Nationally, nearly half of 2006 buyers are upside down

[Matt J]

I remember seeing an original pricing sheet for the Retreat when it was still a JOE development. I can guarantee that you will never see prices like that again in the Retreat. I believe gulf front lots were going for around $400,000.

 

[AAbsolute]

Today the CNBC Market Bozo (aka Cramer) had this to say about JOE:

St. Joe [JOE 37.23 -0.04 (-0.11%) ]: The largest individual private landowner in Florida is heavily exposed to what Cramer said would be one of the last real estate markets to recover. For that reason, he said this stock probably won?t be worth buying for three to five years.

That statement from Cramer is like a lazer fixed on the root point of my comment. In order to post future quarterly revenue JOE must sell land. In order to sell land they must successfully compete with all the product both on the market and not yet to market. There are currently far more sellers than buyers and somehow JOE must constantly pick up revenue within that dynamic. In a price driven market JOE must undercut their own customers and every competing developer for miles around.

JOE seems to finally be worth more as a privately held firm than a public company.

 

[AAbsolute]

Don't blame JOE? Caveat Emptor? Is it not a lie to withhold historical fact? What answers were given when lot buyers asked "Will JOE ever become our competitor, the root of a severe devaluation of our land?

:angry:

Hills at the Beach can answer that question. I can only make assumptions.

 

[Little Fish]

Hillsatthebeach:

Thanks for your comment. If Joe is including 2 years dues and beach club memberships along with the new build-outs, I can see why it may be difficult for existing owners to sell. That said, don't the current lot owners have the ability to purchase beach club memberships? If so, that could help their case.

Little Fish

 

[Miss Critter]

Hillsatthebeach:

Thanks for your comment. If Joe is including 2 years dues and beach club memberships along with the new build-outs, I can see why it may be difficult for existing owners to sell. That said, don't the current lot owners have the ability to purchase beach club memberships? If so, that could help their case.

Little Fish

Not sure sinking even more money in a declining investment is looking good to them at this point. Aren't those memberships pretty expensive?

 

[AAbsolute]

Hillsatthebeach:

Thanks for your comment. If Joe is including 2 years dues and beach club memberships along with the new build-outs, I can see why it may be difficult for existing owners to sell. That said, don't the current lot owners have the ability to purchase beach club memberships? If so, that could help their case.

Little Fish

JOE gave all Watersound existing lot or homeowners an opportunity to buy Beach Club memberships and has since closed the Beach Club to existing lot and homeowners. The only properties that JOE is giving the Beach Club entitlement to is their own inventory of new lots and homes.

Again, this is a part of JOE's competitive advantage over their existing customers.

 

[AAbsolute]

Not sure sinking even more money in a declining investment is looking good to them at this point. Aren't those memberships pretty expensive?

Full Memberships are listed at $20,000.00, however JOE is offering a special of $5,000.00 to developer owned lots or homes and other incentives. This seems to be a very good deal.

 

[hillsatthebeach]

WaterSound Beach

Currently the only way a new buyer in WaterSound can purchase a beach club membership is to buy a property that currently has a membership tied to that property or to purchase from St. Joe in the WaterSound communities. Like I said I understand why Joe has set the club up this way but I also see how it is hurting sellers and sales in general in WaterSound and I wish there could be a more positive solution.

 

[AAbsolute]

Currently the only way a new buyer in WaterSound can purchase a beach club membership is to buy a property that currently has a membership tied to that property or to purchase from St. Joe in the WaterSound communities. Like I said I understand why Joe has set the club up this way but I also see how it is hurting sellers and sales in general in WaterSound and I wish there could be a more positive solution.

JOE gave us fair warning and a limited time offer to purchase Beach Club Memberships. I don't understand existing owners complaining now about wanting to join. It seems the most educated and fortunate people should live with a little more gratitude than to constantly want to change the rules.

You watch, in the future when the Watersound Beach Club becomes overcrowded to the point of not being beneficial Members will complain about that too. You've been there as much as I have. Don't you think with the 1,500 possible new members that it will be overcrowded? This season is just the 2nd season and we could not always find a spot to set up.

I really think that in time the Dunesider will be more exclusive and private than our Members only Beach Club.

 

[Miss Critter]

Please pardon my ignorance, but precisely what is included in Beach Club membership? Doesn't the desirability of the property decline considerably without it? And why build a beachside development with a club that can only accommodate a small portion of owners?