What have I learned this month:
1. After a brief trip to Ft. Lauderdale on our two Marathon Keys projects, I am more than ever impressed with the team there led by Marvin Rappaport. Just top flight.
We’ll start selling the Florida Keys Club on December 1, 2014, with the first of the 16 fractional cottages while the golf course is under renovation, the marina put in place and the new hotel and clubhouse completed.
On the Crystal Marathon project, just a mile away, we discussed converting the whole project to condos, sold whole and fractional versus the hotel and fractions. Either way, this is a terrific site and to be able to sell two projects in close proximity will be a huge advantage for us.
2. I’m heading to Seahorse Beach Club in Texas next week for a long overdue trip, and to close our construction loan. We have our new Pearson Piling system ready to go. To recall, we need to build up 17 feet and go down 23 feet to hit bedrock. The composite fiberglass pilings will set the standard for Gulf-front building.
We are about to bring to market our membership sales program at Seahorse, which will not only allow financing of the 9,000 square foot club, also up 17 feet, but the other amenities like the pool, crabbing pier, game areas, etc.
Even though we are about three or four months behind schedule, we are now really ready to take off. We have a new round of private equity that allows us to move out very smartly.
3. New Orleans continues to be a mystery to me. It is such a prime parcel and area [the French Quarter] that I don’t know why a major developer has not yet bitten. To change the dynamic, we are hiring our own master developer, completing a new, more comprehensive offering package, and focusing on investors only.
4. I, along with many others, received an offering to take out the investors for the Mountain Club at Cashiers in North Carolina via Ragatz Resort Realty. This was an early fractional project that is still in sales. The developer has been very resilient over the past decade, and the fractional product has a good reputation. Star would jump at the opportunity to raise the money, but Greg Traxler, an outstanding project director and sales manager, already has the contract through Resort Equities. So, no play for Star. But, the interesting news is that the Mountain Club is gearing back up for the fractional market.
5. Happy Thanksgiving.
