Jubilee development back to life
- April 14, 2015
- / Carlton Proctor
- / economy
A 2,718-acre parcel of residential land in Pace that had been in foreclosure for several years has been sold to a group of Georgia investors.
Pensacola-based brokers Sonny Granger and Chris Palmer, both with Sperry Van Ness - SouthLand Commercial Real Estate, represented the seller in the $3.9 million transaction that closed March 31.
The property, formerly known as Jubilee and later as Contrada Hills had been held in receivership by California-based representatives of Wells Fargo.
[caption id="attachment_21648" align="alignright" width="450"]
A new group of investors has bought the former Jubilee project property.[/caption]
Granger said he was contacted about a year ago by the receiver and given the sale contract, he said, because of his firm’s expertise in handling complicated transactions.
“The property went through the foreclosure process, and it had been cross-collateralized,” Granger said. “It also has a number of pending issues with Department of Environmental Protection that still have to be resolved.”
The buyer was represented by former Florida legislator and Santa Rosa real estate broker Bo Johnson.
Johnson said the buyer was a group of Atlanta investors led by Ron Reeser, who was one of the original developers of Jubilee.
The ill-fated history of Jubilee began in March 2007 when the Atlanta-based Eagle Group, led by Reeser, rolled out a splashy marketing campaign, promising a planned community of 588 single-family house in the first phase alone.
The development was to be built around a golf course designed by Pensacola resident and former PGA golfer, Jerry Pate.
The golf course was in the early phases of construction when the Jubilee project came to an abrupt halt amid the housing collapse, and the Eagle Group folded.
The project was taken over by investors under the name 2718 Santa Rosa and was hit by millions of dollars in liens. It was renamed Contrada Hills in early 2008 and designated a “Community Development District” by the Santa Rosa County Commission, which allowed developers to issue tax-free bonds to pay for infrastructure improvements.
However, the ensuing recession of 2008 shut down any further development of the property.
Granger said very little infrastructure on the land is in place.
What’s more, the DEP is requiring the new owners to conduct nearly $1 million in remediation of the property’s wetlands, which were damaged by runoff from the undeveloped golf course.
Palmer said the new owners have agreed to begin remediation of the wetlands prior to launching any further residential development.
Johnson said the new owner of the property is Jubilee Holdings LLC.
“The Atlanta investors still like the name Jubilee and are excited about its future development,” Johnson said.
Johnson said a recent study by Tennessee-based MarketGraphics Research Group shows a need for 8,500 residential lots in Santa Rosa County over the next five years.
Johnson said Jubilee Holdings’ initial development plan calls for 588 lots. Development of a golf course will not go forward, and that land will be used for green space, parks and other public access land.
“Ron Reeser likes the area and is back with a substantial commitment to the property,” Johnson said.
“He has a different investment group now, and they know they have to be more closely attuned to the market demand for residential homes.”
A new group of investors has bought the former Jubilee project property.[/caption]
Granger said he was contacted about a year ago by the receiver and given the sale contract, he said, because of his firm’s expertise in handling complicated transactions.
“The property went through the foreclosure process, and it had been cross-collateralized,” Granger said. “It also has a number of pending issues with Department of Environmental Protection that still have to be resolved.”
The buyer was represented by former Florida legislator and Santa Rosa real estate broker Bo Johnson.
Johnson said the buyer was a group of Atlanta investors led by Ron Reeser, who was one of the original developers of Jubilee.
The ill-fated history of Jubilee began in March 2007 when the Atlanta-based Eagle Group, led by Reeser, rolled out a splashy marketing campaign, promising a planned community of 588 single-family house in the first phase alone.
The development was to be built around a golf course designed by Pensacola resident and former PGA golfer, Jerry Pate.
The golf course was in the early phases of construction when the Jubilee project came to an abrupt halt amid the housing collapse, and the Eagle Group folded.
The project was taken over by investors under the name 2718 Santa Rosa and was hit by millions of dollars in liens. It was renamed Contrada Hills in early 2008 and designated a “Community Development District” by the Santa Rosa County Commission, which allowed developers to issue tax-free bonds to pay for infrastructure improvements.
However, the ensuing recession of 2008 shut down any further development of the property.
Granger said very little infrastructure on the land is in place.
What’s more, the DEP is requiring the new owners to conduct nearly $1 million in remediation of the property’s wetlands, which were damaged by runoff from the undeveloped golf course.
Palmer said the new owners have agreed to begin remediation of the wetlands prior to launching any further residential development.
Johnson said the new owner of the property is Jubilee Holdings LLC.
“The Atlanta investors still like the name Jubilee and are excited about its future development,” Johnson said.
Johnson said a recent study by Tennessee-based MarketGraphics Research Group shows a need for 8,500 residential lots in Santa Rosa County over the next five years.
Johnson said Jubilee Holdings’ initial development plan calls for 588 lots. Development of a golf course will not go forward, and that land will be used for green space, parks and other public access land.
“Ron Reeser likes the area and is back with a substantial commitment to the property,” Johnson said.
“He has a different investment group now, and they know they have to be more closely attuned to the market demand for residential homes.”
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