Update for Sobu Flats

Paces Green Homeowners,
The following is the post that I have added to the Sobu Flats Blog as of yesterday. ...........

Dear Homeowners,
We would like to ensure all homeowners that the SOBU assemblage team is working hard to fulfill our goal to close every unit by November 3, 2009. We are dedicating 110% of our energy to obtaining financing on the SOBU parcel and development loan. When we began the assemblage, financing for projects of this magnitude was abundant, and many financing avenues were available. Due to the global financial mortgage crisis, money sources have all but disappeared, and banks have stopped lending on most land and new-development projects. Private equity, which once was readily available at the beginning of this assemblage, has disappeared due to investors refocusing their efforts to non real estate ventures. The single family residential market has taken a huge hit, home prices have decreased and the condo market has been negatively impacted even worse. The stock market has taken huge swings up and down, mostly down, while banks continue to fail. The presidential election has come and gone, and the government stimulus package has been passed and placed into action. When we set out to assemble SOBU, we knew it would be no easy task, but did not predict the magnitude of the challenges that our economy would face, which leads us to this communication. Communication has been hard for us to disseminate to the masses due to the tumultuous market swings and bank closings—we could hardly keep up with the information ourselves. Every time we found a solid financier, they disappeared just as quickly as they appeared. In the past few weeks, we have progressed from having all financing pulled from the buyer, Cartel, to having several lenders and funds showing extreme interest in investing in the deal. Due to the stock market stabilization and residential real estate market nearing bottom, in addition to the new President in office, government stimulus plan in action and banks showing earnings, lenders are being less restrictive with loaning money. The buyer has tweaked his development plans to build a product that the banks would be more eager to fund: apartments, parking garages, boutique hotels, spa, theater, retail space, and office condos (plans are able to be viewed at our office by appointment). With all of the obstacles we have faced in the past 6 months behind us, we feel it is safe to say that we are now on a downhill battle, and the most challenging feats have been won. Financing is not completely secured, but we are close to having it back in place. Once more, we want to let all the homeowners know that we are putting 110% time, energy and effort into keeping this deal alive, and are working hard to ensure the closure of all 132 units, as planned. We will keep you abreast of any important information, via the blog, that we feel is worthy of your time. Please feel free to call Josh on his cell @ 404-547-3622 with any questions.

............I know that this does not answer all of the homeowners questions at this time, but I don't have the answers myself at this time. Progress is being made, and we hope to be able to pass on positive information in the near future. Thank you to all that have offered your help, and to all that have helped in past few months!!!

Josh