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Development
Bargain Real Estate Bids for Naught
 The Legacy site in Panama City Beach drew a $30-million bid. The site had been appraised at $100 million |
When longtime Panama City Beach developer Charles Faircloth died in October at age 79, his estate included a collection of homes, condos and development sites, including four that encompass nearly a third of a mile of beachfront.
In March, an auction of 150 prime parcels attracted 800-plus people from 20 states and five countries. But bid contracts for all the parcels — subject to approval by bank lenders and probate court — are estimated at just over $60 million. Pre-auction estimates pegged the value at $250 million.
“The property he had was the crown jewel of the coast,’’ says businessman Jack Bishop, who dubbed the auction bids “too low to be realistic.’’
In November 2004, at the market’s peak, Bishop and a partner sold the Breakers restaurant site and its 204 feet of beachfront to Faircloth for $12 million. But Faircloth’s planned 22-story condominium project never went through. At auction, the top bid for that property was just over $6 million. Bishop says he doubted many auction contracts would be approved.
Bill Grimsley, Faircloth’s partner on a site that was to house a condominium project called Legacy, which was the auction’s top-dollar draw, says the low bids represented the market’s return to pre-speculative pricing.
“The story is there were over 400 people who were bidding in a market everybody said was depressed.’’ The Legacy site, with 860 feet of beachfront and an approved development order for a 30-story condo, was appraised earlier at $100 million. It drew a $30-million bid.
By early last month, it appeared bids for most smaller units, such as condominiums, were approved, while sales of bigger parcels, including Legacy, wouldn’t go through. In that case, it’s back to market, says Grimsley.
