Reynolds’ Downsized Plans for Former Ginn Development in N.C. Signal Changes for Conservatory and Gardens in Palm Coast
Average lot price at the Laurelmor launch was $625,000. New prices range between $125,000 and $175,000. Small village with some public access replaces planned opulent clubhouse.
Palm Coast, FL – August 6, 2010 – An article found in the Winston-Salem Journal describes Reynolds Plantation’s plans to reposition Laurelmor. Reynolds subsidiaries purchased the development from Ginn-LA (Bobby Ginn and financial partner Lubert-Adler) in December 2008 when Ginn-LA defaulted on a $675 million loan on which Laurelmor was listed as collateral. The 6,212-acre development is near Blowing Rock, N.C.Reynolds renamed the community Reynolds Blue Ridge last year. At the same time they announced that the project would be repositioned to meet current market conditions.
Laurelmor lot prices at the original sales launch averaged $625,000. New lot prices in Reynolds Blue Ridge range from $125,000 to $175,000 according to W-J Journal reporter, Monte Mitchell. At those prices, a buyer could build a home for less than the original lot prices. Bobby Ginn’s plan for an opulent clubhouse was shelved in favor of a small village concept that includes public access to the restaurant.
Another division of Reynolds Plantation is managing Ginn-LA properties in the Palm Coast area, including two that are still in various stages of development. Reynolds has already indicated they plan to reposition The Gardens at Hammock Beach, which originally was going to be anchored by a Fred Couples-designed golf course. Only 14 lots were purchased when phase one of The Gardens was launched and the project was put on hold. Reynolds is working to reacquire those lots with an eye to repositioning the development. Changes might include eliminating the golf course and re-platting phase one lots. Reynolds Blue Ridge changes hint of what can be expected in a future launch of The Gardens.
The Conservatory is another Reynolds repositioning project. Unlike Reynolds Blue Ridge, Conservatory lots were all sold (at prices between $329,900 and $529,900) and the opulent clubhouse is completed. Downsizing the clubhouse is not an option. Taking a clue from Reynolds Blue Ridge by allowing public access to The Conservatory clubhouse when it reopens would help underwrite operating costs. Market forces have repositioned Conservatory lot prices. To complete its repositioning, The Conservatory must downscale architectural and landscaping requirements and reposition association fees and club membership options. Reynolds Blue Ridge changes indicate Reynolds recognizes today’s market realities.
Gardens
Toby,
Not sure why but I was under the impression that nothing at the Gardens actually sold. You say that they are trying to reacquire those lots. Any idea if they are buying them from the original buyers or from the banks? Basically, did the people hold onto them or bail when they realized they got scammed?
RE: Toby
Good for those poor people that bought in there. I’m sure in a lot of cases they are coming out even but at least they are getting rid of what I am sure was a nightmare. Now if we can just figure out Conservatory……and about a dozen other projects.
Reply to John
I’ve found six transactions, all from the original purchaser back to the Hammock Beach River Club. Two are deeds, four are contracts for deed. At least in some cases, the developer has agreed to pay some cash with the balance on a mortgage.