Leasebusters interviewed on CKFR AM 1150 KELOWNA, BC

July 28th, 2010

Our client, Our client Jim Matthews, General Manager of Leasebusters was interviewed on CKFR AM 1150 Kelowna and discussed getting in and out of Leases.

Click Here To Listen

Kennedy Wilson Auction Group Featured in THE GALVESTON COUNTY NEWS

July 27th, 2010

Newspaper Story: Our client, Kennedy Wilson Auction Group was featured  in a news story  about an upcoming Auction in Houston, Texas.

Mast1

Lean times end for West End diners

The Daily News

Published July 27, 2010

West End story: After a long fast, dining options are improving on the island’s West End. Well-known restaurateur Randall Pettit is putting his expertise behind West End Restaurant and Sand Bar, 21706 Burnet Drive, in the space formerly occupied by Avery’s Bayside Cafe. (Avery’s owners opened Mackey’s Bar & Grill, 20801 Interstate 45, in Bayway II shopping center in Webster).

West End Restaurant and Sand Bar will offer up seafood dishes with some twists, promises Pettit, who is known for former island eateries, including Randall’s West End in Pirates’ Beach and for his early involvement in the once popular but now closed Waterman Seafood Grill, 14302 Stewart Road. Pettit also is an owner of elegant nightspot 21, 2102 Postoffice St. in the island’s downtown. Pettit’s latest project is at the 50-slip West End Marina, formerly known as Sea Isle Marina. John Turner bought the marina out of foreclosure earlier this year with plans to revive and renovate.

Pettit is aiming to officially open West End Restaurant and Sand Bar some time next week but didn’t have an exact date. The restaurant space has undergone a huge transformation, Pettit said.

“It’s a beautiful restaurant,” he said.

Stay tuned.

Gavel gossip: In these trying times, island developers continue to turn to auctions to reduce inventory and buoy property values at their projects. The latest to gravitate to the gavel is Randall Davis, developer of Diamond Beach, the 117-unit mid-rise resort and spa on 8.5 acres at the seawall’s western edge. The pale pink project came online last summer. Davis hopes to sell 40-beach-front units at an Aug. 22 auction. Starting bids are $140,000.

Last month, more than 600 people attended an auction of 27 units at East Beach development Palisade Palms. Buyers snapped up all the units, auctioneers reported.

Then, West End development Beachside Village, earlier this month held an auction for 29 home sites and commercial properties. No official word on whether that auction was a success.

For information about the Diamond Beach auction, call 800-522-6664 or visit http://diamondbeachcondosauction.com.

Mystery closure: Some mainlanders are mourning the closure of Village Pizza & Seafood, 6402 I-45, in La Marque. Corporate officials of the regional chain could not be reached for comment. Village Pizza & Seafood in Santa Fe and Texas City still are open. Stay tuned.

Welcome Matt: Readers are raving about one of League City’s newest eateries — Matt’s Restaurant & Lounge, 3202 Marina Bay Drive.

Sunday brunch features such fare as eggs Benedict and Belgian Waffles. Also popular is the seafood buffet served from 5 p.m. to 9 p.m. Monday nights. Lunch specials are all about comfort food, and depending on the day of the week, include Matt’s Famous Meatloaf, red beans and rice and turkey and dressing, reports bar manager Michael Loneman.

Matt Smith, who was general manager of Lakewood Yacht Club for 25 years, is behind the new restaurant.

For information, call 281-334-7445.

Want to rave about a restaurant? Visit Buzz Blog at galvnews.com.

Biz Buzz appears Tuesdays and Thursdays.

Kennedy Wilson Auction Group Featured in THE HOUSTON CHRONICLE

July 25th, 2010

Newspaper Story: Our client, Kennedy Wilson Auction Group was featured  in a news story  about an upcoming Auction in Houston, Texas.

Click Here to read story from PDF or scroll down below

http://www.chron.com/disp/story.mpl/business/sarnoff/7122902.html

Auctions buoy condo sales

Luxury units go up for bidding in Clear Lake, Galveston

By NANCY SARNOFF
HOUSTON CHRONICLE

July 24, 2010, 7:48PM

Developers of luxury condominium projects are increasingly turning to auctions to unload big chunks of units they were unable to sell through usual means.

The owner of 35 condominiums in the Endeavour high-rise on Clear Lake is putting the units up for bid next month at discounts of more than 50 percent over the original prices.

