One of the Corus Bank investors sent me an email with the Quarter 3 report of Corus Bank that has a paragraph that briefly speaks into their Laketown Wharf holding. The paragraph gives some indication as to their plans of the building in the near future.
The remaining component of nonperforming assets is OREO, which consists of three properties as of September 30, 2008. The largest is a condominium project located in Panama City, Florida, which Corus took possession of in September 2008. At the time Corus took possession, the outstanding loan balance of $96.5 million was transferred to OREO on the balance sheet. Prior to the transfer, Corus recorded a charge-off of $30.2 million. While certificates of occupancy have been received for the entire project and over 60 units have been sold, management estimates that an additional $10 million will be necessary to complete all work on the building. The Bank also intends to pay an additional $5 million to furnish approximately half of the unsold units and make them available for rent. The ultimate goal, however, is to sell all of the individual units.
I found this extremely interesting, and actually quite encouraging. Not that a huge bank would ever let a holding this large “go to the birds”, I’ve seen stranger. It is very important to the image of Panama City Beach that Laketown Wharf maintains a good image and that something does indeed happen with this property, whether the remaining condos are sold for whatever they can be sold for, or rented.
Talking to a friend today, I was told that Laketown Wharf has no formal agreement with anyone for beach access. I hope that Corus can negotiate a permanent solution for the guest, tenants and owners to have access to the beach.
The rest of the report provides interesting insight into how a large bank is handling the current economic condition of our great country.
The report seems to indicate the banks willingness to finish the job and do what it takes to move forward. A property they took possession of in California, they will be funding, finishing, marketing, and selling.