| Description of Prop: |
Marina / Lake Condominiums; 93.45 acres remaining from a 128.61 acre tract less any other lots released by the lender plus lot 49A, Marshall's Harbor, a subdivision in Travis County, Texas.
The partnership signed a modified agreement that would not require the partnership to fund the remaining balance of the loan; however, the agreement allows for no interest payments due until the borrower obtains a new loan. The loan matures on 12/31/03.
11/12 The partnership has negotiated an agreement for BRISA Development and the partnership to go forward with construction on a joint venture. The investors have been asked to review the following (i) offer by BRISA, and (ii) an opinion letter, and then vote on the measure.
BRISA's Offer (pdf file)
Opinion Letter (pdf file)
NOTE, you must have Adobe Acrobat Reader software to view pdf documents. It is a free download.
12/1 The partnership has voted in favor of the BRISA deal. We will be negotiating a joint venture contract to close the deal in the next 30 days.
1/15/05 About a year ago, there was consideration of a residential construction project, but it did not materialize. This was mainly because the borrower/owner of the property (property which is the collateral of our loan) was uncooperative, and then later filed personal bankruptcy. Several other L&W loans were involved with the same borrower, and the land adjacent to this property was foreclosed upon by another lender (unrelated to L&W).
The partnership is not affected by the borrower's personal bankruptcy, except perhaps for the guarantee which he has provided. We can foreclose on the property at any time to receive title, and then can list the property for sale.
We believe that a foreclosure at this time would be unproductive. Since the adjacent land has been foreclosed, and this property is necessary for us to go through for access, until a new developer takes over the adjacent property, we think that it may be difficult to sell the land.
We do not know if it will be a month or a year before we see a new developer on the adjacent project. Until that time, we believe that we must hold on the foreclosure and subsequent sale. When access is established to the property, we believe the value of the property will be between $500,000 - $900,000. The principal loan amount is $2.075MM.
12/31/05 The property has been sold to BRISA, which is principally owned by Brian Atlas. The partnership has financed the sale, and there is a balloon payment, including interest, due at the end of two years. This note is personally guaranteed by Brian Atlas. BRISA is planning to developed a luxury townhome complex on the property.
8/9/08 The property is for sale by BRISA. Proceeds from the sale, when sold, will pay off the loan amount.
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