Starting bids will range from $200,000 to $1.5 million on units listed from $450,000 to $3.5 million, according to Wonmore Ltd., which bought 44 units last year for $9.5 million plus past-due taxes, interest and additional costs. The 30-story tower at 4821 NASA Parkway had been put in bankruptcy.

As the real estate market softened, auctions have become a way for developers to move a large number of units at once.

“Sellers typically can sell one or two years’ worth of inventory in a single day,” said Rhett Winchell, president of Kennedy Wilson Auction Group, which is handling an auction for 40 units at Diamond Beach, a luxury resort in Galveston at the western end of the Seawall at 105th Street.

Randall Davis, the Houston-based developer of the project, was encouraged by a recent auction held for 27 units at Palisade Palms, another high-end condo development on the island.

“Buyers got to set their price, and they were reasonably fair for the developer and good for the buyer,” Davis said.

To be sure, discounts at these auctions can be substantial.

Starting bids on the condos at Diamond Beach will range from $140,000 to $375,000 on units previously priced from $360,000 to more than $1 million.

“As the developer, we have to sacrifice on price, but that’s the way it is,” Davis said.

The Diamond Beach auction will take place at 1 p.m. Aug. 22 at the Omni Houston Galleria. Units at Endeavour will be sold on Aug. 21 at the Intercontinental Hotel in Houston.

Skyscraper for sale

Heritage Plaza, the 53-story skyscraper crowned by a Mayan temple andperhaps the most distinctive in the downtown skyline, is on the block.

The property could sell in the high $200 million range, Bernard Branca, a director with CBRE Capital Markets, said recently at a commercial real estate luncheon.

While the commercial property market has been hammered by tight credit, financing is available for the newest or most prominent office properties, Branca added.

Officials from Atlanta-based Goddard Investment Group, which purchased the tower in 2005, were unavailable last week, and an executive from Eastdil Secured, which is said to be marketing the property, would not comment.

Goddard bought the building when downtown vacancies were mounting.

The sale coincided with the building’s largest tenant vacating nearly half of the space in the 1.15-million-square-foot property.

The building, formerly known as Texaco Heritage Plaza, shortened its name after Chevron absorbed Texaco and pulled out of it and other downtown properties.

Another Walmart

Just weeks after discount retail giant Wal-Mart Stores said it may put a new store just outside the Houston Heights, the Bentonville, Ark.-based company has opened up about plans for another location a few miles west. Within the next 60 days, construction should start on an 185,000-square-foot Supercenter north of Interstate 10 just outside West Loop 610.

The site is along Silber, behind the Marq*E Entertainment Center.

The new store, which will have a full line of groceries and general merchandise and should open in the fall of 2011, doesn’t preclude Wal-Mart from pursuing its plan to build what would be the retailer’s most urban location in the Houston area.

The company said it’s still working out the details on a proposed store south of Interstate 10 near the northwest intersection of Yale and Center streets.

“We are actively pursuing bringing a store to our customers near I-10 and Yale,” Daniel Morales, a Wal-Mart spokesman, said in a prepared statement.

“Customers living in that part of the city want more affordable options for grocery, and we want to be part of the solution.”

A development site plan recently obtained by the Houston Chronicle shows a 152,015-square-foot Walmart flanked by a parking lot for 664 cars and additional retail spaces for a bank, fast-food restaurant and other stores.

nancy.sarnoff@chron.com

Sarnoff’s real estate blog is at blogs.chron.com/primeproperty.

Kennedy Wilson Auction Group Featured in THE GALVESTON COUNTY NEWS

July 23rd, 2010

Newspaper Story: Our client, Kennedy Wilson Auction Group was featured  in a news story  about an upcoming Auction in Houston, Texas.
Mast1

Laura Elder’s Buzz Blog

July23

DIAMOND BEACH TURNS TO AUCTION

I’m sensing a trend here. Another island developer is turning to auctions in the face of a really stubborn real estate slump. Everyone agrees buyers are looking on the island, but they’re prowling for bargains.

The latest to turn to the gavel is Randall Davis, developer of Diamond Beach, a 117-unit mid-rise resort and spa under way on 8.5 acres at the seawall’s western edge. The pale pink project came online last summer. Davis hopes to sell 40-beachfront condominiums at the Aug. 22 auction. Starting bids are $140,000. Click here for auction information.

