Property near Universal’s new land faces foreclosure

A Georgia investment firm is pursuing a $27 million foreclosure on property owned by Georgia businessman Stan Thomas’s company, which lost control of 475 acres in 2015 that Universal Orlando’s parent company eventually acquired.

The foreclosure was filed in Orange County Circuit Court on Oct. 18, on eight parcels of property near the Orange County Convention Center and Lockheed Martin’s Sand Lake Road campus.

The lawsuit, filed by Atlantabased AFF Universal, alleges that Thomas’s company, Universal City Property Management Company III, stopped making payments on the property in June. AFF is affiliated with Ardent Financial Fund.

Thomas and his companies have controlled large areas of land near Orlando’s tourism corridor since 2006, when he arranged a loan for $325 million to buy several properties in the area. But he fell behind in taxes and payments on that loan, according to court records. The 2015 foreclosure was for $285 million.

Orange County property records show Thomas also refinanced other properties with a mortgage modification from AFF Universal on Aug. 23.

Thomas has had grand plans for the area. One project that barely got off the ground, homes and retail called the Village of Imagine, eventually resulted in a new Westin hotel, now called the Westin Orlando Universal Boulevard. But the recession stalled any further construction.

Much of the land was also tied up in a lengthy and ongoing environmental cleanup effort from missile testing and other industrial uses by its former owner, Lockheed Martin. The area was previously known as the Sand Lake Road complex.

Universal has said it is planning two new theme parks on the property it acquired after the 2015 foreclosure. Thomas is suing Universal over that plan, alleging there are still private restrictions on the land that prevent a large-scale tourist attraction. It’s a completely separate issue from the zoning entitlements the Orange County Planning Commission green-lighted for the area.

Thomas’ lawsuit against Universal asks a judge to place an injunction on Universal’s land ownership company, SLRC Holdings LLC, blocking any tourist-attraction development. It also asks the judge to issue an order backing up Thomas’ claim as the enforcer of the restrictions on the property.

Universal has an aggressive expansion plan. In 2015, executives told analysts they want to open an attraction every year at each major location. Universal has parks in Orlando, Hollywood, Singapore and Japan.

Under previous ownership, Universal bought the property from Lockheed in 1998 and in 2003 sold it to Thomas and his company, Universal City Property Management.

In 2000, Universal was involved in placing restrictions on the property through a 55-page private Master Declaration — to prevent any competing theme parks from popping up on the land about a mile and a half from Universal’s two existing theme parks.