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Troubled Jacksonville housing complexes could soon be sold

Global Ministries Foundation's properties listed for sale in May

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JACKSONVILLE, Fla. – The owner of the Eureka Gardens apartment complex could be close to selling properties in Florida, Georgia, and Tennessee, according to an email from another nonprofit that had bid on the properties.

Global Ministries Foundation had listed Eureka Gardens, along with 10 of its other properties, for sale in May.  The portfolio of federally subsidized Section 8 properties was offered without an asking price.

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In an email to Jacksonville Mayor Lenny Curry’s chief of staff and chief administrative officer, W. Bart Lloyd, of Preservation of Affordable Housing, Inc. said that GMF did not select the nonprofit’s offer, and is proceeding with another purchaser. According to the email, the broker representing GMF told the Boston-based nonprofit that the winning offer was for the entire portfolio. Lloyd's nonprofit had only made an offer for the Florida properties, which include Eureka Gardens and Washington Heights.

Lloyd told the city that "the broker says that the proposed purchasers are a very reputable group -- but also notes that any buyer has a daunting task in front of them."

Global Ministries Foundation hired a real estate broker in May to evaluate the properties and estimate their market value. In addition to Eureka Gardens and Washington Heights, the GMF portfolio in Jacksonville includes Springfield Residential One, Southside Apartments, Market Street Apartments and Moncrief Village.

Eureka Gardens on Jacksonville's Westside and Washington Heights in Northwest Jacksonville have been the center of a monthslong I-TEAM investigation into deplorable living conditions at the federally subsidized housing complexes.

Our series of investigative reports led to the U.S. Department of Housing and Urban Development invalidating its own inspection score for Eureka Gardens, the city conducting a code-enforcement raid spearheaded by Mayor Lenny Curry, and a response on Capitol Hill from Sen. Marco Rubio, R-Florida, who successfully pushed for the passage of three amendments to overhaul the HUD inspection process.

Rubio also has requested federal investigations of GMF by the Justice and Treasury departments, HUD and a Senate committee.

City Councilman Garrett Dennis, who has been vocal in his criticism of how GMF handled the Eureka Gardens property, released a statement Thursday on the potential sale:

This marks a beginning of a new chapter for the residents of Eureka Gardens and the city of Jacksonville. I am committed along with the mayor and my colleagues on City Council to never letting this happen again. The pending sale shows what can happen when people come together to work toward a common goal. I want to commend the tenants association for banding together and exposing the horrific living conditions that they have endured for so many years. When the sale is complete, we look forward to meeting the new owners and establishing a partnership for a better Eureka Gardens and Washington Heights. We will continue to hold the new owner and any owner accountable for safe, secure, and sanitary housing."

GMF owns 61 properties in eight states, including several in Memphis, Tennessee, that are the source of a multimillion-dollar lawsuit by one of the foundation's investors.

The I-TEAM has attempted to contact Global Ministries for comment, but we have not heard back yet.