Last month, more than 600 people attended an auction of 27 units at East Beach development Palisade Palms. Buyers snapped up all the units, auctioneers reported.

Then, West End development Beachside Village, earlier this month held an auction for 29 home sites and commercial properties. No official word on whether that auction was a success.

A cascading pool runs nearly the width of Diamond Beach, a mid-rise condominium resort and spa in Galveston. Photo by Jennifer Reynolds.

All these posh developments came online just before or right after Hurricane Ike and the market dive.

Palisade Palms saw auctions as the best possible solution to a difficult market. Many residents were struggling to restructure financing to meet obligations, according to a May 6 letter from the project’s developer to condominium owners. Some sought to rent their units, while others decided to sell.

“Contrary to the conventional wisdom circulating at Palisade Palms, we believe this issue, in varying degrees, is affecting most residents; primary residents, secondary residents, as well as people who may be considered ‘an investor,’” Richard Anderson, a principal in Falcon Group, which developed Palisade Palms.

In the letter, Anderson echoed the sentiment of a lot of real estate industry observers. Buyers are out there, but they holding out for price drops.

“Our internal assessment has concluded that while where are currently many prospective purchasers in the Galveston marketplace, at this time they are unwilling to purchase a unit because of a lack of confidence in determining the actual market value,” Anderson said. “In other words, many sales have stalled while prospective purchasers wait to see if the prices will drop further before they will actually move forward with a purchase.”

Palisade Palms and other developers see the auctions as a way to reduce market supply on the island while buoying up property values at their projects.

What do you think? Are auctions the right way to go?

Star Navigation Systems Group Inc Featured in THE INTERNATIONAL HERALD TRIBUNE (GLOBAL EDITION OF THE NEW YORK TIMES)

July 23rd, 2010

Newspaper Story: Our clients Viraf Kapadia, Chairman and CEO of Star Navigation Systems Group Inc  and Dale Sparks, Chief Technology Officer discussed the In Flight Safety Monitoring System (ISMS) and air safety.

Click Here to Read Story From PDF

http://www.nytimes.com/2010/07/22/business/global/22blackbox.html?pagewanted=2&sq=viraf%20kapadia&st=cse&scp=1

Crash Spurs Interest in Real-Time Flight Data

By NICOLA CLARK
Published: July 21, 2010

FARNBOROUGH, ENGLAND — In the year since the fatal, still-unexplained crash of a French airliner over the mid-Atlantic, interest has intensified in technologies to enhance the tracking of aircraft over remote areas and enable real-time transmission of the information contained in a plane’s “black box” flight recorders.

European Pressphoto Agency

Air France Flight 447 disappeared on June 1, 2009, en route to Paris from Rio de Janeiro with 228 passengers and crew members on board, but its flight data recorder and cockpit voice recorder were never found.

Until recently, the main obstacle has been not technological but financial — the high cost of transmitting so much data from so many planes, nonstop.

But the failure to locate the wreckage of Air France Flight 447 — which disappeared on June 1, 2009, en route to Paris from Rio de Janeiro with 228 passengers and crew members on board — has prompted a number of initiatives involving manufacturers and regulators to devise new systems. Several companies also are actively marketing products to stream black-box and other aircraft data using satellites and the Internet, but selectively, so as to reduce the expensive bandwidth required.

“The momentum for a real-time solution is significant and ramping up,” said Dale Sparks, chief technology officer of Star Navigation, a start-up based in Toronto that has patented what it calls a “next-generation black box” and recently signed a technology-sharing agreement with Astrium, the space and satellite division of European Aeronautic Defense & Space. Mr. Sparks said the company’s system could detect the earliest signs of potential problems while an aircraft was still in flight and automatically transmit an alert to staff members on the ground via an e-mail or text message.

Matt Bradley, vice president of business development at AeroMechanical Services, or AMS, based in Calgary, Canada, said the Air France crash “has clearly increased awareness of the vulnerability” of aircraft that fly over oceans or remote areas, including polar ice caps.

“The thought that an aircraft could go missing for six hours without air traffic control on either side of the Atlantic noticing — the public was clearly shocked by that,” Mr. Bradley said.

