Thursday, August 28, 2008

Economic Contraction

A single lot in Tesoro Preserve, a Ginn Company luxury development in Port St. Lucie, Florida, which was originally purchased for $245,150, sold last night at an absolute auction for a whopping $53,900, which includes the buyer's premium. (HT: Craig) From
Tesoro is often referred to as Port St. Lucie's most upscale community. It boasts an Arnold Palmer Signature golf course and a luxurious 100,000 square foot plus clubhouse. As in other Ginn communities, buyers bought at the top of the market. Property values have declined and many owners are upside down with their lenders.

The Ginn Company has its own financial problems. Tesoro, along with three other Ginn developments (Quail West in Naples, Ginn sur Mer in the Bahamas, and Laurelmor near Boone, NC.) are subject to a Credit Suisse first and second lien debt, has been in default since July 1, 2008. The total debt is $675 million. Ginn reportedly still owns about 600 home sites in Tesoro.

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