Vacant downtown Louisville tower sells for $4.67M at auction

A long-vacant downtown Louisville office building tied up in foreclosure—and plagued by security issues and vandalism—sold at auction on April 24.

The Kentucky Home Life Building, located at 237-247 S. Fifth St., fetched $4.67 million during a Jefferson Circuit Court Master Commissioner’s sale.

The boarded-up structure, sitting at the corner of Fifth and Jefferson streets, had been in foreclosure proceedings for over a year.

Mississippi-based Fosco LLC, which held the building’s loan, filed a lawsuit against KHLB Properties LLC in December 2024. The suit alleged the owner defaulted on two loans and had not made payments since May 2024.

According to court filings, more than $12.23 million was owed on the property as of February, including mortgages, unpaid taxes, and code enforcement liens.

Fosco was the only bidder at the April 24 auction. Company representatives declined to comment, and their attorney did not respond to media inquiries.

The 19-story tower, built in 1912 and originally called the Inter-Southern Insurance Building, was added to the National Register of Historic Places in 1980.

KHLB Properties, affiliated with Texas-based Newstream Cos., purchased the building in 2021 for $15 million. At the time, plans included redeveloping it into a mixed-use space with a hotel, apartments, and retail.

The property last sold in 2014 for $5.2 million. A recent appraisal valued it at $7 million but described its condition as “poor.”

Ike Thrash, a member of Fosco and managing director of Thrash Group, has been involved in development projects nationwide. His firm previously applied to Louisville’s Downtown Building Conversion Program, proposing a mix of hotel, residential, and commercial uses for the site.

City officials previously expressed hope the redevelopment could revive the deteriorating structure, provided the building remains secure during the process.

In 2024, authorities evacuated five people from the property following repeated reports of theft.

The sale comes as KHLB Properties continues to challenge aspects of the foreclosure in the Kentucky Court of Appeals, including the appointment of a receiver to manage the building.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.