Brightwater Huntington Beach reduced 300k?

NEW -> Contingent Buyer Assistance Program
I like the "No competition in HB" bit above.



Since I know of at least one that is in construction, the bluecanvasbungalow one on Newland/Hamilton





And thanks for the smell test info. I live a few blocks from PCH south of main, and never smell it. But when I bicycle over to the wetlands by Brightwater, or over to the wetlands by Brookhurts, it is sometimes overwhelming. Must be an afternoon thing.
 
[quote author="freedomCM" date=1216892558]since you live nearby, do you get the odors too?</blockquote>


I drive by there on my way home from work every day. If it's low tide and there's little wind, the stench can knock you right off your horse. High tide and/or a good wind, it's not so bad.
 
[quote author="HB Big Bird" date=1202191670]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.</blockquote>


Are you still this optimistic?
 
[quote author="HB Bear, Too" date=1216976693][quote author="HB Big Bird" date=1202191670]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.</blockquote>


Are you still this optimistic?</blockquote>


If you listen to that conference call with CalCoastal's CEO on how they need to renegotiate the terms of the loans they have with Key Bank, and then you <a href="http://online.wsj.com/article/SB121675515709274459.html">read this article from the WSJ</a>, then you might be a little nervous about your job there at Hearthside homes.



<em>Tuesday, KeyCorp, a major lender to home builders, reported a $1.13 billion loss, saying its second-quarter results were "adversely affected" by higher loan losses related to its efforts to "aggressively reduce its exposure to the residential properties segment of its commercial real-estate construction loan portfolio." The bank's provision for loan losses in the second quarter was $647 million, up from $187 million in the previous quarter.</em>
 
another update I got from brightwater today:



Head to the Beach for a Day, Stay for a Lifetime!

Surf's up, the water's warm and the sands are sunny. What a great time to visit Huntington Beach! And while you're at it, why not stop into Brightwater, where you can make every day a day at the beach? Large numbers of home buyers have already made that decision. Along with being in walking distance of the beach and the Bolsa Chica Ecological Reserve, they were attracted by the award-winning home designs of Brightwater's four impressive neighborhoods: The Trails, The Sands, The Cliffs and The Breakers. Residents also appreciate everything that's close to Brightwater:



* Shopping, dining and entertainment in downtown Huntington Beach <strong>Are you kidding me? Downtown huntington is miles away</strong>

* The 405 Freeway for convenient commuting to LA and Long Beach <strong>it would take 15-20 min to get to the 405 during rush hour</strong>

* Exciting events like Surf City Nights and the Art-A-Faire. For a complete list of upcoming events, click here.

* Fun-filled local attractions like the International Surfing Museum and the Huntington Beach Pier. To discover more, click here.



Summer is Huntington Beach's time to shine, and nowhere does it shine brighter than at Brightwater, the last new community of its kind along the north coast of Orange County. We hope to see you again soon.
 
For those of you who were concerned about the close proximity of the KFC to this development, never fear, the owner has decided not to comply with corporate remodel requirements, and has renamed the business "The Chicken House". Same basic idea though. He is adding some extra types of chicken to the menu.
 
[quote author="Reluctant HB" date=1217224382]For those of you who were concerned about the close proximity of the KFC to this development, never fear, the owner has decided not to comply with corporate remodel requirements, and has renamed the business "The Chicken House". Same basic idea though. He is adding some extra types of chicken to the menu.</blockquote>


That is single handedly the best news this thread has ever seen.
 
LOL! The Chicken House. Yes, they sure did. I just moved to an apartment down the street from this development. I haven't made it to Brightwater in Huntington Beach in a while but I'm curious to see it again. I wonder how much the houses have settled since I've been gone :)
 
Cal Coastal reported yesterday...



"Second quarter homebuilding revenues of $10.4 million reflect a $6.2 million

increase compared with the second quarter of 2007. This increase is primarily

due to <strong>seven deliveries at Brightwater</strong>. The average sales price of homes

delivered in the second quarter of 2008 increased to $693,300 from $466,700 in

2007, primarily reflecting deliveries of the smaller homes (The Trails and The

Sands) at Brightwater in the current year, compared with only deliveries at

inland communities in 2007.





