Wednesday, February 11, 2009
By RYAN DEZEMBER, Staff Reporter with Mobile Press Register
Wachovia Bank has won a $20.4 million judgment against the developers of Bon Secour Village, who consented in advance to the ruling and have joined the lender in trying to sell about 900 acres of the Gulf Shores property to clear the debt.
"There was no reason to have a trial because we know what we borrowed and we know what we owe," said David Anderson, a Birmingham-based lawyer who represents Bon Secour Village LLC and two of its principals. "We don't dispute the debt."
Ending the federal foreclosure case, Anderson said, allows the bank and the developers to concentrate on selling the property, once pegged to be home to a $500 million town-within-a-town development.
U.S. District Judge Kristi DuBose signed an order last week requiring Bon Secour Village LLC to repay the $20,416,689.17 outstanding on a loan it took out with the North Carolina lender in late 2005. The loan, originally for $20.36 million, was used to buy 26 acres on the Intracoastal Waterway and 880 acres on the north side of Waterway Boulevard West, as well as provide cash to build a 3,500-square-foot sales office and a 60-slip marina.
The quintet of developers who made up Bon Secour Village defaulted on the loan in 2007 and the property - much of it piney woods along the Intracoastal Waterway's northern shore - has been managed by a court-appointed receiver since then.
The receiver, Jeffrey Granger of the Tampa, Fla., based Focus Management, will have spent nearly $400,000 on the property since taking it over, much of that money going toward legal bills, marketing expenses and his own company's fees, according to a recent court filing.
In that Jan. 20 filing, Granger's lawyer, Jennifer Harris, reported that while a court-ordered auction of the property last fall yielded no acceptable bids, it did generate interest in the project from investors in 14 states and several countries.
Of the 69 parties that inquired about the property, 38 completed confidentiality agreements that allowed them to bid on the project, Harris wrote. Auctioneers Tranzon Driggers will continue to market the property and there is a belief that changes in "credit conditions" and other factors "will create an environment conducive" to selling it, Harris wrote.
"With the holiday season and its traditional slowdown in commercial transactions now over, expectations are high that the former high bidders will submit revised offers, while other interested parties will submit new offers," she wrote.
Should the property sell, the proceeds would be used to clear as much of the $20 million judgment as they can, Anderson said.
"Being practical, the property is probably not going to sell for the value of the judgment," he said.
The company has no assets other than the property, Anderson said, and faces several unresolved lawsuits in state court. Additionally, three of Bon Secour Village's partners - Cullman brothers Josh and Eddie Canaday and Michael Knight of Destin - filed for Chapter 11 bankruptcy protection last summer, reporting debts, in each the Canadays' cases, exceeding $160 million.
Anderson said that the other two Bon Secour principals - Atlanta developer Rick Skelton and Birmingham businessman Clint Guthrie - remain interested in helping to develop the 1,000 acres they assembled, which, because of special zoning, are far more valuable together than if they were broken up in individual parcels.
"It needs to be developed and it will," Anderson said. "My clients will lose some money and the bank will lose some money but it will be developed."
Tinsley Myrick, RE/MAX of Orange Beach, AL, February 10, 2009
I attended our monthly sales meeting this morning led by broker/owner, Patrick Daily. Here are the some of the highlights we discussed:
ARE WE THERE YET?
Patrick feels that we will see banks and lenders freeing up funds by this summer. How do the banks make money? They make money by lending it. The closer we get to a real estate "bottom," the more comfortable they will feel in loosening their standards because of less risk for the buyers and the bank.
Interesting point: Once we see the banks loosen the funds, we've already missed the bottom!
Real estate sales are up 37% in California and Nevada. They are up 17% in Florida. A large majority of these sales are foreclosures and short sales. It doesn't really matter what type of sales they are .... It's real buyers buying property!!
IRAs: IRAs are being converted into real estate. They are buying property that will cash flow for .50 on the $1.00. With a respectable amount of time to retirement, these properties have time to appreciate. There are strict guidelines for self directed IRAs. If you buy real estate yourself for your IRA, it must be at "arms length" and you can't use it yourself. The IRA must be able to totally support the property.
