In the September 2008 Market update I reported the outstanding developer inventory according to Bay County Records.  I thought I would take another snapshot of the market.  Many things have changed.  Some of the inventory has changed hands.  I am now simply going to refer to the units as "Remaining Units".  A number of the condominiums do not have the ability to sell the remaining inventory freely.  Some are tied up in litigation.  Others are held by institutions or entities that are choosing to hold the inventory.

Most of these condominiums have detailed stories behind the sales and pricing.  I am not going to get into any specifics here.  Aqua, Palazzo, Ocean Reef, Grand Panama, Tropic Winds, and Origin at Seahaven have been selling off inventory.  Aqua and Grand Panama just recently offered new pricing. 

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On Friday, September 11, 2009, Corus Bank was closed by the Office of the Comptroller or the Currency. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. Corus bank took possession of Laketown Wharf in September 2008.

The FDIC provided a press release on September 11, 2009. You can read the full release by clicking here. 

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 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."

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 Laketown Wharf in Panama City Beach Florida filed for chapter 11 bankruptcy today, September 29, 2008.  This is only weeks after the developer signed over the remaining unsold units to Corus Bank on September 12, 2008 with less than 10% of the units closed.  Corus Bank is the first mortgage holder on Laketown Wharf.

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