The Man - 27 February 2009 01:50 AM

——Forwarded Message——
From: Brightwater Sales <@kovachmarketing.com>
Sent: Thursday, February 26, 2009 4:17:46 PM
Subject: Act Now!  Take Advantage of CA Tax Credit!

Act Now!  Take Advantage of CA Tax Credit!
 

That’s right! The new California budget includes a $10,000 tax credit
for buyers of newly constructed homes.

Here are the details:
• The credit will be paid over three years in three equal amounts.
• You do not have to be a first-time home buyer.
• There are no income restrictions.
• There is no repayment requirement if you live in the home for at
  least two years.

You must act quickly, because the credit is available on a first-come, first-served
basis and limited to the first 10,000 buyers of new homes who take advantage of it.

If you are a first-time buyer, you may also be eligible for the federal government’s
$8,000 tax credit in addition to the California credit.

Don’t wait! Put the government’s money in your pocket for a change, and with the
historic low interest rates, now is the time to celebrate with a brand-new home just
steps from the beach at Brightwater, the last new community of its kind along the
north coast of Orange County. Call or visit today and discover the exceptional
values available now at all four Brightwater neighborhoods.

Sheesh…desperation.

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? 

hah, and that $10k is what, 1% of the price?

Yeah, and quite regularly first time home buyers step right into a $800K plus house!

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 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.

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….

frebay - 08 June 2009 12:55 AM

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….

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.

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

HB Big Bird - 04 February 2008 11:07 PM

To the bloggers who are negative about this community( graphix,winex,elricseven,awgee,irvinerenter),
        This site works perfect for you because we don’t know who you are. What we do know you will not be buying here, even if prices drop you still won’t be able to afford it!!!! My parents taught me at a very young age to work hard provide shelter for your family and follow your dreams. It sounds like the negative bloggers on this site skipped a couple of those steps so now they are mad because they will not be able to enjoy this upcoming community in HB. I bet they were blogging negative stuff when Seacliff was built and it was over-priced back then, but look what happened to Seacliff prices… do I need to say more. Graphix, I will take you up on your bet of $20.00 on Shea Homes completing this community. As I said on my first blog, I will enjoy the community and the views and can’t wait for the builder to release the location I am waiting for.

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.

I love those numbers.

$10.2 revenue, $7.3 loss for the quarter.

graphrix - 08 August 2009 04:30 AM

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.

freedomCM - 08 August 2009 06:54 PM

I love those numbers.

$10.2 revenue, $7.3 loss for the quarter.

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 - 08 August 2009 08:21 PM

freedomCM - 08 August 2009 06:54 PM

I love those numbers.

$10.2 revenue, $7.3 loss for the quarter.

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.

So the question is…when do they go BK???

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.

this place is a train wreck.  my wife and i first visited this place like 2 yrs ago.  i couldnt believe the prices, large view homes were over 3mil at that time.  next to the wetlands in an area that smells like sewer at times. dont get me wrong, i like them but i thought they were like 50% overpriced.  i have been going to check out the prices for what seems like the last 2yrs.  they are now cutting prices.  just got an email last week for one of the homes at 1.4mil , use to be 1.8mil if my memory is correct.  the sales people are somewhat rude because they are frustrated.  i cant believe their sales.  i thinkt he 20mil in sales they reported were the 14 or so homes they sold to a private equity firm a few months back.  i cant believe they dont cut the prices some more and bite the bullet.  they should have done that over a year ago.

retracted.

frugalwithclass - 11 August 2009 04:34 AM

sorry to have to ask but does anyone know how i remove my profile name (the part that reads living with parents) i have no idea how that got there LOL

The “living with parents” is part of the classification system based on the number of posts. The more posts you make, the better your “accommodations.”

frugalwithclass - 11 August 2009 04:34 AM

sorry to have to ask but does anyone know how i remove my profile name (the part that reads living with parents) i have no idea how that got there LOL

You need to post more often like me and get the Custom Estate status. 

Oh nooooo! Looks like chapter 11 is around the corner. It was inevitable.

And for those who worked for Cal Coastal and came on here acting like jerks and changing your screen names… I told you so!

Here you go, Graph

do you think another builder is going to pick up the project?

Chapter 11 filing announced: http://huntingtonhomes.freedomblogging.com/2009/10/28/bolsa-chica-developer-files-for-bankruptcy/66825/

Company press releaseweb announcement: http://investors.californiacoastalcommunities.com/releasedetail.cfm?ReleaseID=419305

Excerpt:

IRVINE, Calif., Oct 28, 2009 /PRNewswire-FirstCall via COMTEX News Network/—California Coastal Communities, Inc. (Nasdaq: CALC) announced today that the Company and certain of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to extend the maturity dates of approximately $182 million of indebtedness related to the Company’s Brightwater development project and to modify and eliminate certain debt covenants. The petitions were filed on October 27, 2009 in the U.S. Bankruptcy Court in the Central District of California.

TI

graphrix - 03 October 2009 12:10 AM

And for those who worked for Cal Coastal and came on here acting like jerks and changing your screen names… I told you so!

Next on the list, Robert Larsen ESQ.

HGraygoose - 25 August 2008 07:50 PM

I have been reading this blog intermittingly and I am a major investor in CALC working at Dimensional Fund Advisors. I am quite disappointed that the stock price is at all time 52 week low today. I firmly believe that these homes are a good product, yet sales need to increase now. Sales are a function of the experience and tact of the sales team and from everything that I have read, it seems that this sales team is anything but less than average. I am located in Chicago and haven’t actually seen the homes. Have any of you seen a new sales force or is it the same team that was hired at the opening of the project? I would be interested in seeing a “changing of the guard” so to say. From the sales team to the Sales Manager. It doesn’t seem they have good attitudes to be working with potential buyers. Maybe some fresh faces and more experienced sales agents are what is needed to revitalize project and drive sales.  I would at this point, give CALC a SELL rating.

Dude, I hope you guys got clear before this train went over the well marked cliff.

CALC delisted