AMS teamed up last year with L-3 Communications, the largest maker of flight recorders, to promote its system, which uses the global Iridium satellite network to send in-flight data to ground stations. The company said its technology was currently installed on more than 200 planes with 25 different operators, including airlines, business jet and military customers.

Both Star and AMS have come to this year’s Farnborough International Airshow, one of the world’s largest aviation bazaars, to exhibit their wares, which have been in development for nearly a decade. With a number of air accident investigators and safety experts now urging that some form of in-flight data transmission be mandated internationally, these companies and others are positioning themselves for a potentially lucrative market.

“People absolutely smell money here,” said William R. Voss, president of the Flight Safety Foundation in Alexandria, Virginia. “This is not rocket science.”

The hardware itself sells for around $50,000 to $70,000 per plane, compared with $10,000 to $20,000 for a conventional black box. But for airlines, he noted, “the real cost is not the system but the phone bill.”

The sheer volume of data contained in a plane’s two black boxes — the flight data recorder, which contains 25 hours of information on the plane’s position, speed, altitude and heading; and the cockpit voice recorder, which contains the final two hours of cockpit audio — requires enormous amounts of bandwidth to transmit. The cost to send that data via satellite can be $3 to $5 a minute.

For major airlines with hundreds of planes in their fleets, real-time streaming of flight data from takeoff to landing would cost in the hundreds of millions of dollars annually, some industry executives estimate.

“Cost was an issue if the original plan was to download as much information as possible,” said Mr. Sparks of Star Navigation.

But providers are seeking to reduce the expense by allowing the airline to define which information they wish to monitor and how frequently they want it transmitted during a flight. Both the AMS and Star Navigation systems are programmed to automatically switch to live streaming after an incident or anomaly is detected during flight, and pilots can also activate it manually.

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“It just needs to be able to sit as a sentinel waiting for these alerts and to be able to transmit the data when it’s needed,” said Mr. Bradley of AMS. “You only pay when data are transmitted.”

The companies emphasize that their technology also monitors systems that traditional black boxes do not, like the onboard power supply, engine and hydraulics functions. They can also keep tabs on the flight profile to optimize fuel consumption and reduce emissions, predict possible repairs and even schedule maintenance. Viraf Kapadia, chief executive of Star Navigation, said his company’s product usually paid for itself within a year of installation.

Air accident experts say access to real-time flight data could have gone a long way toward solving the mystery of what happened to Flight 447, an Airbus A330 that went down in heavy thunderstorms more than 600 miles, or 970 kilometers, off northern Brazil. French investigators have scoured roughly 1,200 square miles, or 3,100 square kilometers, of seabed — at a cost of nearly $40 million — but the black boxes and the bulk of the wreckage have never been found.

Without the flight recorders, investigators have said it may never be possible to determine the definitive cause of the disaster. So far, the main source of information about what happened is a series of maintenance messages sent using the plane’s Aircraft Communications Addressing and Reporting System, or Acars, a digital link used for sending simple text messages via radio or satellite.

But Acars does not have the bandwidth needed for sending flight data or cockpit audio files.

“Clearly it’s a good idea to have more data than we did in the Air France case,” said Mr. Voss of the Flight Safety Foundation. “These technologies hold real promise. The caution will be to keep the requirements realistic.”

The European Commission and the International Civil Aviation Organization have each established task forces to study in-flight streaming technologies alongside other ideas for improving recovery of black boxes from a crash, including enhancing the power and battery life of the boxes’ audio beacons, or “pingers,” and flight recorders that eject on impact with water and float on the surface.

The European project, known as Optimi, is conducting trials of in-flight data streaming over several zones across the North and South Atlantic Oceans this summer on several planes operated by Airbus, Air France and Air Europa. Results of those tests will be included in a set of recommendations the group plans to submit to the E.U. transport commissioner, Siim Kallas, by the end of this year.

The I.C.A.O., an arm of the United Nations, also plans to issue its own recommendations in the autumn.

Airlines, meanwhile, are cautious about absorbing significant new costs to address the very rare cases when a plane’s black boxes cannot be found. According to the International Air Transport Association, there have been only 11 cases in the past 35 years where flight data recorders were never recovered.

“Individual airlines are struggling for their financial survival right now,” said Mr. Bradley of AMS, making investments in technology that is not currently required “a secondary concern.”

