garrison_IHB
New member
TI
Brightwater Huntington Beach reduced 300k?
- Thread starter frebay_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
Well, at least they are at rental parity.
I must have read the PR wrong because I thought it said the company should receive 75% of the excess profits from the future sale, not 25%. But will there even BE "excess profits" in 3 years?
It depends on whether you believe in the Easter Bunny and Santa Claus.
Don't wait! Put the government's money in your pocket for a change, and with the
historic low interest rates
Someone needs a lesson in how taxes work, taught with a blowtorch and a pair of rusty pliers.
Isn't this the place on the swamp in HB? ;-)
From their 10-Q ending in March...
We delivered five homes at an average price of $2.4 million (including three Breakers view homes averaging $3.2 million) during the three months ended March 31, 2009 and two additional homes at an average price of $865,000 in April and May 2009. As of May 11, 2009, seven Brightwater homes (including one home with wetland and ocean views) are in escrow at an average price of $1.2 million, or approximately $525 per square foot, and 13 additional homes are completed or under construction and have been released for sale.
They would have to have closed all seven of the homes that were in escrow since the 15th of May to have closed 14 homes for all of the year. They are either lying (SEC violation) or they are exaggerating the number to include homes in escrow, because as of three weeks ago they only had sold 7 homes in Brightwater all year long.
Looks like I am getting closer to winning that bet. Did you ever buy that home? Do you even still work for Hearthside? Just make sure you pay me before they go BK.
From the link:
"He called sales at Brightwater “pretty solid,” and added, “One of the reasons we need to modify the loan is to provide more money for construction … once the (economic) tide turns we won’t be able to keep buyers away.” "
HAHAHAHAHAHAHAHAHA! Indeed, if you can hold out that long and considering that all you will have left are the big, expensive properties.
Ha! You think those numbers are scary...
As of June 30, 2009, we had $216.3 million of debt (including the model home financing) against $59.4 million of book equity.
From their 10-Q from last year:
Based on current sales price projections, the various Brightwater products are currently expected to generate gross margins of approximately 28% to 40% due to our low carrying value in Brightwater. Gross margins for the larger homes at The Cliffs and The Breakers are currently expected to approximate 35% to 40%, while gross margins at The Trails and The Sands are currently expected to approximate 28% to 35%.
From their current 10-Q:
Based on current sales price and cost projections, the various Brightwater products are currently expected to generate gross margins of approximately 9% to 28% due to our low carrying value in Brightwater. Gross margins for the larger homes at The Cliffs and The Breakers are currently expected to approximate 23% to 28%, while gross margins at The Trails and The Sands are currently expected to approximate 9% to 22%. The decrease in expected margins reflects price reductions required to be competitive under current market conditions, additional incentives to sell standing inventory and greater use of third-party real estate brokers.
In the current 10-Q, they state how difficult it is to sell The Cliffs and The Breakers due the price and lack of financing for borrowers. Mmmm... denial much? Those gross margins will be further reduced as they realize it is the price stupid why The Breakers and The Cliffs aren't selling and they finally reduce the price. At a gross margin of 9% on The Sands and The Trails they are a sinking ship when it comes to net revenue, and that is what is selling best, if you can even call it that.
They are doomed.
graphrix_IHB
New member
I just checked out the SEC filings, and O M G!
They go and pay $10.9mil in debt, keep $1.6mil to probably make payroll, but agree to a lease of $262,500 a month or $15,441 a month per home, give up 75% of the profits of the model homes, and they think this is a good thing?
A reminder...
The Registrant also announced that it delivered seven (7) homes at Brightwater at an average price of approximately $2.1 million during the fourth quarter, including two (2) Cliffs homes and four (4) Breakers homes, which are the larger homes at Brightwater. Including the model homes, the Registrant delivered 40 homes in 2008 at Brightwater and 49 homes project-to-date. The Registrant has generated two (2) new sales orders at Brightwater since the quarter ended September 30, 2008.
42.5% of their sales were the model homes. My gawd... nearly half.
If you really want to have fun, then check out the lease terms. If they F'up on any of their loans, they are considered in default. Check it out, that will hurt them like no other.
And here is the dagger to heart...
The Registrant utilized $10.2 million of the model home sales proceeds to make repayments under its Brightwater credit agreements, thereby reducing the payments that would have been due in 2009. The Registrant also utilized $10.7 million to reduce the balance outstanding under its revolving credit agreement, which amount can be re-borrowed under the terms of the revolver. The Registrant’s current liquidity, including cash on hand and availability under the revolver, is approximately $16.0 million. For accounting purposes, this transaction will be treated as a financing rather than a sale since the Company has a continuing interest in the property through its eligibility for profit participation.
Holy sh*t! Just last quarter they amended their $210mil credit revolver for an additional $100mil, and now they only have $16mil available? OMG! This is horrendous, awful, and down right scary.
