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Date of Issue: February 08, 2007

GSR-RoseBay approval 'done,' but not yet official

RoseBay Real Estate has been approved by U.S. Federal Bankruptcy Court Judge K. Rodney May to be the exclusive sales agent for GSR properties, according to Lynn Parker of RoseBay. Parker said the judge made the ruling after a Jan. 25 emergency hearing on the motion made by GSR attorney Richard Prosser.

Officially, however, the order naming Rosebay as the exclusive agent has not yet been issued by the judge, said Meghan Kenrick, the case manager in May's office who handles the GSR bankruptcy case.

"There has been no order officially entered on the emergency application," she said on Feb. 2. "I've seen the order, but until it's officially posted, I can't comment." Kenrick added that it's possible May is still reviewing the decision.

Prosser's motion was aimed at getting a sales and marketing plan in place in time for the winter tourist season.

 According to the motion, Rosebay will offer a "buy it now" price for any property if the offer is submitted by March 15. The bankruptcy court would have to approve any sale.

In addition, according to the motion, RoseBay would be entitled to a 6 percent commission on any sale, plus an additional 1 percent bonus commission for all properties with sales contracts submitted on or before March 15 that are subsequently court approved and closed.

As an added bonus, RoseBay would get a further 5 percent of any sale of more than 10 percent above GSR's reserve price on any property.

The properties RoseBay will market for GSR, along with the asking prices, are:

  • 401 S. Bay Blvd., Anna Maria, $625,000.
  • 403 S. Bay Blvd., Anna Maria, $895,000.
  • 506 Bay Drive S., Bradenton Beach, $895,000.
  • 109 Fifth St. S., A, Bradenton Beach, $825,000.
  • 109 Fifth St. S., B, Bradenton Beach,  $825,000.
  • Seventh Street, Gardenia 1, Bradenton Beach, $925,000.
  • Seventh Street, Gardenia 2, Bradenton Beach, $895,000.
  • 615 Key Royale Drive, Holmes Beach, $1.5 million.
  • 311 61st St., Holmes Beach, $499,000.
  • 312 60th St., (A), Holmes Beach, $725,000.
  • 312 60th St., (B), Holmes Beach, $725,000.

All of the properties except 403 S. Bay Blvd. in Anna Maria are either under construction or vacant lots. The property at 506 Bay Drive S. in Bradenton Beach is listed as a furnished model.

Rosebay plans to open an office on Anna Maria Island to market the properties.

GSR's Rosa del Mar condominium development vacant property at 2504 Gulf Drive N. in Bradenton Beach was not listed in the court documents, but the asking price is reportedly around $11 million. GSR had planned to develop condominiums on the site.

GSR filed for bankruptcy on July 13, 2006. At that time, the company claimed assets of $44 million against debts of $33 million, and debts have reportedly grown considerably in the past six months.

Included in the debts are some $6 million in unsecured claims. Several Islanders, including Holmes Beach residents Kent Davis and Mel and Carol Yudofsky, are listed as unsecured creditors. Davis has a claim for $600,000, while the Yudofskys claim is just under $400,000.