Crescent Resources’ Grand Haven Golf Course Sale Falls Through
Buyer reportedly backed out after discovering $4.2 million membership deposit obligations.
Palm Coast, FL – October 23, 2010 – Grand Haven Golf Club, a Crescent Resources property in Palm Coast, FL went under a purchase contract four weeks ago. The deal was close to closing. A survey was begun. But now the deal is dead. During due diligence, the prospective new owner reportedly discovered a membership deposit liability of $4.2 million. I was told his attempt to renegotiate the sale price was not fruitful, so he terminated the purchase contract.
Grand Haven Golf Club is private, but is not an equity club. Members pay a "refundable" deposit upon joining. The initiation deposit grew to $35,000 per membership during the peak of the real estate bubble before being reduced recently. With some restrictions, the deposit, less a transfer fee, can be recovered by members upon resigning from the club. Membership deposits are said to total $4.2 million at this time. Anyone purchasing the club inherits the membership return obligations.The CB Richard Ellis website has removed the "UNDER CONTRACT" notice on the Grand Haven listing. The current asking price is $3,850,000. There have been other potential buyers, including a group of existing Grand Haven resident club members, but until a deal is made, it will be business as usual at Grand Haven.
The Grand Haven Golf Club currently carries a $2,28,843 assessed value. In 2006. In 2006, it was assessed for $7,635,290.
Charlotte N.C. based real estate developer Crescent Resources, recently exited from Chapter 11 bankruptcy, has been shedding its Florida assets. Crescent also owns The Grand Club in Palm Coast. The Grand Club is comprised of three golf courses (Pines, Cypress, and the closed Matanzas course). Listed for $2.2 million, the club plus 183 entitled residential lots is under contract.
Grand Haven
Guess I can’t understand why Cresent didn’t ‘wipe out" the equity deposits and a debt durning bancrupcy. The gfeberal purpose of bancrupcy is to discjharge debts so the enity can start fresh. The peoplke who entered into this Club should have known this was a distinct possibiity. Now the only one foolish enough to "bailout" Grand Haven will the the City r County. Thry are the only ones whjo pay more for property than it’s worth. Interesting that the equity debt is so much more than the value of the physical assets.
Grand Haven Golf
I am not surprised that Crescent Resources did not disclose the outstandind money of $4.2 million. Cresent Resourcse that owns Grand Haven Golf Course, and Land Mar which owns the other three golf courses, which all filed for Chapter 11 bankruptcy, are the epitome of sleeze.
River hall
Toby, my understanding Hawk’s Haven llc’s- River Hall,were purchased by greenpointe-sale went through this past Tuesday. Everything quite and no communication as usual
Brian
Hey John Boy
My understanding is that the Bankcruptcy judge would not allow Crescent to discharge the "down stroke" funds from the GH members.
Now, does the same apply to the Grand Club member "down strokes" and will that create a problem for that sale?
See ya! Down the middle – Golf I