At $0.56 a share, having very little credit line left, a vulture fund that will never see the returns it dreamed of, the walking away of their corona project and dumping the debt onto us taxpayers via the FDIC/Indycrap, and the sheer and disgusting amount of debt shifting going on... this company is done in 2009.
All of you Brightwater employees/former employees who came on here and acted like a total douchebag... when I tried to warn you that your company was headed to BK, you can all kiss my a$$. I tried, I really... truly tried to show you how if you actually read the quarterly and annual statements, then you would know where you were headed. But either you didn't read them, or you didn't understand them. You get what you deserved. The writing was on the wall, and I just tried to point you to the wall, and now the wall is falling on your head. Your company isn't even worth shorting it is so worthless. Lessons from the 90s should have been learned from Katheryn made at Koll.
They go and pay $10.9mil in debt, keep $1.6mil to probably make payroll, but agree to a lease of $262,500 a month or $15,441 a month per home, give up 75% of the profits of the model homes, and they think this is a good thing?
A reminder...
The Registrant also announced that it delivered seven (7) homes at Brightwater at an average price of approximately $2.1 million during the fourth quarter, including two (2) Cliffs homes and four (4) Breakers homes, which are the larger homes at Brightwater. Including the model homes, the Registrant delivered 40 homes in 2008 at Brightwater and 49 homes project-to-date. The Registrant has generated two (2) new sales orders at Brightwater since the quarter ended September 30, 2008.
42.5% of their sales were the model homes. My gawd... nearly half.
If you really want to have fun, then check out the lease terms. If they F'up on any of their loans, they are considered in default. Check it out, that will hurt them like no other.
And here is the dagger to heart...
The Registrant utilized $10.2 million of the model home sales proceeds to make repayments under its Brightwater credit agreements, thereby reducing the payments that would have been due in 2009. The Registrant also utilized $10.7 million to reduce the balance outstanding under its revolving credit agreement, which amount can be re-borrowed under the terms of the revolver. The Registrant’s current liquidity, including cash on hand and availability under the revolver, is approximately $16.0 million. For accounting purposes, this transaction will be treated as a financing rather than a sale since the Company has a continuing interest in the property through its eligibility for profit participation.
Holy sh*t! Just last quarter they amended their $210mil credit revolver for an additional $100mil, and now they only have $16mil available? OMG! This is horrendous, awful, and down right scary.
At $0.56 a share, having very little credit line left, a vulture fund that will never see the returns it dreamed of, the walking away of their corona project and dumping the debt onto us taxpayers via the FDIC/Indycrap, and the sheer and disgusting amount of debt shifting going on... this company is done in 2009.
All of you Brightwater employees/former employees who came on here and acted like a total douchebag... when I tried to warn you that your company was headed to BK, you can all kiss my a$$. I tried, I really... truly tried to show you how if you actually read the quarterly and annual statements, then you would know where you were headed. But either you didn't read them, or you didn't understand them. You get what you deserved. The writing was on the wall, and I just tried to point you to the wall, and now the wall is falling on your head. Your company isn't even worth shorting it is so worthless. Lessons from the 90s should have been learned from Katheryn made at Koll.
OC Zed_IHB
New member
graphrix said:
Well, at least they are at rental parity.
Shadax_IHB
New member
OC Zed said:
I must have read the PR wrong because I thought it said the company should receive 75% of the excess profits from the future sale, not 25%. But will there even BE "excess profits" in 3 years?
OC Zed_IHB
New member
Shadax said:
It depends on whether you believe in the Easter Bunny and Santa Claus.
O
Oscar_IHB
Guest
The Man said:
Don't wait! Put the government's money in your pocket for a change, and with the
historic low interest rates
Someone needs a lesson in how taxes work, taught with a blowtorch and a pair of rusty pliers.
Isn't this the place on the swamp in HB? ;-)
freedomCM_IHB
New member
hah, and that $10k is what, 1% of the price?
stepping_up_IHB
New member
Yeah, and quite regularly first time home buyers step right into a $800K plus house!
Shadax_IHB
New member
Anyone noticed the trailers on the other side of Bolsa Chica (the other empty lot)? Were they there for Brightwater in Huntington Beach or is the other parcel being developed? Hehe, another thing I noticed when I go on runs past Brightwater in Huntington Beach is the racket the frogs make in the "nature preserve" area 
I like Plan 1 of The Trails. It's not large, but it's functional to me. I'd probably delete the wall/closet between the two secondary bedrooms, but still.
