New owner met with public officials over sale of Cape's former federal building

After months of failed attempts to connect, the new Texas-based owner of the former federal building met with Cape Girardeau County officials Thursday, a step that could reignite the county's efforts to buy the high-profile Broadway building.

RDRH Holdings Inc. president Majid Hemmasi also sat down with Cape Girardeau Mayor Harry Rediger and city manager Scott Meyer before returning to Austin on Thursday night, alleviating at least for now the mayor's fear that the building will sit idle indefinitely.

Hemmasi said he talked with Commissioner Paul Koeper and Treasurer Roger Hudson to inform them the building will officially go on the market soon with the assistance of local real estate agents. Hemmasi, 54, also gave the county a selling number, though he wouldn't say whether it was less than the roughly $800,000 that he cited as his general asking price.

"We discussed it," Hemmasi said. "I told them if they're interested, we'd be happy to sell it to them. They didn't say yes or no, but they said they'd get back to me."

Hemmasi has said he would sell to a government entity at a lesser price than to a private developer.

Koeper acknowledged Thursday that the parties did discuss the building and a price, which he also declined to divulge. The next step for the county is to discuss its next move -- if any -- during an upcoming closed-session meeting.

"I would think we would go back into closed session to talk about this more," Koeper said. "If we don't, then I would think that would be it."

Hemmasi's company became the building's new owner in February for $325,015, outbidding the county and setting back its plans to use the 45-year-old structure for office space until it can build a new consolidated courthouse. Presiding Commissioner Clint Tracy, who was out of town Thursday, stopped bidding in the General Services Administration's second online auction in the hopes of buying the building directly from whomever the new owner turned out to be.

Hemmasi is an Iranian-born former civil engineer and is also the owner of a fire-protection company. Hemmasi hopes the former federal building doesn't linger on the market, estimating it may take six months to a year to sell it if the county loses interest. He noted that the building is near several vacant buildings, which could make finding a tenant difficult.

"But we cannot afford for the building to sit," Hemmasi said. "It's not good for the building. It's not good for me. So I'm going to work hard to sell this building. If it sits vacant for very long, I will be very unhappy."

Hemmasi also filed the property deed with the county recorder's office, which is the first step in getting the former tax-exempt property back on the tax rolls. Hemmasi said he's not looking forward to paying what looks to be a large tax bill that serves as extra incentive to sell quickly.

While Hemmasi said he will argue to the IRS for taxing purposes that the market value of the building is $325,000 because that's what he paid for it, he later said he set his asking price at upward of $800,000 because the first auction drew larger bids.

The GSA had worked for years to unload the federal surplus property, including entering into private negotiations with the county, in which no agreement could be reached. Then, last year, it offered the building for sale during two online auctions. The county was the third-highest bidder offering more than $450,000 during the first failed auction.

What wasn't known publicly until Thursday was that the second-highest bidder during that auction was Hemmasi's RDRH, a fact he confirmed. After the top bidder backed away from its bid of $625,000 in October, Hemmasi said he learned that his $615,000 was second-highest.

The GSA approached him and told him the building was his if he still wanted it, but he said it was 60 days after he learned the building was going to someone else.

Hemmasi and the top bidder each forfeited $25,000 deposits after backing out. Hemmasi entered the second online auction in the hopes of getting the building for less than his original offer. His company owns more than 200 properties -- mostly in Texas -- which he generally buys to resell for a profit. He said he probably won't do much to the building by way of repairs, adding that it's already in pretty good shape.

Rediger said his meeting with Hemmasi on Thursday set his mind at ease somewhat. The mayor has said it would be unfortunate if the building sat vacant in such a visible spot as Broadway, which is being redesigned with its new streetscape.

"But Mr. Hemmasi said he doesn't want to hold anybody up and he's anxious to sell," Rediger said. "So I still have hope."

smoyers@semissourian.com

388-3642

Pertinent address:

339 Broadway, Cape Girardeau, MO