Posted by: chris
on Nov 19, 2008
Real estate condominium re-sales in Panama City Beach were flat in October when compared to October of 2007. Forty-Eight condos sold in 2008, compared to the forty-nine (non preconstruction) sales the prior year. Twenty-one additional condos sold in 2007 that were sold as a result of preconstruction closings at Marina Landing. Ocean Reef put roughly 50 condos under contract due to the auction. We can expect those contracts to close thru the month of November. It is notable that I do not count auction sales or preconstruction sales in my monthly sales comparisons. I do this to show a normal absorption rate in the market.
Origin at Seahaven announced its absolute auction to be held in December. Tidewater and Shores of Panama announced new developer pricing for unsold inventory. Foreclosures and short sales are starting to have a significant impact on the market. We are seeing hefty price cuts on many resale condominiums because of this. Despite these price cuts, we have yet to see an increase in the absorption rate over last year. Additionally, a number of the 2005 and 2006 buyers are having financial difficulties. Foreclosures and short sales are starting to control the pricing of many condominiums and floor plans in this market.
Posted by: chris
on Nov 10, 2008
Shores of Panama is the next condominium in Panama City Beach to offer reduced prices from the original preconstruction offerings. You can see a complete list of the Shores of Panama Phase II price list here. You will find the pricing is roughly $253 per square foot. The current pricing includes 158 units. Shores of Panama has completed Phase I, Phase II, and the amenities. The resort amenities include 2 full service spas, 2 Tiki bars, a 14,000 square foot lagoon style pool, an additional indoor pool, gym, and reception desk. Click here for a full list of floor plans, amenities, pictures and more.
New Shores of Panama Phase II pricing
Posted by: chris
on Nov 10, 2008
The developer of
Origin at Seahaven Condominium has scheduled an absolute auction for 29 condominiums on December 13, 2008 at 1:00 PM CST. The developer will provide over sixty condos to choose from. There will be no minimums and No Reserves. The terms will be 10% down and closings will be within 30 days of the auction. There will be a 10% buyer's premium paid to the auction company at closing (if you bid 300k, you will owe 330k at closing). The auction will take place on site at
Origin at Seahaven. Pre-sale inspections dates will be posted at a later date. This condo is part of the future preconstruction development known as the
Towne of Seahaven in Panama City Beach Florida. Ocean Reef contains studio, one, two, three and four bedroom floor plans. To see pictures, floor plans, and current listings you can click here. The auction is being performed by the same group that did the
Ocean Reef, Marina Landing and
Palazzo auction. The style of the auction is likely to be the same. If you have questions or would like to register, please feel free to contact us.
Posted by: chris
on Nov 03, 2008
On October 29, 2008 Laketown Wharf was referred to in Corus Bank's third quarter results. They acknowledged taking possession of Laketown Wharf in September 2008. The current balance on the project is a reported $96.5 million. They have sold 61 condominiums to date. Corus also made reference to an additional $10 million that will be necessary to finish the project. There is also mention of an additional $5 million budgeted to furnish half of the unsold units to make them available for rent. This gives us a clear indication of the banks intent. We should see a completed and fully operation Laketown Wharf in the not so distant future.
Laketown Wharf is an interesting project to run the numbers on. The first hurtle will be to navigate the bankruptcy and existing lawsuits. It could be a while before we see the outcome of all of the existing contract holders and their 20% deposits on original preconstruction pricing. It is also worth mentioning that Corus Bank has already taken one charge-off of $30.2 million on this project. With over 700 condominium units owned by the bank in a challenging real estate market, the decisions made over the next few months could have long lasting ramifications. The manner in which the marketing and sales are conducted should have a significant impact on the projects balance sheet when all is said and done.
Here is the paragraph of Corus Bank's third quarter results that referred to Laketown Wharf:
"Other Real Estate Owned ("OREO")
The remaining component of nonperforming assets is OREO, which consists of three properties as of September 30, 2008. The largest is a condominium project located in Panama City, Florida, which Corus possession of in September 2008. At the time Corus took possession, the outstanding loan balance of $96.5 million was transferred to OREO on the balance sheet. Prior to the transfer, Corus recorded a charge-off of $30.2 million. While certificates of occupancy have been received for the entire project and over 60 units been sold, management estimates that an additional $10 million will be necessary to complete all work on building. The Bank also intends to pay an additional $5 million to furnish approximately half of the unsold units and make them available for rent. The ultimate goal, however, is to sell all of the individual units."
