The brothers of the Sigma Alpha Epsilon fraternity didn’t know they were close to losing a roof over their heads.
But well-known Tallahassee businessman Dan Gilbertson — who owns the Potbelly’s bar a stone’s throw away on College Avenue — said he plans to pay an outstanding $4.2 million owed on the fraternity house before it’s set to go before the highest bidder in an online auction July 31.
Gilbertson played a pivotal role in the development of the fraternity house at 415 W. College Ave., according to the chapter’s housing history. He agreed in 2015 to work with chapter leaders and alumni on a plan to restore the property’s historic home and construct an adjoining apartment-style residence for fraternity members.
“There’s really not much to talk about. I can pay it off. It’s just business,” said Gilbertson, in a phone interview with the Tallahassee Democrat. The house is “not going to close. I have the money to just pay it off if I need to.”
A reporter drove by the house this week and no one appeared to be living there. Gilbertson said it’s summer so many students are away, but a few are there and “they’re all in separate apartments.” He said there are 16 to 18 apartments in the property’s rear.
The fraternity’s website says Gilbertson continues to own the property and, together with the property’s management company, conducts regular inspections intended to preserve the condition and long-term quality of the fraternity house.
Here’s what the foreclosure lawsuit said: The former Envision Credit Union filed a lawsuit against the property owner, 415 West College Ave LLC, in September 2025 and cited approximately $4.2 million is owned on the mortgage loan. State records show that Gilbertson is that corporation’s owner (or “member”) and manager.
When asked how the property became delinquent, Gilbertson said it was “a rate thing” and “there wasn’t any mismanagement.”
Located on roughly 0.5 acres, the fraternity house is adjacent to other fraternity properties along a busy stretch of College Avenue leading up to Ruby Diamond Auditorium less than a mile away.
It’s unusual to see a fraternity house in foreclosure, said Tallahassee-based Realtor Dedra Mitchell, who posted a video on her social media about the foreclosure. Mitchell, who specializes in foreclosure properties, said she doesn’t typically see several parties as defendants, and in this case, the city of Tallahassee.
“It’s usual in a million-dollar range,” said Mitchell, adding she’s seen apartment and commercial buildings in foreclosure. “This is the first time I’ve seen four point something million and so many named defendants on it. That’s very unusual.”
The national office of Sigma Alpha Epsilon Fraternity did not respond to a media inquiry.
In court documents, the city of Tallahassee filed an answer to the lawsuit that states it also has a recorded mortgage lien against the property. The four-page document said the city isn’t challenging Envision Credit Union’s foreclosure claim and admits its “mortgage is subordinate to Plaintiff’s lien on the Property.”
“As noted in its Answer, the City has a lien on the property by virtue of a mortgage that is subordinate to the Plaintiff’s lien on the property,” said City Attorney Amy Toman, in an email to the Democrat. The city, based on the court filings, wants the court to protect its interest in the event there’s any surplus foreclosure-sale proceeds after Envision’s liens are paid.
Envision Credit Union merged into Addition Credit Union in October 2025. Following Envision Credit Union’s merger with and into Addition Financial Credit Union, Addition Financial became the successor to Envision, a spokesman for Addition Credit Union told the Democrat.
“As a result, Addition Financial is the current holder of the loan involved in the foreclosure,” the spokesperson said in an email. “We are currently unable to provide additional comment due to the active foreclosure proceeding.”
But all that now is moot with Gilbertson’s assurance that what’s owed will be paid. There’s “really not any news here,” he said.
Contact Economic Development Reporter TaMaryn Waters at tlwaters@tallahassee.com and follow @TaMarynWaters on X.
This article originally appeared on Tallahassee Democrat: Businessman vows to save local fraternity house from foreclosure
Reporting by TaMaryn Waters, Tallahassee Democrat / Tallahassee Democrat
USA TODAY Network via Reuters Connect
By TaMaryn Waters, Tallahassee Democrat | USA TODAY Network