I like Plan 1 of The Trails. It's not large, but it's functional to me. I'd probably delete the wall/closet between the two secondary bedrooms, but still.frugalwithclass_IHB
New member
i have visited the sales office about 3 times. i last went around dec or so. i have been shocked that they didnt lower the prices earlier. i like the model 4 of both the cliffs and the breakers. shocked people are paying over $3mil for the largest home. they are nice but it seems like the area changes when you pass bolsa. just doesnt seem like a 3 mil home. plan 4 (forget which village is larger) is around 1.8mil right now. 25% drop and they might get my interest.
frebay_IHB
New member
i got an email today from the builder that they sold 14 homes within the last couple months and lowered their price. wonder who are buying these homes....
graphrix_IHB
New member
frebay said:
From their 10-Q ending in March...
We delivered five homes at an average price of $2.4 million (including three Breakers view homes averaging $3.2 million) during the three months ended March 31, 2009 and two additional homes at an average price of $865,000 in April and May 2009. As of May 11, 2009, seven Brightwater homes (including one home with wetland and ocean views) are in escrow at an average price of $1.2 million, or approximately $525 per square foot, and 13 additional homes are completed or under construction and have been released for sale.
They would have to have closed all seven of the homes that were in escrow since the 15th of May to have closed 14 homes for all of the year. They are either lying (SEC violation) or they are exaggerating the number to include homes in escrow, because as of three weeks ago they only had sold 7 homes in Brightwater all year long.
frugalwithclass_IHB
New member
this place seems like a wreck on the side of the street, but the driver is in denial and gets in his/her car and drives off like nothing happened while pieces of the car fall on the street. i am still in shock that people/investors have paid 3mil for some of these homes while the RE market was falling apart. they probably thought it was just going to be mild and the hosue would be 4mil by the following yr. they forgot to divide by 2 LOL. earlier this yr they had a "sales event" in which they brought either an interior designer or a chef to help with demonstrations . i was like what the hell. how will that motivate me to buy a 2mil home. just save your money on dumb campaigns, smell the coffee and lower the price LOL
graphrix_IHB
New member
HB Big Bird said:
Looks like I am getting closer to winning that bet. Did you ever buy that home? Do you even still work for Hearthside? Just make sure you pay me before they go BK.
freedomCM_IHB
New member
I love those numbers.
$10.2 revenue, $7.3 loss for the quarter.
$10.2 revenue, $7.3 loss for the quarter.
caycifish_IHB
New member
graphrix said:
From the link:
"He called sales at Brightwater “pretty solid,” and added, “One of the reasons we need to modify the loan is to provide more money for construction … once the (economic) tide turns we won’t be able to keep buyers away.” "
HAHAHAHAHAHAHAHAHA! Indeed, if you can hold out that long and considering that all you will have left are the big, expensive properties.
graphrix_IHB
New member
freedomCM said:
Ha! You think those numbers are scary...
As of June 30, 2009, we had $216.3 million of debt (including the model home financing) against $59.4 million of book equity.
From their 10-Q from last year:
Based on current sales price projections, the various Brightwater products are currently expected to generate gross margins of approximately 28% to 40% due to our low carrying value in Brightwater. Gross margins for the larger homes at The Cliffs and The Breakers are currently expected to approximate 35% to 40%, while gross margins at The Trails and The Sands are currently expected to approximate 28% to 35%.
From their current 10-Q:
Based on current sales price and cost projections, the various Brightwater products are currently expected to generate gross margins of approximately 9% to 28% due to our low carrying value in Brightwater. Gross margins for the larger homes at The Cliffs and The Breakers are currently expected to approximate 23% to 28%, while gross margins at The Trails and The Sands are currently expected to approximate 9% to 22%. The decrease in expected margins reflects price reductions required to be competitive under current market conditions, additional incentives to sell standing inventory and greater use of third-party real estate brokers.
In the current 10-Q, they state how difficult it is to sell The Cliffs and The Breakers due the price and lack of financing for borrowers. Mmmm... denial much? Those gross margins will be further reduced as they realize it is the price stupid why The Breakers and The Cliffs aren't selling and they finally reduce the price. At a gross margin of 9% on The Sands and The Trails they are a sinking ship when it comes to net revenue, and that is what is selling best, if you can even call it that.
They are doomed.
usctrojanman29_IHB
New member
So the question is...when do they go BK???graphrix said:
IrvineRenter_IHB
New member
O.C. builder can’t make $57 million in debt payments
The builder of the Brightwater development overlooking the Bolsa Chica wetlands reported today that it won’t be able to repay at least $57 million due over the next 11 months unless it can restructure its debt. brightwater
California Coastal Communities, which is building the 356-home oceanview project in Huntington Beach, said in public filings that sales are not generating enough cash flow to cover loan payments due in December, March and June. In addition to the $57 million in loan payments, it also must pay off the balance of a loan in June.
