WCI not having a Good Time in Hammock Dunes

Announcing reduced prices on unsold Casa Bella units – an auction is rumored.

November 14, 2007 – Palm Coast, FL – It was only a matter of time before the effects of the real estate downturn became apparent in Hammock Dunes, Palm Coast and Flagler County’s most established high end oceanside private community. While playing golf there three weeks ago, I found a Pinnacle and two Top Flite golf balls in the woods where one should expect to find only Titleist Pro V1s or Callaway HX Tour balls. I didn’t realize the significance of this discovery until I heard from a Hammock Dunes resident yesterday. They had just heard that WCI, the condominium developer in Hammock Dunes, was going to auction the remaining unsold Casa Bella units. So I made some phone calls to see what was up. Here is what I was told:

• While the auction rumor came from a solid source, the local WCI sales folks say that an auction is not in the works, only a price reduction.
• WCI has experienced essentially a 100% turnover of local management.
• Le Jardin, WCI’s latest tower, received its CO but only about half of the dozen or so units under contract have closed. The remaining buyers are attempting to get out of their contracts.
• WCI may be selling the two remaining tower pads. It was suggested that the buyer may be Terry Pendleton and HD Holdings LLC.

Here are some real numbers (not rumors) as reported to the Flagler County Association of Realtors:

• Currently, there are 28 Casa Bella units listed for sale (MLS). Seventeen are owned by WCI.
• Three Casa Bella units sold in 2007 for prices ranging from $650,000 to $749,000.
• 17 of the 28 listed units carry an asking price above $749,000. The highest is $1,250,000.