During the second quarter of 2008, net new orders increased 136% to 26 homes

compared with 11 homes during the comparable period of 2007, primarily due to

<strong>11 sales orders generated at Brightwater during the quarter</strong>. Cancellations as a

percentage of new orders were 19% (15% at Brightwater and 21% at our inland

projects) during the second quarter of 2008, compared with the 35% cancellation

rate during the comparable period of 2007."



So if I remember right that was 8 deliveries in the first quarter and 7 in the second at Brightwater Huntington Beach for a total of 15 in the first six months. Graph, don't they need to deliver 50 units in 2008 to comply with their loan covenants? Isn't 35 delivered units in the next 4 months a bit impossible?
 
I just visited Brightwater in Huntington Beach maybe 10 days ago. The last time I was there, the models for The Cliffs/Breakers had not been built. All things considered, I really liked the way they set the models up out front. For anyone who has not been there, the front yards and "street" between the two rows of models has been used as a greenbelt w/ sidewalks, etc. Just a shame it will all eventually be torn down...although given their inability to sell these things, the greenbelt may live a longer life than originally intended =)
 
Just now getting to the CALC 10Q. Here is the level of desperation they are in...

<em>

Cash Flows and Debt Compliance



Negative conditions in the current housing and credit markets give rise to uncertainty as to the Company?s present and future ability to meet its projected home sale closings and whether new or modified financings can be obtained, if needed. Given the number of homes currently under construction, the Company does not expect to be able to generate enough cash flow from operations at Brightwater during 2008 to make the currently scheduled debt repayments. Therefore, during the second quarter of 2008, the Company initiated discussions with its lenders regarding potential amendments to the senior secured revolving loan and senior secured term loan that would extend borrowing availability and extend the September 2009 maturity date for the revolving loan. Amendments to the payment schedule and maturity date will require the unanimous consent of the bank syndicates. In addition, the Company is seeking modification of certain covenants to accommodate the slower projected pace of sales. In exchange for these amendments, the Company has offered to pay modification fees and an increase in the interest rates charged under the senior secured revolving loan and senior secured term loan. As of August 11, 2008, the Company?s negotiations remained ongoing with the members of the bank syndicates and the Company is striving to obtain final approval prior to September 30, 2008. The Company, like many other homebuilders, is constantly evaluating potential alternatives regarding its capital structure including, but not limited to, various strategies for restructuring its debt and raising additional capital. There can be no assurance that the Company will be successful in any of these endeavors, or that requested amendments to the senior secured revolving loan and senior secured term loan will be agreed to by the Company?s lenders. Current credit market conditions present uncertainty as to the ability of the Company to secure additional financing, if needed, and the terms of such financing if it is available, and as to the ability of the Company to achieve positive cash flow from operations required to satisfy its obligations. See Notes 4 and 5 for further discussion.</em>



Notes 4 and 5 are long and have tables that won't copy over very well, but it shows they exceed their debt ratio covenent. But here is a gem from their Corona project...

<em>

On June 13, 2008, Hearthside Homes and one of its subsidiaries received a notice of default related to the subsidiary?s Corona-Hellman loan facility from IndyMac Bank (?Hellman Loan?) indicating that the subsidiary is not in compliance with the absorption rate and home closings requirements of the loan. IndyMac Bank informed the subsidiary that it will not make any further disbursements, including interest, under the Hellman Loan until the subsidiary cures the default by closing nine homes at the Hellman project by August 12, 2008. This subsidiary of Hearthside Homes has delivered three homes since receiving the notice and an additional home is in escrow as of August 4, 2008. However, based on current market conditions and the lack of sufficient inventory of completed homes, the subsidiary does not expect to be able to cure the default. Hearthside Home?s subsidiary has made all required interest payments and the principal balance of the Hellman Loan is not due until January 2009. Hearthside Homes?s subsidiary is evaluating its alternatives with respect to the Hellman project. The Hellman loan is nonrecourse to the Company.</em>



I posted an article somewhere in the forums from the WSJ on how the banks are cutting appraisal values and cutting out lending to builders as a whole. If that holds for Heartside Homes, then they are certainly toast before the end of the year.



