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World Class Holdings offices raided


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This was very easy to see from a mile away. When I moved back to Austin and was looking to get involved with Austin commercial real estate I reached out to this guy but never connected with him. I did, however, get a ton of reports about suspicious activities by him and his firm.

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On 8/17/2019 at 1:30 PM, Gourmand said:

I read a quote from Vista Equity founder Robert F. Smith that was along the lines of "Nate's a smart guy and has always delivered spectacular returns for us."

Hmmmm wonder how that could be? Sounds like Nate's a big time fraud who swindled a lot of big money players too greedy to ask how he was doing it.

Juicy read here btw....

https://atxrealestatenews.com/2019/08/16/world-class-capital-fbi-investigation-heres-my-take-on-recent-developments/?fbclid=IwAR3Vk8lJSogCDlj-mGAbUTDVM65h_rfpY82Hj1EVV1F3Z6ASyu7IsFvdcjo

 

That article is retarded.

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That article is retarded.
Agree. There is more going on with those employees lives than was said in the article. The guy that lost his family had to have more issues than this

I don't even know what to think about the guy mowing his yard.

This writer was stretching things to make an article
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  • 4 weeks later...

SEC will very soon,  be making their announcement of a local law firm here in Austin to analyze and sell off the assets in an orderly fashion.  It's a small firm with a very localized knowledge of Austin CRE, and knows the Nate shitshow.  Technically their domiciled law office is not in the City of Austin, but it's very close and they've (more importantly) earned the trust of the SEC.  

I find it curious that not even they know where Nate is right now.  

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That would make a funny photoshop/meme, the Nakatomi Plaza with a banner on the side reading, "Another World Class Capital Project" 

Edited by Lobo
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it would actually be hilarious (in a tragic way) if you knew what Nate was about to do to one of his properties.  Special Agents Johnson (not related), FBI, notwithstanding.  You ever wonder why nobody seems to be even remotely curious to report on where he is right now?  Other than a few token, completely unrelated social media feeds coming from nowhere in particular, he's seemingly off the grid?  Four weeks after maybe the biggest Austin CRE shakeup since the S&L crisis 30 years ago and nobody is publicly asking questions about where Nate is.  Not on the beach, earning 20%...hence the Nakatomi reference.  FBI and Treasury, as stated earlier, work together all the time, but only raid together for a handful of very specific instances.  Standby Maufrais, et. al.  

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3 hours ago, Lobo said:

it would actually be hilarious (in a tragic way) if you knew what Nate was about to do to one of his properties.  Special Agents Johnson (not related), FBI, notwithstanding.  You ever wonder why nobody seems to be even remotely curious to report on where he is right now?  Other than a few token, completely unrelated social media feeds coming from nowhere in particular, he's seemingly off the grid?  Four weeks after maybe the biggest Austin CRE shakeup since the S&L crisis 30 years ago and nobody is publicly asking questions about where Nate is.  Not on the beach, earning 20%...hence the Nakatomi reference.  FBI and Treasury, as stated earlier, work together all the time, but only raid together for a handful of very specific instances.  Standby Maufrais, et. al.  

So....I have no idea WTF this post means.

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  • 2 weeks later...

Still buying properties. ‚ÄúNothing to see here...move along‚ÄĚ

https://www.bizjournals.com/austin/news/2019/09/23/amid-foreclosure-battles-world-class-keeps-buying.html?ana=e_du_prem&j=84006491&t=Afternoon&mkt_tok=eyJpIjoiWmpJMU5qTXpPREUxT0RnMyIsInQiOiJYVFJkem5HTnN1bFNFQ1ZJQW10TGVQZFZibVRVRHIzdDJSSmlhclJuV0pvTmRSa3U4STBoTEYwSjk3TmNPdHFuZUlaWHJ2UHhkYjNiMFhnNWxZdDIyZTdZcjJtSnVpaHMwaGtEWHYzbUl0Nm1UOUFVejFcL0FCdnVEQjRjZnVZd1wvIn0%3D

Nate Paul’s World Class Holdings has picked up more properties in Austin, at the same time it's dealing with the threat of foreclosure on others.

World Class wants to develop a 150,000-square-foot class A office building at 1800 Cesar Chavez St., according to LinkedIn posts from Paul. The project would also include ground-floor retail and restaurant space.

No plans for the project have been filed yet with the city of Austin Development Services Department.

A limited liability company connected to World Class ‚ÄĒ 1800 Cesar Chavez LLC ‚ÄĒ purchased the property at 1800 E. Cesar Chavez St. as well as four adjoining tracts, according to a special warranty deed with vendor‚Äôs lien filed Aug. 14 with the Travis County Clerk‚Äôs Office.

The now-closed cocktail bar Weather Up was located in a converted house on one of the tracts: 1808 E. Cesar Chavez St.

When or if plans for 1800 Cesar Chavez will advance beyond social media is a fair question. The special warranty deed was filed the same day agents from the FBI and U.S. Treasury Department raided World Class’ headquarters at 814 Lavaca St. KXAN News reported law enforcement also recovered material from Paul's home that day.

