I am an immigrant, came to the country too late to climb the corporate ladder, and this part of American life is unknown to me. Any experience I have with corporations is as a customer.
I recently posted about Marina Grande on the Halifax condominium development in Daytona Beach area. The original developer - one of the largest Florida luxury condo builders - is returning the projects to Lenders. 5 projects have been returned so far in the South Florida, and Marina Grande on the Halifax is another one, that has changed hands.
The new owner - The Momentis Property Group got the two constructed and completed 25-story towers.
I called the company and after being bounced several times, a rep finally told me that they would have someone to call me and answer my questions.
Well, nobody called me in the next couple of days, so I called again, this time left a message. No answer.
I am not an enemy. They have only about 70 units closed of 486 units built. I am a broker, who is asking them questions, because people contact me for that information.
People may not know Momentis Property Group. But there are over 4,000 real estate agents and brokers in the area, and if someone wants to sell their units in the tough market like this, wouldn't you expect them to be at least communicating with their potentially major sales force?
Not their 2 salespeople on site, as this is not the market where you build and they come in flocks. Salespeople, who worked for Boca Developers and were there for the last couple of years did not sell much if any units at all, so what kind of corporate culture this is?
Do they still live in fantasy world? Don't they understand that if they dod not talk to people, this may hurt? Because I am not going to tell potential buyers to go and buy until I feel comfortable, that I understand the issues, and my clients will not hate me for a bad advise. I am one of thousands, please, listen to me, please talk to me. You need it as well.
So, where we are on this gorgeous property?
- Initial developer - one time strongest condo builders in South Florida- is gone.
- Only about 70 units (information given by Momentis reps) closed.
- There was (and maybe still is - the attorney is not answering either) a law suit initiated by the people who reserved the units at pre-construction prices. Will they close, or walk away?
- With about 70 closed units it does not mean that all of them are paying the Association fee.
- Even if all 70 are paying the Association Fee, it may not be enough to cover the expenses.
- When there is not enough money to cover the expenses, the first thing not paid is insurance, which renders units unsellable, as Lenders want to see the Master policy before they give a penny.
- When there is not enough money, you companies start cutting corners on preventive maintenance, work with fewer people and do not have enough eyes and hands.
What would be my verdict? Isn't it a no brainer? Not so fast.
- Momentis Property Group might have reserves to survive the transition period, and they might be sufficient to adequately maintain the property.
- The lawsuit may be over, and people may start closing on their units, thus the coffers for maintenance would start filling, and the property go stable.
- There are a lot of other things that they might be doing that would not only stabilize the proerpty, but enhance it and make it more attractive.
- They night come up with a different price structure for the unsold units.
- They might come up with incentives to agnets and brokers to sell the remaining units faster
But we do not know that.
The funny thing is that if Momentis Property Group has spent millions and millions on taking over these two towers, they, obviously, have a clear plan, and it might be the greatest plan. But until people like me know it, and trust the information from the successor developer, or property owner (and we do not know how it is structured) each unanswered question hurts. Lack of positive information is perceived as a sign of hiding negative information.
All they need is to talk to us, and to the prospects. Corporate sloppiness may be construed as the sign of trouble with the property.
So, for now this IS a no brainer. Sorry, guys. Terrific property, great potential, freaggin corporate culture... or lack thereoff.
Meanwhile, if you are looking for condos in the area, whether on the Intracoatal (Halifax River) or on the Atlantic Ocean, call me 386-255-5355 or my mobil at 386-405-4408.
Jon Zolsky, you Daytona Beach, Florida connection
www.AtlanticCondos.com
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