Also, they have six homes left in Lancaster to sell, but with a loan balance of $3.8mil left. Do homes sell for $634k in Lancaster? Because that is what will be needed to pay off that debt.



To all the Brightwater and Hearthside employees, I'm sorry to inform you that your company is toast, done. I hope despite all your bitterness towards me that you actually listened, and you started to search for jobs way back when I said your company would go BK. If you didn't, well... good luck, you're gonna need it.
 
I am or should I say WAS a potential homebuyer at Brightwater until I went for a tour, met with some of the sales staff, and was utterly repulsed by the experience. First of all, I can easily afford to buy the home being a cash buyer. I went to the Breakers and Cliffs office. For my family of two, the Cliffs were the right size. The models were beautifully decorated.



However in the last few months, I've seen the prices drop, and drop, and drop, and the incentives to go higher and higher. This builder is so desperately in financial trouble that they are dropping home prices like no tomorrow. I've done a little research on them and asked some friends that are in the business. It seems that their other development sites in Lancaster and in the Inland Empire are in trouble, as I have also read in past postings. A friend of mine is the friend of the Sales Manager that represents the IE homes and it seems like a few of their current escrows are bogus. The buyers have dropped off and they haven't cancelled them in order to look good in front of their banks! SHAME SHAME SHAME. Shame on Hearthside for defrauding banks and investors!!!!!! SHAME!!! I wonder how many of your homes at Brightwater are sold to bogus buyers!



Getting back to Brightwater, I met with the sales staff recently, namely a schmo named Joe (ha! the name fits). what an aloof type of guy. no motivation, no energy, and he seems like a used car sales man. Then I met with a lady named Louise on my way out, after loooking at the models. She talks, and talks, and talks, and has a weird laugh and then is so RUDE with her tone. And then she looks at you with a cold stare. Not the reception that I was hoping for quite honestly. Why would I want to be in escrow for 8 months with these characters? Imagine-It would be utter hell. Fake Hell!



Though the homes look great. They are not worth the price at all. I hope their current buyers negotiate at least $200,000 because that is money that they will be losing in a year! I hope Shea or any other developer buys this site and outs these morons running this joint!
 
By the way, I am a finance gal and checked out the information that was posted regarding the financials. Graphix, your information is correct and I verified. Thank you for always updating us and giving us valuable information. Anyone who says otherwise is probably an employee disguised as a blogger. Good luck to these buyers because they seriously need it! Take your business elsewhere!!!!!!!!!!
 
So... you mean the one escrow they have in Lancaster is bogus? I dunno, check out the price drop on those bad boys...



<em>In December 2005, we acquired 77 additional lots in an area known as Quartz Hill in the City of Lancaster. The homes in this community are on 10,000 square foot lots and will average 3,640 square feet. Construction of models began in May 2006 and we opened for sales during July 2006. We delivered three homes at an average price of <strong>$537,000</strong> during 2006 and 12 homes during 2007 at an average price of <strong>$427,000</strong>. During the first six months of 2008, we delivered one home at a price of <strong>$383,000</strong>. During July 2008, we delivered <strong>one additional home</strong> at a price of <strong>$350,000</strong>. As of August 4, 2008, <strong>one home</strong> is in escrow at a price of <strong>$280,000 </strong>and two additional homes are completed and available for sale. We are delaying the remainder of the project until sales activity in the area improves. We are also evaluating our alternatives with respect to this project in light of the FDIC takeover of IndyMac Bank, which has been our lender on this project.</em>



Or their defaulting project in Corona...

<em>

Corona. We acquired 83 lots in North Corona in May 2004. Following construction of infrastructure, during April 2005, we began construction of homes averaging 3,160 square feet. We opened for sales during the third quarter of 2005 and delivered 58 homes during 2006 at an average price of <strong>$600,000</strong>. We delivered 21 homes during 2007 at an average price of <strong>$511,000</strong> and one home during the six months ended June 30, 2008 at a price of <strong>$450,000</strong>. As of August 4, 2008, <strong>the final three homes are in escrow at an average price of $438,000</strong>.



