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| SAVANNAH LENDING |
HOME |
| CRESCENT COVE I (updated 8/3/04) |
UPDATE |
| Partnership Formed: |
Savannah Lending Group, L.P. - Filed 6/18/01 |
| Loan Status: |
Foreclosed; property sold |
| Borrower / Developer: |
Crescent Cove, L.P.-Hollis Dealy |
| Develop / Project Stage: |
When the bankruptcy was filed, Robert Price and a couple of investors walked the property and confirmed the following: (1) there are 53 waterfront lots (2) 40 off-lake lots (3) 3 harbors installed with bulk-heading (4) 30 acres of undeveloped land. Price met with a couple of realtors and was told the lots on the water were worth between $75,000-$100,000 per lot. Two lots sold before October 2001 for a $125,000.00 a piece. The realtors estimated the value of the 40 off-lake lots to be $25,000-$35,000 per lot. The 30 acres was estimated to be worth $15,000 per acre. It is estimated that development to completion will cost approximately $900,000.00. Crescent Cove is still far from complete. The property requires substantial completion in comparison to properties nearby. Crescent Cove will suffer disadvantage unless lot prices are adjusted downward at least initially. The property is not ready for builders, and it has no evidence of marketing efforts on a day when dozens of lookers were out at three nearby projects.The vacant acreage probably has some high-density residential (condo /apartment / townhouse) or light commercial potential due to utilities, traffic count and proximity to Hwy 105. The $30,000-40,000/acre value for the workout assumption is unlikely. It is extremely unlikely that the borrower can fully complete and sell the project out before loan maturity in four months and four days (July 1, 2002). |
| Project Name: |
Crescent Cove I |
| Property Address: |
Unknown |
| Guarantor: |
Hollis Dealy for $3.2 million plus $1.2 million on Crescent Cove II |
| Loan Funding Term: |
60 months |
| Original Loan Amount: |
$3,200,000 15% 6/13/01 |
| Principal Balance: |
$3,200,000.00 |
| Stage Funding Due: |
Unknown |
| Title of Property: |
Crescent Cove, L.P. |
| Lien: |
First |
| Advances by Premiere: |
$32,000.00 |
| Exit Strategy: |
Sale of lots |
| General Partner: |
Washington Advisors GP, LLC |
| Loan Maintenance by: |
Washington Advisors GP, LLC |
| Opinion: |
Mosier & McEnrue, P.C. by Bruce Mosier 5/24/1999 |
| Description of Prop: |
46 acres waterfront lot development on Lake Conroe, Texas
Savannah I and II have been combined from the standpoint of a sale and distribution. The property has been listed with a realtor in the Lake Conroe area and hopefully will sale soon. As things progress, I will keep you posted.
8/3/04 On our last update, he partnership agreed to sell this property to Aaron Wiese. This property had a portion of its utilities installed and without good records, little was known about their condition. For this and the many other unknowns, this property is unbankable. Aaron has put up his own money to complete section 3 and has commitments to sell several of the lots. This is a good start. Getting the unknowns out of the way and getting activity should insure his success and also insure that the partnership will receive its $1,800,000 sa;es price, plus the accrued interest at 6%. This is a very challenging project and unfortunately we anticipate a return of about 38% of your original investment. We believe it will be about one year from now before we start seeing principal returned.
1/15/05 The property has been sold. The payment is on terms, and the partnership is expected to receive approximately 30% of principal.
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Photo of Property, if available:
Notice: The information contained in this summary has been acquired by several sources; there are no warranties expressed or implied as to its accuracy and completeness. All information should be independently verified. Nothing contained on this site should be construed as legal advice. If you have legal issues, you should consult an attorney.
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