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Paradise Preserve goes on the auction block

By Staff | Apr 9, 2009

Paradise Preserve will go on the auction block on April 14. The foreclosure for the site, known locally as the old Lochmoor Country Club, is noted as the biggest in Lee County history.

In the case of the Marshall Group versus Paradise Preserve LLC, $71 million was the amount lent to developer Paradise Preserve LLC in 2005 for the redevelopment of the golf course and marina, which now tops approximately $90 million ($71 million in loans plus interest and fees). Plans included building three 26-story condominiums, improving the property’s marina and developing a $22 million golf course, but the project was never completed.

A total of 749 single-family homes were also approved for the development, but they were never built.

Now the auction for the property will be held April 14 at a U.S. Marshal’s auction at the Lee County Courthouse in downtown Fort Myers.

“The allure of the developed community is substantial enough to find an investor to step up and complete the development,” said local real estate broker Scott Brenner. “It has everything – waterfront marina, golf course, is centrally located close to shopping, close to health care, close to perfect.”

When asked specifically about the foreclosure, with it being the largest to date in the county, Lee County Commissioner Tammy Hall said, “The challenge is that in this market, we’re seeing a lot of first times. We’re disappointed that Paradise Preserve got caught up in this financing debacle and they have to walk away. These investors are losing a tremendous amount of money.”

She said she was also disappointed because the plans had seemed so promising at one time.

“It really would have been a shining star in the community,” she said. “Again the timing of the project really, really hurt them.”

Hall said she was asked by several residents if the county would consider buying it and her answer is no.

Recently, the new managers of the Paradise Marina held a “Boater’s Open House” at the facility, drawing many to the marina.

“We have an agreement with the bank ([the Marshall Group) to stay on and preserve the assets while maintaining the marina and associated properties,” said marina manager Steve Jacobs. “We’ve reduced our rates to try to increase the number of boats we have here.”

The other new manager is Rick Guthrie.

Current residents of the area attending the open house said the new managers are doing a great job in managing the marina. One thing it offers is live-aboard capabilities and amenities available to boaters.

The auction will take place at noon on the steps of the Lee County Courthouse, located at 1700 Monroe St., in Fort Myers.