<strong>During April 2005, we acquired 151 additional lots in Corona</strong>. Following construction of infrastructure, construction of five model homes averaging 3,600 square feet on lots of approximately 7,200 square feet began during the fourth quarter of 2006. These models were completed during April 2007, and we opened for sales during the second quarter of 2007. We delivered three homes at an average price of <strong>$545,000</strong> during 2007 and five homes at an average price of <strong>$456,000 </strong>during the first six months of 2008. As of August 4, 2008, <strong>one home is completed and in escrow at a price of $450,000</strong> and three homes are completed and available for sale. We are evaluating our alternatives with respect to this project in light of the FDIC takeover of IndyMac, which has been our lender on this project.</em>



Yes... cracker_box_boy reads the 10Qs and Ks. Maybe the Brightwater and Hearthside homes employees should too. The writing was on the wall, and all I did was copy and paste. Oh... and take some pictures too. :coolcheese:
 
Oops... how could I forget to add that the loan from IndyCrap is a non-recourse loan. Yup, that is right, IndyCrap Federal Bank aka the FDIC will be a proud owner of worthless land in Corona without any way to get any money back from Hearthside since it is non-recourse. Is it really any wonder why IndyCrap failed now?
 
since it looks pretty obvious that hearthside is going under, can someone run some scenarios after they file for bankruptcy?



they don't develop at all, and the place will turn into a ghost town

a bigger builder takes over, and not build until the market changes in a few years

a bigger builder takes over, and lowers prices to move homes

any other scenarios?



hearthside must hate this site, as it has scared off a dozen buyers!
 
[quote author="frebay" date=1218638977]since it looks pretty obvious that hearthside is going under, can someone run some scenarios after they file for bankruptcy?



they don't develop at all, and the place will turn into a ghost town

a bigger builder takes over, and not build until the market changes in a few years

a bigger builder takes over, and lowers prices to move homes

any other scenarios?



hearthside must hate this site, as it has scared off a dozen buyers!</blockquote>


Shea Homes owns some of the land there, and they will have first dibs on this project with their private equity money. If they don't step up, then Laing will, with their oil money. Either way, they will buy the lots on the cheap and either sell them on the cheap or hold them like Hearthside Homes did, but without the obscene amount of debt. It really is sad that Cal Coastal/Hearthside didn't learn their lesson from the Koll Co., but then again the CEO of Cal Coastal was drinking the Kool-Aid back then as a VP.



Yeah... Heartside hates this site for telling the truth, too bad they got drunk off the Kool-Aid and didn't warn people of the reality of their position.
 
[quote author="morekaos" date=1218575330]Cal Coastal reported yesterday...



"Second quarter homebuilding revenues of $10.4 million reflect a $6.2 million

increase compared with the second quarter of 2007. This increase is primarily

due to <strong>seven deliveries at Brightwater</strong>. The average sales price of homes

delivered in the second quarter of 2008 increased to $693,300 from $466,700 in

2007, primarily reflecting deliveries of the smaller homes (The Trails and The

Sands) at Brightwater in the current year, compared with only deliveries at

inland communities in 2007.





During the second quarter of 2008, net new orders increased 136% to 26 homes

compared with 11 homes during the comparable period of 2007, primarily due to

<strong>11 sales orders generated at Brightwater during the quarter</strong>. Cancellations as a

percentage of new orders were 19% (15% at Brightwater and 21% at our inland

projects) during the second quarter of 2008, compared with the 35% cancellation

rate during the comparable period of 2007."



So if I remember right that was 8 deliveries in the first quarter and 7 in the second at Brightwater Huntington Beach for a total of 15 in the first six months. Graph, don't they need to deliver 50 units in 2008 to comply with their loan covenants? Isn't 35 delivered units in the next 4 months a bit impossible?</blockquote>




3:01 AM posting? Graph, when do you sleep? Anyway, does this 50 delivered homes goal still stand for Brightwater? If so when do you think they will cry Uncle?
 
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