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Ginn Clubs and Resorts Misses P&I Payments on $675 Million Credit Facility

By Toby Tobin

Services for Real Estate Pros with Real estate commentator; GoToby.com, Take Action Propertiesi

July 02, 2008 09:43 AM

Signaling cash flow woes, Ginn Clubs and Resorts missed principal and interest payments on its first- and second-lien debt according to a LCD report. Lenders have agreed to not exercise remedies for 30 days but have not waived the default. The 30-day waiver on principal and interest payments was granted when Lubert-Adler agreed to kick in $5 million in cash for operations. The agreement affects only four Ginn properties.

Both the report and comments from Ginn President, Robert Gidel can be seen at the following link: Florida Real Estate Developer, Ginn Clubs and Resorts, Misses Principal and Interest Payment

Toby Tobin is a real estate commentator and Publisher of GoToby.com, the popular real estate news website for the City of Palm Coast, Flagler County and Northeast Florida. He is a licensed Florida Realtor® associated with Adams Cameron & Co.

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Jin Park

Century 21 Professional Group - Orlando, FL

I specialize in Reunion. I sold three lots and two condos in 2007 and sold one lot so far this year. Last year the sellers of the three lots sold at or near their original purchase prices. This year they will be lucky if they can get a half of those prices. In November 2007, I sold a Heritage Crossing condo, which is furnished and has a golf membership, at $450,000. Currently two similar Heritage Crossing condos are listed at $345,000 but not selling. Their rental income cannot justify even this low price.

Jul 14, 2008 08:20 AM

Toby Tobin

Real estate commentator; GoToby.com, Take Action Propertiesi - Palm Coast, FL

If were planning to build in Quail West, I would wait to see how the credit problem is resolved. This should become apparent soon as the abatement is only for 30 days. If I already owned there, I would just hold on tight and try to survive the ride. This is a terrible time to sell, so avoid doing that unless you have no other choice. The Ginn communitities have enough going for them that they should survive, even if they end up under different ownership in the future. Unfortunately, property values will not return for a long time (never, if you consider your cummulative carrying costs)

Jul 14, 2008 11:27 PM

I know that there are some issues with Ginn using control of amenities and security to squeeze outside property management companies from the rental business. If you have any information supporting this, please contact me. Toby

Jul 14, 2008 11:30 PM

Ginn Clubs and Resorts Misses P&I Payments on $675 Million Credit Facility

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