Catching Up with Carl: November 2016

It’s been a long drought, but we finally signed a marketing and sales contract at Ocean Lodge on St. Simons Island, just off the Georgia coast. Brunswick is the nearest town. We’ll be selling fractions and time share interests. A big ‘shout out’ goes to Marvin Rappaport, who engineered the ‘deal’ for us. Also to Chris Cannon, our chief marketing guru whose work is now just beginning. And, of course, to our Scott Tracy, who as always keeps Star on the right path.

At Ocean Lodge—a boutique hotel, 15 rooms and rooftop restaurant—we are taking it ‘private,’ or from one owner to many… a transfer of debt from one to many to say it another way.

St Simons Island is adjacent to Sea Island, long the ‘class’ of the barrier islands. Pre-recession they instituted a quarter share program; purpose built, with very large units. They were all reserved, but not closed.

Then, September 2008 came and most dropped out. Just recently Sea Island, itself having gone through a change of ownership for the hotel and unsold lots, re-commissioned the quarter share program. Randy Burgess is the PD and sales manager, and a top-flight professional. The two products [Sea Island quarters and Ocean Lodge 1/12 fractions] are so different that we don’t see much in the way of one-on-one competition.

Our other deals are moving along, but not ready to activate:

•Marina Point at Big Bear, CA—we are negotiating with the owner on a purchase of JV.
•Saratoga Polo, NY—we are in the process of calling for mediation on the way to arbitration, or to file a lawsuit to bring our two of five partners to heel.
•Windham Ski, Poconos, NY—we are moving ahead with the owner on a venture.

 There really is something to be said of the ‘Art of the Deal’ in getting these pre-2008 projects to a point that it makes sense for Star to either buy, venture or market and sell.

Or, to say it another way, if one wants a current deal, ready to go save registration, etc, then if it existed pre-2008 it’s got a lot of ‘hair’ on it. Congratulations are due to the owner for keeping it alive these past nine years [or more]. But that means the debt is turned upside down and the approvals, still valid, may have changed over the years.

So, onward Star goes. For a Western-based company St. Simons is a long way to go. But, a deal is a deal.