What's up with Naturewalk

[Truman]

I see that marketing is going on and sales are being reported. I thought things were settled, then I see this.

http://www.ajc.com/business/developer-awarded-75-million-1326625.html#.TyqxfAwlajA.email

Pearson filed suit in 2010, contending the credit union reneged on a commitment that would have allowed him to borrow up to $30 million to buy deeply discounted Florida Gulf Coast properties from financial institutions and owners eager to part with them.In a 131-page order, Superior Court Judge Robert Flournoy noted that Delta Community Credit Union’s breach deprived Pearson of the funds he needed to consummate acquisitions of two valuable properties at historic discounts. This included NatureWalk, a community comprised of 278 single-family lots, of which 220 were developed. The property, less than a mile from the beach and near the community of Seaside, was also zoned for 226 condominiums.Although $100 million had already been invested in NatureWalk, Pearson had negotiated an agreement to buy the note and control in the property for less than $8.1 million. But the credit union blocked the deal, Flournoy said.Flournoy awarded $54.9 million for Pearson’s lost opportunities on NatureWalk; $1.65 million for lost opportunities on Tang-O-Mar, a property with six lots, including three that fronted the beach; and $18.85 million in attorneys fees. The judgment was awarded to Pearson and First Center, a real estate company he controls.​

 

[PalmBeach]

Interesting.

 

[Beach Runner]

Lots of lights on in the welcome center yesterday during the deluge of rain. Something's going on.

 

[Zebraspots]

Can someone explain this? He is suing the bank for not lending him money for a distressed property? Or is he suing them for not allowing a short sale?

 

[Kurt]

Lots of lights on in the welcome center yesterday during the deluge of rain. Something's going on.

The sales center is now the office of Beach Properties of Florida which is also marketing the property.

 

[PJJ]

Can someone explain this? He is suing the bank for not lending him money for a distressed property? Or is he suing them for not allowing a short sale?

He is suing the bank for failure to fund a loan commitment. The judge ruled that Naturewalk's worth $63 million, or nearly $300k per finished lot. Pearson must have had a deal cut with BancAtlantic and the bondholders if the number was $8.1. I'm guessing a lot changes on appeal, and it probably helped that the former governor of GA was involved (and apparently bills at about $50k per hour).

 

[Jim Tucker]

Does the realtor representing the property not have any agents who use the internet? Hard to believe they wouldn't respoind.

 

[jeffreyb_30319]

Sounds pretty straight forward to me. Pearson had a loan commitment to buy the property, came time to close, bank got cold feet, Pearson didn't have that much in the checking account and had to bail. Kolter came in and bought the place out when Pearson couldn't close, Pearson sued the bank for the money he would have made. The reason for all the activity IMO is the suits trying to figure out how the heck they are going to sell 250 houses for $400K with no beach access to speak of. That issue would tend to get a lot of cars in the parking lot. I'm thinking that Kolter would trade Pearson the property right now for the $54MM judgement in about 1 millisecond.

 

[Abby Prentiss]

Sounds pretty straight forward to me. Pearson had a loan commitment to buy the property, came time to close, bank got cold feet, Pearson didn't have that much in the checking account and had to bail. Kolter came in and bought the place out when Pearson couldn't close, Pearson sued the bank for the money he would have made. The reason for all the activity IMO is the suits trying to figure out how the heck they are going to sell 250 houses for $400K with no beach access to speak of. That issue would tend to get a lot of cars in the parking lot. I'm thinking that Kolter would trade Pearson the property right now for the $54MM judgement in about 1 millisecond.

What does Kolter have to do with the lawsuit?

 

[Debra]

A friend of mine checked out Naturewalk and both of our familys were interested until she told me what the association fees were. You might as well live in Watercolor.