Seidensticker strikes again

May 4 is a big day for Stephen Seidensticker. The owner of the Libby's Cafe + Bar and his real estate business partner Lemuel Sharp III are scheduled to acquire the buildings for Hillview restaurant, Morton's Plaza, Southside Deli, a 4,089-square-foot retail building, and a vacant lot in Sarasota's Hillview area in a foreclosure auction from the Griffin family.

The investors, who are operating as L&S Partners LLC, own the mortgage on the property, which has grown to $11.15 million through penalties and interest. Seidensticker and Sharp purchased the debt from Wells Fargo Bank NA last year for $6.4 million.

The partners will effectively bid the total debit amount and can only be outbid if another would-be buyer offered more than $11.15 million. In the exceptional case that they are outbid, the proceeds would go to L&S Partners up to the debit amount with the remainder going to the the Griffin family anyway.

“Lem and I just felt it made sense,” Seidensticker says. “We are very familiar with the properties and tenants. Of course this would also solidify [Libby's] position over there.”

The five parcels have been under a legal cloud since at least 2010. Wells Fargo filed a foreclosure suit against Carla and William Griffin and several of their real estate entities Dec. 27, 2010 for non-payment on a mortgage and a swap transaction. Wells Fargo was also seeking damages and payment of property taxes for 2008 and 2009.

In November, Joe Hembree of Hembree & Associates Inc. was appointed receiver to manage the rental business.

In one of the stranger twists of the foreclosure process, in December, L&S Partners filed an emergency motion for contempt against William Griffin and John Ford Griffin over an unapproved withdrawal and a bank wire in November ($153,165.32 and $8,408.65 respectively) and the transfer of a bank signatory card to William Griffin. Ultimately, those accusations of contempt were dropped, according to Seidensticker.

The partners don't plan to pursue the Griffins for any deficiencies after the auction.

The properties acquired include:
• 1924 S. Osprey Ave., the 23,948-square-foot Morton's Plaza
• 1907 S. Osprey Ave., the 10,205-square-foot Libby's Cafe + Bar
• 1931 S. Osprey Ave., 4,089-square-foot retail building housing the Paper Tree
• 1825 Hillview St., the 2,613-square-foot Southside Deli
• 1821 Hyde Park St., 8,198-square-foot lot.