It may not be the Fourth of July yet but fireworks are flying in Bonita Bay Group’s communities.
Mediterra Naples Fl Real Estate
The developer has started to deliver “term sheets,” which explain what it may take for its golf members to own their clubs.
At least two communities have received buy-out terms from the cash-strapped developer — Mediterra in North Naples and Shadow Wood in Estero. In both cases, Bonita Bay is asking members to put up cash in addition to what they’ve already paid in deposits and dues. They’re also being asked to assume all of the developer’s liabilities, including deposits owed to resigning members.
If members finance their purchase, the price tag for Mediterra’s club would be $8 million. Shadow Wood members would pay $6 million for their club.
“In the event the purchase is paid in cash, without financing from company lenders, a reduced purchase price will be considered,” the term sheets say.
The developer is looking to turn over its golf clubs quickly as it fights to avoid bankruptcy. More than a few members are scoffing at the developer’s offers, saying they’re unreasonable, especially if they have to accept the liabilities involving deposits.
Bonita Bay Group owes its lenders, led by Key Bank, more than $100 million. The clubs are pledged as collateral. Members of Shadow Wood’s Advisory Board expressed doubt that members would accept Bonita Bay Group’s offer in a letter to neighborhood representatives on July 1.
A member survey found they were reluctant to pay any cash and the offer is higher than one the developer made when Shadow Wood members pushed to buy their club a few months ago after services were cut.
Members would prefer to own their own clubs. Bonita Bay has said it will look to sell the clubs to outsiders if it can’t reach a suitable agreement with members. Bonita Bay is looking to sell seven golf clubs in all. Some of its communities did not receive the term sheets they expected on June 30, including its signature development — Bonita Bay — and Verandah in Fort Myers.
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