SAN CARLOS AUCTION held on February 7, 2009
There will be more auctions as banks get audited and are forced to move their inventory that isn't moving.
MORTGAGE UPDATE
WHAT THE MEDIA DOESN'T TELL YOU!
These numbers tell me it's not as bad as everyone is saying! It also says 40% of the foreclosures are in our Second home/investment market. Great opportunity for buyers looking to pick up some deals.
As we heard in the RE/MAX Foreclosure Summit last month in New Orleans, we will have to contend with foreclosures for the next 18 months to 3 years. A loan officer with Countrywide told me that they are not even halfway through their foreclosures. This isn't the best of news for sellers trying to compete with foreclosure listings. The good news is that property can be sold if it is priced "right."
Alabama ranks 40th in foreclosures. Not bad!
Good stuff....food for thought.
By Tinsley Myrick, RE/MAX of Orange Beach, February 9, 2009
I attended the auction at San Carlos in Gulf Shores on Sat, February 7, 2009. It was held in a tent in the parking lot by the National Auction Group, the same company that handled the auctions at Crystal Tower and Emerald Greens, both in Gulf Shores. An investment company was holding somewhere around 75 San Carlos condos that had never been occupied. Most bidders in the auction got some good deals ..... but others got some REALLY GREAT deals. The best deals to be had were on the interior 3 bedrooms. 5 sold at $250,000 + the buyer's premium = $275,000. These units are 1419 sq ft so that means they got them for $193 per sq ft for a Gulf Front condo! Incredible. When someone wins a bid, the auctioneer will ask if anyone else would like one at that price. Once someone won the bid at $250,000, a bunch of bidders rushed the stage trying to get one at that price, as well. However, the auctioneer said they were only allowed to give 5 at that price for that round and started the next bid at $275,000, which is still not a bad price for a large three-bedroom condo in a Gulf Front building that opened in 2006. Tommy Green, an investigator with Gulf Shores Police Department, was on-hand to assist with crowd control. Tommy was very visible when everyone was rushing to the front waiving their bid cards. Karen Way of Clear Title was onsite handling cash closings and prep work for people that were to close within 30 days. She said, all in all, they sold 61 condos at the auction. (Only 30 were promised....but they typically go over the promised number if things are going well from the seller's prospective.) Although there a couple of 4 bedrooms sold and some two bedrooms, most of the units sold for three bedrooms.
I think this will help the market overall to have these units sold and owned by individuals rather than an investment company. Lenders have been reluctant to finance units in San Carlos since the building opened in 2006 because they considered it "investor saturated" and worried about the health of the association. Hopefully this will clear up those concerns. Plus, it is my hope, that having these units "off the table" will attract buyers to more of what's being offered in other buildings in Gulf Shores and Orange Beach. This auction has been a bit of distraction from other good deals available on the island. I have other listings to sell and I'm ready to sell them! Finally, I'm not alone in believing that the auction (or any auction) has gotten people excited about our market and in a buying mode!
Orange Beach enters ecotourism business
Two-hour trips through Back Country Trail will begin this week Sunday, January 25, 2009 By RYAN DEZEMBER Staff Reporter
ORANGE BEACH - Eager to tap into the growing ecotourism market and show off the diverse ecosystems within its boundaries, the City Council has approved a resolution setting guidelines for paid tours of the Back Country Trail.
"We're just trying to expose our Back Country Trail to as many people as possible," Mayor Tony Kennon said last week. "It's just a great asset to have."
Several years in the making, the Back Country Trail is a network of about 16cm HALF miles of paths that traverse a variety of ecosystems, from pitcher plant bogs and ancient maritime forest to pine savanna, swamps and scrub-covered dunes.
"There are places there where you're hard pressed to believe you're on Pleasure Island," Coastal Resources Manager Phillip West said.
The tours will begin this week. They'll last about two hours with up to another hour set aside for participants to peruse the Orange Beach Museum at no charge.
The trips will be conducted on six-person golf carts, which means each one is limited to five participants and the guide. Each person will be charged $15 to go on the trip, but a group of five will only have to pay a total of $60 - cash or check only.
