The Daily Soak - November 27

Palm Beach Auctions Require "Meeting In The Middle"

A New York Times writer attended last week's auction of condo units at the Edge condo in West Palm Beach and reports "many of the 37 condos sold during the auction and shortly afterward were bought by individuals who plan to use them as primary residences or vacation properties at prices ranging from $131,000 to $290,000." A nice haircut from the original asking prices in the $400,000-$600,000 range. The auctioneer described the winning formula of compromise: “I think that the developers probably got a little lower prices than they wanted to get and the buyers probably paid a little more than they wanted to pay." Not all recent Palm Beach auctions have been as successful. The prior week's auction of units at the struggling 166-unit Landmark development failed to produce a single sale. According to that auctioneer, "The marketplace basically rejected the minimum bid.”


Destin Condo-Hotel Secures $27 Million

A high-profile waterfront Destin condo-hotel just secured a $27 million line of credit from a New York-based REIT that has apparently financed the project in the past. According to GlobeSt.com, "The 280-unit condo-hotel, located at 10 Harbor Blvd., was completed late last year. The project also includes 48,647 square feet of retail space that was completed this summer. The whole and fractional condo-hotel units are 80% sold and the retail portion is 80% leased by high-end specialty retailers. The space is anchored by New Orleans-based restaurants Commander's Palace and Pat O'Briens. The deal was arranged by Miami-based Cohen Financial. Sales information with floor plans and fractional ownership brochures are available on the developer's website.


The Grinch Local Banker That Stole Christmas My House

The News-Press interviews several community bankers in Lee County who are applauding Charlie Crist's plan to call a moratorium on home foreclosures in Florida. Even though 90% of the foreclosures are investor-owned properties, Riverside Bank chairman Elmer Tabor says, "We don't want to be a Grinch and put a family on the street." Mr. Tabor doesn't clarify his position on putting flippers on the street, but David Hall, president of First Community Bank fills the awkward silence, "We all need to be gentlemen about the whole process. I have no problem with this. If you are an investor, that's a different story." (Yeah, kind of like the difference between the banks that made loans to prime vs. sub-prime borrowers) Finally, Mark Morris, the president of CommerceBank lays it on extra thick, "We certainly have compassion for these folks in their time of need." The question remains...Will Florida lawmakers have similar compassion for bankers who lost millions in bad loans in their time of need?