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WEST BAY BEACH & GOLF CLUB
Estero, FL
Fee managed for preferred equity and mezzanine lender
SITUATION:
The West Bay Beach and Golf Club is located in Estero, Florida, approximately 10 miles north of Naples on Florida’s west coast; the community, as originally planned, called for 1,016 residential units including condominiums and single-family homes. The amenities were constructed in anticipation of a fully built out development and consist of a Pete Dye 18-hole golf course, 8 tennis courts, 2 pools, 2 exercise facilities, a 500-acre wildlife sanctuary, 4 restaurants, a private beach and club, and a private bay club. When RDS assumed control, only 350 residences had been sold resulting in an annual operating deficit of $2.5 million. The construction loan on the condo towers was in default, taxes were in arrears and negotiations on the loan had broken down.
THE PLAN:
RDS addressed homeowners’ concerns and developed a 2-year plan to eliminate the operating deficit. Restarted the sales process with a team hand-picked by RDS. Reinvigorated the marketing outreach to incorporate the local broker community. Restructure the construction loan on the condo towers.
RESULTS:
Upon stepping in, RDS restructured release prices to allow for greater flexibility in the sales process, and as a result has sold 56 condo units and 4 home sites to date. Additionally, RDS reduced the deficit to only $500,000 in its first year. Concerted marketing efforts resulted in record traffic during the 2008-09 season with 2009-10 delivering the same stellar numbers. Successfully negotiated the note without diminishing the value of the asset, and set up a tax accrual for 2010.