Of course, the trail and surrounding public lands will still be free to anyone who wants to visit on their own .
West said the tours will be accessible to people - young, old or disabled - who may not have been able to reach the deepest parts of the trail, but will also allow for the entire trail to be viewed in a two-hour stretch.
Most tours will be led by Larry Ellis, who was hired in 2006 as the city's forester but has since taken on duties related to wildlife. Ellis, who has a forestry degree from Auburn University, has worked for the Nature Con servancy and was, at one point in the 1970s, an intern at the Gulf State Park, portions of which the trail runs through.
In addition to discussing the flora and fauna along the trail, Ellis said he hopes to tie in cultural and historical tidbits into his talks during the tours.
For now, tours can be booked by calling Ellis at 251-981-6979.
Ecotourism is one of the fastest-growing segments of the tourism industry and Alabama's beaches are eager to cash in, said Mike Foster, the Alabama Gulf Coast Convention and Visitors Bureau's vice president of marketing. To that end, the organization has for several years hosted conferences on sustainable tourism and watchable wildlife.
Visitors to Alabama's beaches aren't content to sit on the beach for seven days and head home anymore - they want things to do, Foster said.
"The reality is we as a destination have to diversify what we offer," Foster said. "Any kind of group that is down here is looking for new experiences."
West said city officials are currently surveying trail users and have found that it "has spurred some economic activity, which I think will be surprising when we present the data."
These users may have bought bikes or binoculars or hiking boots, West said. They might also tack on extra days to a stay at the beach or even make a special trip to enjoy the trail, he said.
"Hopefully it will become a destination for people to enjoy in many forms whether it's nature watching, exercise or just solitude," West said.
Kennon and West said that they are also contemplating some sort of water-based ecotours, exploring the variety of aquatic habitats - from the Gulf of Mexico to the back bays to the islands north of Perdido Pass - around Orange Beach.
The Very Latest Gulf Shores and Orange Beach, Alabama Market Conditions
Gulf Front Condos SOLD since December 19th, 2008
Gulf Front Condos JUST LISTED since December 19th, 2008
There are opportunities in the Gulf Shores and Orange Beach marketplace right now for the prudent buyer in the area of foreclosures, bank owned properties and condos that are offered for sale in a "short sale" situation. If you are interested in purchasing a condo, I would be happy to speak with you. My experience, training, market knowledge, contacts and enthusiasm can help you accomplish your objectives finding just the right condominium, should you be considering the option.
Tell me...
•1.) What area would you like to receive listings in? Either Gulf Shores or Orange Beach or does it matter?
•2.) How many bedrooms and baths would you like?
•3.) What kind of special amenities would you like? On the beach? Gulf front?
•4.) What is the MAXIMUM you would like to spend?
•5.) How soon would you consider buying a condo?
FOUR SEASONS 604W - 3 BEDROOM 3 BATH - ASKING $425,000
Are you interested in a 3 bedroom 3 bath Gulf condo? If so, I would like to speak with you ASAP. You can reach me, Scott Myrick of Re/Max, at 251-269-3114. Call me now. Four Seasons 604W is more than you may realize. It is more than just a beautiful place, more than just the friendly people who live and vacation here. It is more than sand and sun and waves rolling onto a beautiful of sugar-white beach. Four Seasons is all these things and more. Taken together, these unique attributes create a Gulf front condominium with a welcoming sense of place, perfect for families. Only condo in Orange Beach that has its own Gulf fishing pier. Fun!
Lei Lani Tower 503 - 2 BEDROOM 2 BATH - ASKING $339,000
OBSESSIVELY MAINTAINED right down to the front door! New furnishings! Must see! You will have fun with Lei Lani 503T. Beautifully decorated throughout. Perfect for anyone who yearns to move right in and not have to do a thing. Near miles of undeveloped beach. Perfect for long afternoon walks along the water. Coveted 2 bedroom in popular building. Well constructed. Inexpensive dues.
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Gulf Coast Real Estate Professionals - Specializing in the Alabama Gulf Coast (Gulf Shores, Orange Beach) & Perdido Key, Florida. Certified Luxury Home Specialists (CLHMS)-Million Dollar Guild.
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