The company said in its 10Q report:
“Based on Brightwater sales thus far in 2009, which have been primarily for the smallest Brightwater home product (The Trails), the current product mix of home sales is not expected to generate sufficient cash flow to meet the December 31, 2009 scheduled loan repayments of $10 million on the revolving loan and $12.3 million on the term loan.
“Based on current projections of Brightwater closings during the nine months ending March 31, 2010, we do not expect to generate cash from operations in an amount sufficient to allow us to make the $25 million in loan repayments due on March 31, 2010.
“In addition, we do not expect to be able to repay the revolving loan by its June 30, 2010 maturity date or to make the $10 million term loan payment also due on June 30, 2010.”
In an interview this afternoon, California Coastal CEO Raymond J. Pacini said he expects the renegotiations to go well. “I’d say it’s very likely that we’ll succeed,” he said. “We’ve had some very positive discussions .. we need to stretch out the payments to better align with the current sales pace.”
Pacini said the company was in the same boat a year ago, with a more difficult economy.
He called sales at Brightwater “pretty solid,” and added, “One of the reasons we need to modify the loan is to provide more money for construction … once the (economic) tide turns we won’t be able to keep buyers away.”
The company also reported in filings:
* The builder has sold 63 homes in Brightwater as of June 30.
* A net loss of $7.3 million, compared to a net loss of $3.1 million in Q2 2008.
* Q2 revenues of $10.5 million from 12 homes, including 9 in Brightwater.
* Gross operating profit of $1.9 million generated primarily from the 9 homes.
Pacini said in a news release:
“While our operating results continue to reflect the ongoing downturn in the homebuilding industry, we are encouraged by steady sales of the smaller homes at Brightwater during the quarter.
“During the last five months (March-July), we generated 20 net sales orders at Brightwater. However, the limited availability of jumbo mortgage financing and excess supply of resale homes over $1.5 million in Huntington Beach continues to constrain sales of the larger Cliffs and Breakers homes.”
Brightwater, in Huntington Beach, is the largest asset in the California Coastal’s portfolio, representing approximately 95% of real estate inventories as of June 30. The company says it expects the project to generate gross margins of approximately 9%-28%, depending on the size of the homes sold and other factors. It began selling homes at Brightwater two years ago.
The builder of the Brightwater development overlooking the Bolsa Chica wetlands reported today that it won’t be able to repay at least $57 million due over the next 11 months unless it can restructure its debt. brightwater
California Coastal Communities, which is building the 356-home oceanview project in Huntington Beach, said in public filings that sales are not generating enough cash flow to cover loan payments due in December, March and June. In addition to the $57 million in loan payments, it also must pay off the balance of a loan in June.
The company said in its 10Q report:
“Based on Brightwater sales thus far in 2009, which have been primarily for the smallest Brightwater home product (The Trails), the current product mix of home sales is not expected to generate sufficient cash flow to meet the December 31, 2009 scheduled loan repayments of $10 million on the revolving loan and $12.3 million on the term loan.
“Based on current projections of Brightwater closings during the nine months ending March 31, 2010, we do not expect to generate cash from operations in an amount sufficient to allow us to make the $25 million in loan repayments due on March 31, 2010.
“In addition, we do not expect to be able to repay the revolving loan by its June 30, 2010 maturity date or to make the $10 million term loan payment also due on June 30, 2010.”
In an interview this afternoon, California Coastal CEO Raymond J. Pacini said he expects the renegotiations to go well. “I’d say it’s very likely that we’ll succeed,” he said. “We’ve had some very positive discussions .. we need to stretch out the payments to better align with the current sales pace.”
Pacini said the company was in the same boat a year ago, with a more difficult economy.
He called sales at Brightwater “pretty solid,” and added, “One of the reasons we need to modify the loan is to provide more money for construction … once the (economic) tide turns we won’t be able to keep buyers away.”
The company also reported in filings:
* The builder has sold 63 homes in Brightwater as of June 30.
* A net loss of $7.3 million, compared to a net loss of $3.1 million in Q2 2008.
* Q2 revenues of $10.5 million from 12 homes, including 9 in Brightwater.
* Gross operating profit of $1.9 million generated primarily from the 9 homes.
Pacini said in a news release:
“While our operating results continue to reflect the ongoing downturn in the homebuilding industry, we are encouraged by steady sales of the smaller homes at Brightwater during the quarter.
“During the last five months (March-July), we generated 20 net sales orders at Brightwater. However, the limited availability of jumbo mortgage financing and excess supply of resale homes over $1.5 million in Huntington Beach continues to constrain sales of the larger Cliffs and Breakers homes.”
Brightwater, in Huntington Beach, is the largest asset in the California Coastal’s portfolio, representing approximately 95% of real estate inventories as of June 30. The company says it expects the project to generate gross margins of approximately 9%-28%, depending on the size of the homes sold and other factors. It began selling homes at Brightwater two years ago.