Will the New Developer Reduce Amenities for Shores of Panama Condos?
As Vision Bank moved to have the Shores of Panama assets sold to a new company, home owners and purchasers should be aware that, in the sale motion, the bank stated that the sale would be free and clear of encumbrances including contracts related to beach services, spa massage, kids activities, food and beverages, landscaping, pool maintenance, the Club Agreement, the telephone system and service agreement, etc.
Question: Does this mean that the amenities will be reduced for the Shores of Panama condos and that might affect the market values of the condos? Or perhaps residents will pay less in fees and assessments? Well, the new purchaser for a section 363 sale (ie, sale that’s free and clear of encumbrances) gets to choose whether or not to assume the contracts with the existing amenity providers. We’ll just have to wait and see…
It’s true, the developer at Shores of Panama had retained ownership of the pools, restaurant, spa, and beach services, as stated above.
Part of these properties were leased to the unit owners (pools, fitness areas, etc.) for a cost of approx. $60 per month, per unit. If you own a unit at Shores, and rent your unit out, your renters must pay a fee of a least $25/day(depending on the unit) for use of these properties, and it’s not optional.
Of course, the spa, restaurant, etc. are leased to business owners, who offer services to the owners/guests of Shores.
According to the Debtor’s operating report, these properties generated approx. $325,000 last year alone, with only 339 of the units(out of 709), occupied. This property will most likely prove to be quite lucrative!
Of course, Silverton Bank now owns all the remaining property at Shores(370 condos & pools, restaurants, etc.) free and clear of all liens and encumbrances. It was quite the deal for them, and they have immediately put the units, alone, on the market for $225 per sq foot.
Silverton is also in talks with the association at Shores concerning the purchase of the “Club,” property. The association would certainly prefer to own this property, so that they would have control over the outrageous fees they are currently being charged, but to date, their has been no agreement.
I wonder if it’s a price issue?:) The value of the Shores property seems to have gone up, just as soon as Silverton got the creditors out of the way!
Jenn