Tesoro and Quail West Doing Well Without Ginn
Members get Quail West’s two courses and clubhouse debt-free. Both Tesoro courses and clubhouse are open with help from developer subsidies.
Palm Coast, FL – December 31, 2009 – Two golf course communities once owned by Ginn-LA (Bobby Ginn and financial partner Lubert Adler) were sold at a bankruptcy auction this year. The developer owned assets of the two communities, along with those of two other Ginn communities, had been pledged as collateral for a $675 million non-recourse loan brokered by Credit Suisse. Ginn-LA defaulted on the loan leading to a Chapter 7 bankruptcy at Tesoro, in Port St. Lucie and Quail West, near Naples. Both communities seem to be better off as a result.
Quail West
Quail West Development was the successful bidder at the bankruptcy auction picking up 262 residential building lots, a sales center, two Arthur Hills-designed golf courses, and a 70,000 square foot clubhouse for a reported $13.5 million. Ginn had recently spent millions upgrading the clubhouse. Quail West Development is owned by a few Quail West residents and the principals of a construction company already active in the community.
Effective January 1, the developer will turn over the golf club assets to the Quail West Foundation, which will take over the club while the developer concentrates on property sales and development. The club will be debt free. Outside memberships will be available.
Tesoro
West Coast Investors, headed by Glenn Straub, owner of the Palm Beach Polo Club, paid less than $11 million for the Tesoro assets, including 353 building lots, one golf course, a magnificent clubhouse, some commercially zoned land, and a lease on a second course. I visited Tesoro yesterday. New construction was absent because builders are not able to compete with prices of existing distressed properties, but sales are definitely picking up. Both golf courses and the 120,000 square foot clubhouse are open. The developer is making a statement of his commitment by subsidizing the club’s operation costs. Common areas are meticulously kept.Straub also has regained the second golf course. Prior to the Credit Suisse loan, Ginn-LA had transferred the Palmer course to Bobby Ginn, who then took out a mortgage from Textron, then leased the course back to the club. A third party picked up the mortgage from Textron, but Straub settled with the third party and now owns the Palmer course as well. The golf course transfer to Bobby Ginn is similar to one at Bella Collina, where the golf course, clubhouse, and land designated for the un-built sports center and equestrian facility were transferred to Bobby. He subsequently took out a $10 million mortgage on those assets from Textron.
One Tesoro property owner told me he was very concerned last year when the bankruptcy was announced, but now thinks that the community is much better off than before.
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Tesoro’s Beach Club
Dear Toby: when you were in PSL were there any updates on Tesoro’s Beach Club?
Also, what year did ITT Community Development Corporation commence what is now known as Grand Haven?
Thank you.
Wishing Tesoro and Quail West much Happiness for 2010 – we hope this news is the harbinger of more Joy for you.
George Edward Chuddy
Tesoro Preserve
Dear Toby,
Can you provide any insight as to the status of the Tesoro Preserve? Who now owns this and is it being maintained by anyone?
Thank you,
concerned Tesoro Preserve owner:
C. Lynch
great report toby
another great report toby…the folks here at reunion have been scared to stop paying their dues due to the threats by ginn in the past about their real estate values…now that there are no values they have stated they are afraid the place will go to weeds and a golf course that looks like hell…i have preaching to them its only a positive to stop paying the crooks and liars and force them out of here…the new liars from noble and reynolds are just the new puppets from lupert/adler…they have reduced this place to the bare bones service wise and still the folks here are afraid to stop paying these stupid dues,,,,maybe your post will open their eyes thanks
Reply to George
The Beach Club is dead. The property on which it was to be built was not part of the Credit Suisse lien. It was not picked up by the new developer as part of the bankruptcy sale.
As to Grand Haven, I know it was in the late 90’s. Lowe was the original developer. Ironically, Bobby Ginn worked with Lowe at that time and was a project manager at Grand Haven.
I’ll post in a few days more info on the Grand Haven connection.
Reply to Christine
Tesoro Preserve was not part of the Credit Suisse loan default nor was it included in the bankruptcy sale. Ginn-LA owns any unsold property and is still the declarant, but owners are in an awkward position because the mandatory club membership is still in play although the club is now owned by Glenn Straub’s company.