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

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

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.

Comments (7)

Anonymous
Anonymous

What does this actually mean to those who have or are about to build in Quail West?

Jul 14, 2008 04:28 AM
#1
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
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

Toby,

Talk about HIGH FLYERS!

Ginn was quite a show when it came to marketing....

Jul 14, 2008 09:56 PM
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
Toby Tobin
Real estate commentator; GoToby.com, Take Action Propertiesi - Palm Coast, FL

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
Anonymous
nesbitt

IF WAS BOUGHT TO MY ATTENTION THAT BOBBY GINN HAVE CLEAR DOWN 300ACRES OF MY FAMIY LAND THAT IS IN WEST END

Aug 08, 2008 06:14 PM
#6
Anonymous
Anonymous

IT WAS BROUGHT TO MY ATTENTION THAT BOBBY GIN HAVE CLEAR DOWN 300ACRES OF MY FAMILY LAND IN WEST END GRAND BAHAMA. BUT NOT TO WORRY WE ARE WAITING ON THEM TO BUILD ON IT. ITS  LAND THAT IS PAST DOWN FROM ONE FAMILY MEMBER TO THE OTHER. MY FAMILY OWN OVER ONE THOUSAND AND 30 ACRES AND WE KNOW WHERE ALL THE LAND IS LOCATED  BECAUSE WE HAVE THE DEEDS TO ALL

Aug 08, 2008 06:19 PM
#7