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Date of Issue: January 04, 2007

Court approves sale of GSR's Villa Rosa lot

The U.S. Federal Bankruptcy Court in Tampa last week approved the sale of financially troubled GSR Development's Lot No. 14 and accompanying model home at its Villa Rosa housing project in Anna Maria.

Judge K. Robert May approved the auction sale of the property to Capital Crossing Bank of Massachusetts for the $1.875 million lien held by Fifth Third Bank plus a nominal fee. Capital Crossing then assigned its rights to the property to CapX Realty LLC, a foreign-based subsidiary of Capital Crossing. Court documents indicated no other bank bid on the property.

While Fifth Third Bank recovers its investment in GSR, the sale of the property does not come without some baggage for Capital Crossing.

The property has not been officially platted and contractors involved with construction of the model home estimate an additional $800,000 is needed to meet Anna Maria's criteria for issuance of a certificate of occupancy.

In addition, NBA player Theo Ratliff of the Boston Celtics has filed a notice with the Manatee County Circuit Court that he has a contract to purchase the house - when ready for occupancy - for $2.5 million. The contract was signed in April 2004.

According to its Web site, Capital Crossing Bank is a mid-major bank in Boston that deals almost exclusively with real estate loans and transactions and leasing properties. It has very little consumer business. CapX appears to be a legitimate real estate company that operates in several states.

Efforts to reach Maria Stahl of Capital Crossing Bank to determine what plans CapX has for the property were unsuccessful.