More Crescent Resources and LandMar Financial Problems Surface
LandMar faces a foreclosure in Jacksonville and Crescent shuts down construction of a nearly completed Tennessee office building.
Palm Coast, Florida – May 15, 2009 – The recent announcement by Duke Energy that its real estate joint venture may file for bankruptcy raised eyebrows in Palm Coast, Florida where Crescent Resources and its local subsidiary LandMar Group combine as the area’s second largest real estate developer. Crescent affiliates own four golf courses and multiple development properties in the area. The company is presently saddled with $1.4 billion in debt. News from Jacksonville, FL and Franklin, TN indicate Crescent’s problems may have a broader base.
The Jacksonville Economic Development Commission authorized its attorneys to begin the foreclosure process against LandMar Group. LandMar had notified the commission that it would not be making an upcoming $3.1 million debt payment associated with a $450 million downtown Jacksonville project known as the Shipyards. The developer has until May 21 to make the payment before going into default. The $485 thousand real estate tax bill will not be paid either.
In Tennessee, Crescent has stopped construction of a nearly completed 164,000 square foot office building on the east side of Cool Springs after a contractor filed a $3 million lawsuit for non-payment of completed infrastructure work. The building had been scheduled to open in March. A nearby Crescent building opened more than a year ago is said to be only 3% occupied.
My Take
Well, seems to me that they, Crescent/Landmar, has just given the 30 day notice that they are going to file bankruptcy proceedings.
See ya! Down the middle – Golf I