’s deputy legal adviser and Designated Agency Ethics Official.

"Although I will remain the sole owner of the firm, I will not provide services material to the production of income. Instead, I will receive only passive investment income from it.”

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

Here's the scoop on Switchfoot's Drive-In Concert June 7

CA's 1st post-pandemic concerts
Comments
0

Be the first to leave a comment.

Sign in to comment

Sign in

Architectural rendering of proposed Navy Broadway Complex
Architectural rendering of proposed Navy Broadway Complex

Ex–Union-Tribune owner and Republican kingpin Doug Manchester, still awaiting confirmation as ambassador to the Bahamas, also continues his quest for $650 million to finance his long-stalled Navy Broadway complex in downtown San Diego.

Doug Manchester Sr.

An October 13 news release by Berkadia Hotels and Hospitality Group says the company "has been tasked with sourcing a 50 percent [loan-to-cost] non-recourse construction loan that will close by year-end 2017. Berkadia Senior Managing Director Andrew Coleman and Managing Director Jackson Cloak will lead the team’s efforts."

Berkadia. a joint venture of Warren Buffett's Berkshire Hathaway and Leucadia National Corporation is a commercial mortgage loan banker and loan servicer, per the firm's website.

Manchester overcame the final legal challenge to his controversial $1.3 billion Navy Broadway project in March of last year when an appeals court rejected arguments that potential terrorist threats to the high-end mix of hotels, shops, restaurants, and Navy administrative offices had been inadequately weighed.

The government "could have, and should have, considered the environmental impact of at least a few attack scenarios at the Complex," opined dissenting senior district judge James G. Carr.

The U.S. Supreme Court declined to hear the case last December. Since then, the project has languished as the La Jolla real estate maven has sought to assemble financing. In April, as Manchester began tearing down buildings on the site, the developer's representative told the Union-Tribune that the money would be soon in hand.

"Perry Dealy, Manchester's project manager, said the demolition will cost $4.5 million and is being paid [for] by Manchester Financial Group. He said there should be an announcement in the next 60 to 90 days that all financing is in order."

Doug Manchester Jr.

When Manchester faced similar financing delays with an Austin, Texas, hotel project in 2013, he and his son, also named Doug, sought money from Chinese investors, using the federal government’s EB-5 program. The arrangement allows foreign investors to obtain permanent residency visas in exchange for putting cash into American projects.

After that failed, Manchester turned in October 2014 to Santa Monica billionaire, distressed-asset lender, and fellow Donald Trump mega-funder Thomas Barrack, Jr., a University of San Diego law school alumnus, for a $295 million loan.

Whether or not Berkadia comes up with the Navy Broadway funding, the question of who will run Manchester Financial if its founder finally becomes ambassador to the Bahamas remains up in the air. "Upon confirmation, I will resign my position with the firm," Manchester pledged in a March 30 letter to Katherine McManus, the State Department’s deputy legal adviser and Designated Agency Ethics Official.

"Although I will remain the sole owner of the firm, I will not provide services material to the production of income. Instead, I will receive only passive investment income from it.”

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Z-Boi, Kiyoshi, Heartbreaka, and other rappers on COVID-19

What’s going on during lockdown?
Next Article

San Diego Schools welcome end of so-called “distance learning”

School at Home ≠ Homeschool
Comments
0

Be the first to leave a comment.

Sign in to comment

Sign in

Art Reviews — W.S. Di Piero's eye on exhibits Ask a Hipster — Advice you didn't know you needed Best Buys — San Diego shopping Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits City Lights — News and politics Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Excerpts — Literary and spiritual excerpts Famous Former Neighbors — Next-door celebs Feast! — Food & drink reviews Feature Stories — Local news & stories From the Archives — Spotlight on the past Golden Dreams — Talk of the town Here's the Deal — Chad Deal's watering holes Just Announced — The scoop on shows Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Of Note — Concert picks Out & About — What's Happening Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Pour Over — Grab a cup Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer News — Inside San Diego suds SD on the QT — Almost factual news Set 'em Up Joe — Bartenders' drink recipes Sheep and Goats — Places of worship Special Issues — The best of Sports — Athletics without gush Street Style — San Diego streets have style Suit Up — Fashion tips for dudes Theater Reviews — Local productions Theater antireviews — Narrow your search Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Waterfront — All things ocean Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close