That is especially so in parts of the world where aircraft often are not even equipped with the most basic safety equipment. “If you had a dollar to spend on safety in certain developing countries, this would be the last thing you’d spend it on,” said Mr. Voss.

Bruce Coffey, president of L-3’s aviation recorders division, said the early adopters tended to be smaller carriers and business-jet operators that faced less of an initial investment than major airlines with large fleets.

But carriers that now use data-streaming say they are convinced the technology will win more converts over time.

“There have been many quantum leaps in aviation safety over the years, and this stands out to be the next one,” said Paul Sterbenz, vice president of strategic development at North American Airlines, which operates charter services for the U.S. military and other government agencies. North American, based in Jamaica, New York, installed AMS’s data-streaming system on its fleet of 10 Boeing 757 and 767 jets in 2008.

“I believe it will eventually become standard,” he said.

An Australian scientist credited with inventing the flight data recorder to help investigate aircraft accidents has died at the age of 85, military officials said Wednesday, Reuters reported from Canberra.

David Warren, a research scientist at the Aeronautical Research Laboratories in Melbourne, came up with the idea of a crash- and fire-proof machine to record the crew’s voices and instrument readings after helping to investigate the mysterious crash of the world’s first jet airliner, the Comet, in 1953.

Mr. Warren designed and built a prototype in 1956, but it took five years before the value and practicality of his invention was realized.

Fast Track To Cash Flow interviewed on CKFR AM 1150 KELOWNA, BC

July 22nd, 2010

Radio Interview: Our client, Darren Weeks, Founder and CEO of Fast Track To Cash Flow discussed what your kids need to know about money at an early age.

Click Here To Listen

Fast Track To Cash Flow Appeared on CTV NEWS EDMONTON

July 20th, 2010

TV Interview: Our client, Darren Weeks, Founder and CEO of Fast Track To Cash Flow discussed what your kids need to know about money at an early age.

Leasebusters Appeared on CITY TV BREAKFAST TELEVISION TORONTO

July 15th, 2010

TV Interview: Our client Jim Matthews, General Manager of Leasebusters appeared on CITY TV’s BREAKFAST TELEVISION  and discussed getting in and out of Leases.

Breakfasttv

Kennedy Wilson Auction Group Featured in THE DAILY BREEZE

July 10th, 2010

Newspaper Story Our client, Kennedy Wilson Auction Group was featured in a news story about an upcoming auction in  Rolling Hills, California.

Click Here To Read Story from PDF or scroll below

SOUTH BAY CONFIDENTIAL: How Many Pieces of Silver for That Condo?

By Dave Fratello

Condos! Condos!

Come and get your cheap condos!

That’s roughly the pitch for 18 newly built units in Rolling Hills Estates headed for auction Sunday.

The Silver Spur Court condo project flopped when it was brought to market a couple of years ago. At the time, the units were offered for prices ranging from $930,000 to $1.7 million.

Now, the auction’s come-on prices average one-third of those long-forgotten start prices. For instance, unit 8, known also as 975 Silver Spur Road, first hit the market at $1,255,000. The auction price is $395,000, or 69 percent off that stratospheric beginning.

Whether or not you can actually get these condos for those giant discounts, there’s still something attractive and different about the complex that’s driving interest in the properties now. The Spanish-style building, launched as an ambitious luxury development four years ago, features lots of open, common outdoor spaces, including a large terracotta-tiled courtyard, grand staircases and another lushly landscaped area that feels like a private yard off a few of the units.

Every unit is different, though they share design elements: dark-stained hardwood floors, modern kitchens, snazzy fixtures, spacious rooms.

They’ll tell you that each unit cost $1 million or more to build, when considering land and construction costs.

But buyers stopped short of paying $1 million or more. In fact, none sold. It’s understandable.

For one thing, the real estate bubble popped between the green-lighting of this project in 2004 and the first time the condos were offered for sale in mid-2008.Moreover, dense development is something new for the area. Single-family homes are the norm in Rolling Hills Estates and surrounding communities, not tight-knit condo complexes.

And the location for the new condos, at the corner of Crenshaw and Silver Spur, means that traffic is noticeable from several units. The site, formerly home to a McDonalds, also backs up to a large post office building.

Why build condos here, then? The Silver Spur Court development is part of the original “Peninsula Village” plan to turn the immediate area into a “European-style village” that combines shops and residences. (A series of mini-malls joins a full-blown mall a few blocks down the road.) Though the massive plan has been scaled back, a few residential projects remain.

