Bon Secour Village bought by Point Clear investors
Published: Sunday, April 24, 2011, 7:30 AM
GULF SHORES, Ala. -- Local investors paid $4.5 million for the bank-owned Bon Secour Village on Baldwin County 4 on the Intracoastal Waterway in Gulf Shores. Charter Landing Inc. of Point Clear, headed by Ken Montgomery and his wife, Deena, purchased 842 acres on the north side of County 4 and 66 acres on the south side. The southern property includes 4,000 front feet on the Intracoastal, Montgomery said. Charter also has a contract to purchase the 60-slip marina.
"It's beautiful property, and we've got some interesting and exciting things that want to come in there," Montgomery said. There are five occupied homes and a 3,500-square-foot sales office in the development that went bust more than two years ago. It was designed as a traditional neighborhood including condominiums, upscale neighborhoods, retail shops and marinas.
Wachovia won $20.4 million judgment
In February 2009, Wachovia Bank won a $20.4 million judgment against the project's developers and later took ownership of an estimated 900 acres after a courthouse auction failed to solicit a single bid. Wachovia then entered a $10 million credit bid for the property, according to attorneys. Other primary owners were First National Bank of Florida and the Federal Deposit Insurance Corp. according to NAI Brannen Goddard in Atlanta, which represented the lenders.
Milstead & Associates in Gulf Shores had listed 32 of the residential lots at an average price of $52,188. The lots had once sold in the $150s to $300s, according to David Milstead.
Charter Landing plans to sell single-family residential lots in a variety of sizes up to 10-acre parcels, depending on what buyers want, according to Montgomery.
"We know it's going to be a lot of waterfront lots," he said. "We will put a price on the lots that the market today will buy. We will not wait around and hold on to it."
Pricing will be released in about two weeks, when Charter has completed new site plans, he said.
Charter has bought and re-sold several bank-owned projects at the Gulf.
In February, the company paid $1.35 million for 52.7 acres at Bartram Walk, formerly called Waterdance, on Baldwin County 4 in Gulf Shores. The company divided the property into five parcels and sold it for a total of $1.86 million, according to court records.
Last October, Charter bought the bank note on 89 condominium units at Levin's Bend at The Wharf on the Intracoastal Waterway in Orange Beach. The units were quickly sold at net prices starting at $100 per square foot.
Montgomery said Charter will not use the original Bon Secour Village master plan, and has sought input from city officials about the best use of the land.
The marina has drawn interest from out-of-town investors who would buy it and develop restaurants around it, he said.
"We've also had some chain restaurants already interested in the site," he said. "It will be pretty cool."
The project has been approved for 271 dry boat slips, a storage building, 11 fuel docks and a marina store, as well as 56 additional boat slips along the Intracoastal, according to Montgomery.
Realtors at the Gulf say the lots will sell if the price is right.
"It's all about affordability, timing and price," said Randy McKinney of Realty Executives in Gulf Shores. "If they put it together where the lots are affordable, they will be able to sell them. As time goes on, the values will increase. The location is outstanding."
The original plan was one of the more beautiful in south Baldwin County, said Patrick Daily of REMAX of Orange Beach.
"I'd like to see them downsize the building sizes and use the New Orleans French Quarter style that was in the original plans," he said.
A good amenities package and small lots that are reasonably priced will most likely sell, said Pete Vakakes of REMAX of Gulf Shores. "A lot of people would have to land-bank the property until they retire and are ready to build."
