The Winter Park showroom long associated with architect and luxury home builder Phil Kean has been listed for sale at $3.3 million as the company’s construction arm moves toward the conclusion of a Chapter 11 bankruptcy reorganization.
The offering includes two adjacent commercial buildings at 952 W. Fairbanks Ave. and 1006-1008 W. Fairbanks Ave., according to marketing materials from CrossMarc Services. The property includes approximately 5,400 square feet of office and showroom space, 18 on-site parking spaces and frontage along one of Winter Park’s busiest commercial corridors.
For years, the larger building at 952 W. Fairbanks Ave. served as a showroom for the Phil Kean Design Group. The neighboring building contains two 825-square-foot suites with separate entrances facing Fairbanks Avenue, according to the listing.
“The quality, flexibility, and visibility of this property make it one of the more unique commercial opportunities currently available in Winter Park,” Stephanie D’Amico, vice president of CrossMarc Services, said in marketing materials accompanying the listing.
The property also includes upgraded interior finishes, extensive glass lines and a landscaped outdoor area between the buildings that could accommodate a courtyard, patio or gathering space, according to marketing materials. According to the listing, the property is being marketed to owner-users, investors and business operators seeking office, retail, hospitality or professional service space near downtown Winter Park, Interstate 4 and AdventHealth Winter Park, as well as nearby restaurants, retail and professional offices.
The listing comes roughly seven months after Phil Kean Designs Inc., the construction arm of the Phil Kean Design Group, filed for Chapter 11 bankruptcy protection under Subchapter V, a section of the bankruptcy code designed for small businesses.
Court records show the bankruptcy filing applies only to Phil Kean Designs Inc. Other affiliated companies within the Phil Kean Design Group, including Architecture by Phil Kean, Phil Kean Kitchens & Bath, PKD Studio, Phil Kean Real Estate and Winter Park Engineering Services, were not part of the filing.
According to the company’s reorganization plan filed with the court, Phil Kean Designs sought bankruptcy protection after a combination of pandemic-era supply chain disruptions, rising construction costs, project delays and litigation expenses placed pressure on the business.
The filing describes how the company, which serves as the construction arm of the Phil Kean Design Group, experienced project cost overruns and delays during the pandemic that contributed to disputes with clients and subsequent litigation.
One of those disputes involved an arbitration proceeding related to a construction project. According to court filings, an arbitrator initially ruled that neither side would recover damages but that Phil Kean Designs would be responsible for attorney fees and costs incurred by all parties, creating a potential liability exceeding $1.3 million. The arbitrator later amended the ruling on the same day the bankruptcy petition was filed, determining that Phil Kean Designs was entitled to recover more than $112,000 and would not be responsible for the opposing parties’ legal fees. The company ultimately recovered approximately $71,861 after resolving the dispute, according to the plan.
Even after the amended arbitration ruling, company leadership concluded that litigation costs and project-related expenses would be difficult to address within a short period without affecting operations and elected to pursue Chapter 11 protection, according to the filing.
The case has since progressed toward confirmation of the company’s reorganization plan.
During a June 9 hearing before U.S. Bankruptcy Judge Lori V. Vaughan of the Middle District of Florida, the court addressed a recently filed Internal Revenue Service priority claim of approximately $1.2 million. Vaughan questioned debtor’s counsel Daniel Velasquez of Orlando-based Latham, Luna, Eden & Beaudine LLP about the claim, which had not been anticipated in the plan.
Velasquez told the court the claim stemmed from payroll tax reporting issues involving a third-party payroll processor and said the company expected the IRS claim to be amended after federal officials reviewed supporting documentation.
“From the debtor’s perspective, all these payroll tax payments have been made,” Velasquez told the court.
After hearing from the parties, Vaughan said she would confirm the reorganization plan over creditor objections previously raised in the case. The judge also scheduled a post-confirmation status conference for Aug. 4.
In a subsequent interview with GrowthSpotter, Velasquez said the Fairbanks Avenue listing is not connected to the bankruptcy proceeding and involves property owned by another entity within the broader Phil Kean organization.
“The decision to start listing some property that the Phil Kean Design Group owns on Fairbanks is really a component of just the post-COVID era where they’re downsizing their office requirements,” he said.
Velasquez said the organization once employed approximately 50 people in office settings but now operates with roughly half that number due in part to remote work arrangements.
Meanwhile, Velasquez noted that Phil Kean Design Group is well-positioned to move forward as a healthy business operating from its 3,908-square-foot office next door at 912 W Fairbanks Ave.
“This gives them closure and really manages any risks associated with claims that arose before the Chapter 11 filing,” he said.
The next court appearance will be an Aug. 4 post-confirmation hearing, during which the company will provide Vaughan with a status report on the implementation of the reorganization plan.
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