Federal officials have declined to comment on the raid. No arrests have been made.

Travis Central Appraisal District values World Class’ recent purchases, which together make up over an acre, at about $2.9 million. The sellers, which are different based on the tracts, are all connected to Austin-area businessman Marcelo Vera. The vender’s lien on the deed gives the seller the right to take back the property if the buyer doesn't make all the payments.

Equity Secured Investments Inc. provided 1800 Cesar Chavez LLC with a $4.7 million loan, according to the warranty deed. Barry Johnson, a Dallas-based commercial lending attorney at SettlePou, is the trustee on the loan.

According to its website, Equity Secured was founded in 1990 "to fund real estate loans that were perceived by traditional lenders to be too risky."

Equity Secured posted on its website that it lent $4.7 million in a bridge loan on Aug. 12 to a "repeat customer" for a commercial lot purchase, which seems to fit the 1800 Cesar Chavez LLC transaction. The lender said the customer put 20% down and needed a quick closing because the seller had a backup buyer and wouldn’t extend the closing date. The loan closed in five business days, according to Equity Secured.

Loans for riskier projects can come with interest rates in excess of 10%, said Greg Hallman, senior managing director of the Texas Real Estate Center at the University of Texas at Austin. A rate sheet posted on Equity Secured's website features interest rates beginning at 8.75% for three-month loans, rising to 11.75% for 12-month loans. It's unclear what the terms of the loan are for 1800 Cesar Chavez LLC.

Paul did not immediately respond to a request for comment on the project.

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  • 1 month later...
  • 2 months later...

Nate Paul's World Class Holdings has filed for Chapter 11 bankruptcy protection for one of its largest and most prominent properties: the massive former 3M campus in Northwest Austin.

The Jan. 7 filing in U.S. Bankruptcy Court for the Western District of Texas shields the 1.3 million-square-foot campus at 6801 River Place Blvd. from foreclosure. World Class has been feuding over the site with a lender, Tuebor REIT Sub LLC, since World Class defaulted in August on a $64 million loan.

A foreclosure sale had been scheduled for the afternoon of Jan. 7 on the steps of the Travis County Courthouse.

World Class bought the 156-acre property from 3M in February 2018. 3M, the conglomerate known for products such as Post-it Notes and Scotch Tape, has relocated to a new office in Northeast Austin.

The World Class entity that filed for Chapter 11 protection, Silicon Hills Campus LLC, lists estimated assets between $100 million and $500 million against estimated liabilities between $50 million and $100 million.

Law firm Jackson Walker LLP is listed in the bankruptcy filing as the largest creditor, with an unsecured claim of just under $125,000. Architecture firm Gensler has the second-largest claim, at $107,468. Gensler filed a lien against Silicon Hills Campus on June 14, claiming it was owed for work "relating to the master plan and conceptual architectural design." The third-largest creditor is IT management company SourceHOV, which has an unsecured claim of $51,286.90, according to the bankruptcy records.

The bankruptcy filing is another key moment in a months-long saga between World Class and Tuebor over the future of the site. World Class has said in court filings that the former 3M campus and a power plant on the site are worth a combined $200 million. Travis Central Appraisal District most recently valued it for tax purposes at $81 million.

 

https://www.bizjournals.com/austin/news/2020/01/07/world-class-files-for-chapter-11-bankruptcy.html?iana=hpmvp_aus_news_headline

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Nate toured a former Longhorn RB & NFL retiree around the campus numerous times. I sure as hell hope he didn't sign on any dotted line with Nate. Paul would usually meet clients in his white Bentley but occasionally he'd come screaming up in his black Lambo. The echo of that beast from beneath the porte-cochere was something.

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6 minutes ago, TwiceHorn said:

I looked, you have 90 days to start making contractual interest payments or the stay is lifted and foreclosure proceeds. 

I'm not directly involved, but I've heard that the standard play for many of the Paul/World Class investors is to get a receivership in place, get him away from the $, and figure out what to do with the property.

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19 minutes ago, DalTxHornFan said:

I'm not directly involved, but I've heard that the standard play for many of the Paul/World Class investors is to get a receivership in place, get him away from the $, and figure out what to do with the property.

that takes care of SEC/FBI.  His real worry should be Treasury.  they are going to make an example out of him because of his ties to foreign capital.  

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4 hours ago, Lobo said:

that takes care of SEC/FBI.  His real worry should be Treasury.  they are going to make an example out of him because of his ties to foreign capital.  

Dude was begging for more foreign money. Makes me wonder if it was money laundering

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  • 6 months later...
30 minutes ago, MagicSoccerSpray said:

 Remember when Paxton's office initiated an investigation into the falsified search warrants that resulted in the deaths of a Houston couple and five HPD officers getting shot? Me neither.

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43 minutes ago, MagicSoccerSpray said:

Seems to be standard investigate the investigators procedure, these days.  The levels of investigation in this instance rival Kevin Bacon, given Paxton’s shitassery.  

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