Back in September 2006, when the Silver Spur project first broke ground, one of the developers told the Palos Verdes Peninsula News, “We think it’s going to be kind of a landmark for Rolling Hills Estates.”

It probably didn’t occur to anyone that every unit would fail to sell and would head to auction instead.

It’s too bad to see such a strike against this sort of infill development. Moving some “smart growth” up the hill is an innovative concept. You could see some empty-nesters or young professionals loving the urban groove if it develops fully over time. But this project was timed terribly, launching late, building slowly and finishing up during a real estate crash.

The big question is: What are these condos worth today?

On Sunday, we’ll find out. There are plenty of registered buyers. The sellers have set minimum (“reserve”) prices for the condos that are likely above those start prices – we don’t know, as the reserve prices are known only to the auctioneers. But if auction buyers go above those minimums, we’ll finally see the first sales at Silver Spur Court, and the first residents in the months to come.

I’ll report back next week after we see what goes down.

Dave Fratello is a Manhattan Beach resident who writes the www.sbconfidential.com. and www.mbconfidential.com real estate blogs. He can be reached at mbwatcher@gmail.com.

WANT TO GO?

SUNDAY AUCTION: The auction is

4 p.m. Sunday at the Manhattan Beach Marriott (a change in venue from earlier announcements). The auctioneers, from the Kennedy Wilson Auction Group based in Beverly Hills, suggest arriving by 3 p.m. But plan to come much earlier if you’re not yet registered.

VIEWING THE CONDOS: If you’re interested, today, up until 6 p.m., is your last chance to check out the properties in person. You can also pre-register as an auction buyer at the condos today.

DIRECTIONS: Take Crenshaw Boulevard up The Hill from Pacific Coast Highway, past Chadwick School, to the first light at Silver Spur Court, and take a right. Make a U-turn into the underground parking structure.

CAVEAT EMPTOR: Potential buyers should know two things:

1) Units may not sell if the minimum (“reserve”) price is not met – that figure is not published, and known only to the auctioneer.

2) Each buyer must pay a $11,885-per-unit parks fee before close of escrow.

For more on the auction, see: www.SilverSpurCourtAuction.com.


Kennedy Wilson Auction Group Featured in THE DAILY BREEZE

July 7th, 2010

Newspaper Story Our client, Kennedy Wilson Auction Group was featured in a news story about an upcoming auction in  Rolling Hills, California.

Click Here To Read Story from PDF or scroll down below

Luxury Rolling Hills Estates condos go on the auction block

By Melissa Pamer Staff Writer

Silver Spur Court,a luxury condo complex in Rolling Hills Estates, was in the forefront of the city’s expected redevelopment in its downtown area. However, none of the units has sold and they are now going to auction. (Steve McCrank/Staff Photographer)

A luxury condominium development, once heralded as a forerunner of an anticipated surge of dense residential projects in the commercial core of the Palos Verdes Peninsula, is now on the auction block.

More than a year after Silver Spur Court was completed at the edge of Rolling Hills Estates’ “downtown,” and nearly four years after city leaders and developers toasted each other at a groundbreaking ceremony, the 18-unit building will be put before bidders at an auction on Sunday.

That’s because none of the condos has sold.

Starting bids on some of the larger units are about $800,000 less than the initial asking price, though the price tag will undoubtedly rise quickly during the auction process.

“We’re going to be selling these properties for way below the construction cost,” said Rhett Winchell, president of Kennedy Wilson Auction Group, the Beverly Hills company that is holding the event.

The developers of Silver Spur Court began their project – which earned approval from Rolling Hills Estates in 2004 – as the real estate market was amid a delirious climb. Then housing values tanked and interest waned in $1 million townhouses where a McDonald’s once stood at the busy intersection of Silver Spur Road and Crenshaw Boulevard.

“Like most builders, they anticipated the market prices when they started the project, and ultimately the market changed on them,” Winchell said. “The asking prices – that probably also hindered some

of their success. Now with the auction itself, we can ultimately sell them for less.”Originally priced from $930,000 to $1.7 million, the high-end units at Silver Spur Court are centered around two open courtyards on four-fifths of an acre. They’re two- and three-bedroom flats and townhomes, ranging from 1,600 square feet to about 2,800 square feet.

