In The News

By Bridgett Weaver – Reporter, Louisville Business First
Apr 14, 2017, 2:37pm EDT

The woman behind CycleBar in St. Matthews is opening a second workout concept just a few doors down from her spinning studio.

Katie Ryser will open Club Pilates in June at 4600 Shelbyville Road, Suite 116, right beside Trader Joe’s. It is a franchise of a concept that is based in Orange County, Calif.

Club Pilates will operate in a 2,400-square-foot space, which is about to undergo an extensive renovation. Tommy Edwards with Hagan Properties Inc. handled the leasing deal. Ryser declined to discuss terms of the lease.

Ryser said construction crews will be gutting and renovating the inside of the building over the next month. It will include a studio with 12 reformers (a pilates-specific piece of training equipment) and a private room with two reformers that include a tower attachment.

She said the workout traditionally is a very serious one, but she hopes to offer a more fun and light-hearted experience with music and energy.

Although the pilates workout system is traditionally considered a women’s workout, Ryser said the goal is to offer a good, thorough workout option for everyone — even men.

“Pilates has sort of a weird reputation as being pretty exclusive and something for older, wealthy women. But it’s not that way at all,” Ryder said. “It’s actually a strength training, core-building, muscle-elongating practice that is a very important part of almost every professional athlete’s workout.”

Both men and women can really benefit from the workout.

“There never needs to be a gender assignment to this type of fitness, to any type of fitness,” Ryser said. “And we love shattering stereotypes.”

She said the goal is to make it more accessible to the community as a whole instead of the wealthier clients by offering a lower price-point than most specialty gyms.

“The way we make it work is with a lot of classes and a lot of clients,” Ryser said.

Ryser just opened the CycleBar in November and said the spinning studio has been successful.

“The success from CycleBar really gave us the chance to branch into pilates, which is really not a strong presence in Louisville,” she said. “(Pilates) is so integral in the coastal cities and it’s time to bring that to Louisville and get Louisville a little more up to speed.”

She said when the studio opens in June it will start with 28 classes per week, but will quickly ramp up to 60 per week. Prices will range from $169 for a monthly unlimited pass to $79 for 4 classes a month. Ryser said the first 50 members to sign up will get 20 percent off for their first year.

By Marty Finley  – Reporter, Louisville Business First
Mar 9, 2017, 12:07pm

A new upscale apartment complex slated to cost $45 million has started welcoming its first tenants.

Wendy Hagan, an owner and developer with Louisville-based Hagan Properties Inc., told Louisville Business First this week that the firm pre-leased 40 units of the 356-unit 9910 Sawyer Apartments, a sprawling complex that will have 22 apartment buildings.

The project, which backs up E.P. “Tom” Sawyer State Park, will encompass nearly 400,000 square feet of apartment space alone.

“Demand is strong, and we anticipate absorption of approximately 18-20 units per month,” Hagan said in an email to Louisville Business First.

The first residents moved in this week, with more slated for move-in by the end of March, Hagan said in an interview earlier this week.

The project, which is being financed by the Louisville offices of U.S. Bank, started a year ago and is expected to wrap construction by March 2018. Hagan’s construction company, HCC LLC, is the general contractor for the development, working with about 50 local subcontractors. Hagan Properties manages the property.

The complex is on 24.5 acres owned by Hagan Properties at 9910 Shining Willow Drive, off Westport Road.

The developer and its construction firm have about 10 employees on site now and expect to have 27 to 30 employees at the complex by the end of the year.

Hagan said the one-, two- and three-bedroom units start at about $990 per month, with larger three-bedroom units at just over $1,600 per month.

The units range in size between 712 and 1,400 square feet with a wide selection of features, including granite countertops, subway tile back splashes, balconies and patios with French doors, stainless steel appliances, European cabinetry, barnwood-style flooring, large walk-in closets, linen closets and kitchen pantries.

Some of the units have attached garages, Hagan said.

9910 Sawyer Apartments also has a 6,000-square-foot clubhouse with a lounge, café, business center, covered patio, outdoor kitchen and lounge, a saltwater swimming pool with cabanas and a fire pit, outdoor seating area, outdoor fireplace, a pet salon, two dog parks, a bike repair station and electric car charging stations.

The project has been years in the making. As we previously reported, a group called Vision for Integrity and the Expansion of Westport Road, or VIEW, opposed the building of the apartment complex and sued Hagan Properties and Louisville Metro Government. The size of the complex was one concern outlined in the group’s lawsuit.

A judge ruled in favor of Hagan Properties, and VIEW appealed.

Eventually, a settlement agreement was reached. Terms of the settlement agreement were not disclosed. but Hagan said last year that the company agreed to drop plans for three-story buildings in the complex.

She has said the site’s proximity to shopping at the Paddock Shops and Springhurst Towne Center and to interstate highways make it an ideal fit for new multi-family housing.

In addition to 9910 Sawyer Apartments, Hagan plans to start construction on another complex, Victory Knoll Apartments, in August on 33 acres at Blankenbaker Parkway and Interstate 64.

The 470-unit apartment complex will cost $61 million and should be completed by the third quarter 2019.

“This will be the same product type as 9910 Sawyer Apartments but will include two- and three-story buildings,” Hagan said in an email.

By Bridgett Weaver  – Reporter, Louisville Business First
Dec 2, 2016, 4:39pm EST Updated Dec 2, 2016, 4:55pm EST

The Kentucky Court of Appeals ordered Porter Bancorp Inc. (NASDAQ: PBIB) the Louisville-based parent company of PBI Bank, to pay more than $10 million to Signature Point Condominiums LLC, Signature Point Apartments LLC and Signature Point KTC.

