Catching Up with Carl: December 2016

Here we are at the end of another year.

I am reflecting a lot on the difficulty of getting projects signed that began their life before the recession, so pre-2009. In many cases, these are the ‘ready to go’ projects that we focus on. But, for the developer or owner to have them in their control, all these years means that the financing is convoluted, or they would have long ago lost the project back to the lender or its equivalent. So, lately we spend what I consider an inordinate amount of time working through the ins and outs of either a finance tangle or a developer who has so succeeded in keeping control of the project that he does not know how to let it go. All this assumes that Star offers a market rate deal and the prospect of success in marketing and sales.

That said, what does Star have ‘on the books’ at the end of 2016?

Ocean Lodge, the Golden Isles, GA: one of Star's real stars, in sales, has agreed to kick off our selling program in 2017. Sandy Staudenmayer is the key player for us and for Ocean Lodge. She'll arrive in January. We have our Scott Tracy to thank for getting Sandy in the 'do' mode.

The Seagate building, across the street from Ocean Lodge, includes 24 one-bedroom units, condominiumized and ready to go for sales of whole or fractional units to extend the sales program at Ocean Lodge. It’s in the process of getting financed thanks to Peter Temling and our Marvin Rappaport, who is Star’s VP of finance. We are there December 8th to start the financing process. Wally Hobson is doing the feasibility for Star.

Saratoga Springs Polo is still in legal limbo as we work through the process of leveraging out the two errant partners. We believe, at worst case, we'll end up with either the property [our first choice] or a financial settlement.

Windham Ski, Poconos: Duane Gerenser, Star’s VP of development in the Northeast, is working with the owners to get an agreement that will also allow Star to finance and build out the some 300+ home sites there.

Alas, I am afraid the Big Bear, CA, project, Marina Pointe, is slipping away as the owner does not want to sell all or part of it to our group. See my notes at the beginning of this newsletter about developers who have kept the dream alive for over a decade.

Mahalee, in Markleeville, CA, is a large development in California’s Sierra Nevada, about 30 minutes to South Lake Tahoe, and includes unspoiled country and four-season activities. It was counting on what Star considered unrealistic financing avenues, but is back again and more realistic this time around. We are assisting the owner to correctly package the property for sale or for selling.

So, Merry Christmas and let’s all plan for a grand New Year.