Starting bids now range from $275,000 to $495,000. A Rolling Hills Estates city official said buyers need to be forewarned about a $11,885 per-unit city parks fee that must be paid before escrow can close.

The Spanish Colonial Revival-styled project was designed by architect Stefanos Polyzoides – a major proponent of a movement to create walkable, mixed-use urban developments.

Along with Rolling Hills Villas, a nearby 41-unit condo development catering to seniors, Silver Spur Court was welcomed by local leaders as the vanguard of a plan to bring vitality to a dowdy business district by infusing it with residential life.

Five projects with a total of 208 units have been approved along Deep Valley Drive and Silver Spur Road, but only Silver Spur Court and Rolling Hills Villas are complete. Another project with 148 units is going through an environmental review after its initial developer went into bankruptcy.

In 2007, under pressure from residents concerned about parking and traffic, the Rolling Hills Estates City Council rejected a broad plan for mixed-use development of the “Peninsula Village.” It had offered a major departure for the equestrian-friendly bedroom community, frightening some residents and local business owners.

City Councilman Frank Zerunyan said the acrimony related to the plan was overblown.

“I never believed that we were going to put on the marketplace – in Silver Spur Court or elsewhere – several hundred units in our community,” Zerunyan said. “I never thought that market would permit such a thing. … It’s going to take years for the area to develop. The absorption rate is impossible.”

Residential projects were either already approved or won council backing because they fit within existing codes that allow 22 units per acre in the commercial zone.

“I think the vision was definitely endorsed in terms of allowing the area to rehab itself,” said David Wahba, the city’s planning director. “Unfortunately, it hasn’t had an opportunity to take off. Once a number of these projects are built, we’ll be better able to gauge how the residential will be received.”

Last year, in light of national economic woes that have brought residential development to a halt, the City Council gave developers an extension on their building permits, Wahba said.

That’s been a boon to Rolling Hills Villas owner Wynne Development Co., which has plans for a 75-unit luxury project known as Mediterranean Village that was approved in 2008 and is still awaiting financing.

Brian Wynne, the project manager for Rolling Hills Villas, said 10 or fewer units remain for sale. He said catering to a niche market – owners must be 55 and over – has helped the project attract potential buyers during a difficult climate.

Promotion of the auction for Silver Spur Court has drawn interest in Rolling Hills Villas, Wynne said. Real estate developers and agents on The Hill are closely observing the fate of the project, he added.

“We’re just like everybody else, curious and watching,” Wynne said.

Winchell, from the auction group, said his company has received a lot of interest in the Silver Spur Court units. Last weekend, more than 100 potential buyers showed up at a how-to-bid event.

Kennedy Wilson was called in because the owners were hoping to sell out the inventory in one day, Winchell said. He would not say if there was a minimum goal price for individual units – a source of speculation for local real estate professionals.

“I can’t say there’s an exact number,” Winchell said.

The development had difficulty selling because of a stringent requirement from mortgage giant Fannie Mae that 51 percent of condo units be in escrow before buyers’ loans would be guaranteed, Winchell said.

Others on the Palos Verdes Peninsula pointed to problems with the project’s financing. Construction was funded with a loan from Corus Bank, the Chicago lender that was taken over by the federal government last year, throwing another client, Terranea Resort in Rancho Palos Verdes, into financial difficulty.

Several lawsuits against the developers were dismissed earlier this year, court records show.

Representatives of development partner Concert Realty and other partners did not return calls for comment. Winchell said he spoke on behalf of the developers.

Zerunyan, a lawyer who works in real estate development, said he believes Silver Spur Court may have had a fatal flaw from the beginning.

“I believe these folks built on a basis of a dream more so than on the basis of a marketplace,” said Zerunyan, who stressed that he appreciated having a high-quality project in his city.

“It’s not the right product for this community. It’s a gorgeous, absolutely magnificent property as far as the amenities are concerned, and the products that are used are top notch. But you’ve got to go with the marketplace.”

melissa.pamer@dailybreeze.com

Find out more

What: Silver Spur Court’s 18 luxury condominiums will be auctioned to registered bidders.

When: 4 p.m. Sunday; bidders must register by 6 p.m. Thursday

Where: Manhattan Beach Marriott, 1400 Parkview Ave., Manhattan Beach

Info: silverspurcourtauction.com