The court on Friday found PBI responsible for six different claims made by the prosecution, including fraud and the breach of the duty of good faith.

Louisville-based Zielke Law Firm, which represented the condo groups, sent a news release out explaining the situation that led to the dispute.

The claims stemmed from a 2006 transaction in which Scott Hagan, a real estate developer bought 90 acres of properties in eastern Jefferson County to create condos and other upscale residential developments. According to the court of appeals written decision, U.S Bank originally provided the financing for the purchase, but PBI took over the financing in 2007 at Hagan’s request. PBI provided a $25 million loan to Signature Point, split evenly between a $12.5 million revolving construction loan and a $12.5 million revolving development loan. A revolving loan allows for the loan amount to be withdrawn, repaid and redrawn again in any manner and as many times as needed until the the arrangement expires.

In 2010, with the real estate bubble burst and the real estate market in shambles, PBI and Signature Point negotiated a deal that allowed PBI Bank to hold the deeds to the property while letting Signature Point out of the loan agreement. PBI took the property in lieu of foreclosure, agreeing only to provide Signature Point with a right of first refusal before it sold the property to be developed.

To get Hagan to agree, the Zielke release said, the bank assured him that no one was interested in the property, a statement found to be fraudulent by the jury. The appellate court’s decision explains that only five days before making the agreement, there was a letter of intent from another company to buy at least one of the properties.

Signature Point was awarded $1.5 million in compensatory damages plus $5.5 million in punitive damages for a total of more than $7 million after the 2013 trial.

The appellate court also allowed to stand a 12 percent interest rate enacted in the trial court, despite several attempts by PBI to have the percentage lowered. Including the interest, which accumulated at a rate of $3,248.70 per day since the trial ruling in 2013, the complete amount PBI Bank must pay is $10,099,134, the Zielke release said.

The decision comes after a particularly volatile time in PBI’s history. The company has undergone changes in leadership and management due to problems, like this lawsuit, that stemmed from mismanagement during the Great Recession.The bank has been struggling to come out from under the dark cloud left behind by former management since it was replaced.

“This is part of all that bad business legacy that we’re trying to overcome from the recession years,” Kerry DeMuth, director of marketing and communications said in a Friday afternoon interview. “This was totally previous management.”

DeMuth said this lawsuit is part of a continued effort to clean up those past mistakes.

“None of those players are part of the team anymore,” she said. “The bank representation that initiated those business deals is no longer part of the bank.”

PBI Bank borrowed $35 million from the Troubled Asset Relief Program in 2008 under the Capital Purchase Program in an effort to breathe new life into the bank and repaid the loan in 2014. The company continues to operate under a consent order it agreed to with the Federal Deposit Insurance Corp. and the Kentucky Department of Financial Institution.

“We are very disappointed with the court’s decision regarding this legacy issue,” John Taylor, the bank’s president and CEO, said in a news release. “However, the bank’s capital and liquidity remain strong and its mission to serve our customers remains unchanged. At this juncture, we are conferring with out legal advisers and evaluating the merits of further pursuing the appellate process.”

DeMuth said it is still being decided how the bank will move forward with further appeals. She said officials plan to take some time to consider the remaining legal options that are available. No matter how they proceed, the bank is confident in its current position.

“Even if we have to pay the full amount, it’s not going to kill us,” DeMuth said. “We planned for the worst-case scenario.”

By Marty Finley– Reporter, Louisville Business First
Sep 16, 2016, 3:18pm EDT Updated Sep 16, 2016, 3:43pm EDT

Louisville-based Hagan Properties Inc. has signed a long-term lease with the U.S. Postal Service after word came in May that the USPS planned to vacate Shelbyville Road Plaza by the end of the year.

Tommy Edwards, a retail leasing representative with Hagan Properties, declined to disclose the lease terms when reached by phone Friday, but he said the new deal will keep USPS at the center for several more years. The post office has had a presence at Shelbyville Road Plaza since the early 1970s. It operates a retail outlet and distribution services there.

Edwards said in a news release that the deal came together because the city of St. Matthews and local residents “voiced their desire that the USPS remain at Shelbyville Road Plaza.”

Edwards said the post office occupies more than 22,000 square feet of space at the nearly 400,000-square-foot shopping center, which is almost fully leased.

Negotiations appeared to break down between the two sides earlier this year, creating concern about USPS’ future commitment to the center. Talk had recently turned to USPS looking for alternate locations.

Edwards told us in May that he received a call from USPS representatives that the Postal Service would vacate its longtime home by Dec. 31. Edwards said the call came as the two sides were negotiating details of a long-term lease extension that just needed a signature.

And Susan Wright, a representative with the USPS corporate communications office, said at the time that USPS had not made a final decision to leave the center and was still interested in negotiating the lease.

USPS confirmed the lease agreement when reached Friday.
“We look forward to serving our many loyal customers at the St. Matthews Station on Shelbyville Road,” said Louisville Postmaster Joe Meimann in a statement.

Edwards said Hagan held out hope that USPS would stay in the space, but the company moved ahead in contacting potential retailers, restaurants and furniture stores that have expressed interest in the location in the past.

In other recent activity at the shopping center. Quest Outdoors recently opened an expanded store in the shopping center, taking the former Borders space.

Also, Carter’s Inc., the parent company of Carter’s, Osh Kosh B’Gosh and other baby and children’s apparel brands, opened a store at the shopping center this summer.

Edwards said Cyclebar, a premium indoor cycling franchise, is the latest tenant planned for the shopping center, taking about 3,000 square feet. He said it should be open by the end of the year.