Cullis Buys Matanzas Golf Course Mortgage

Golf Group of Palm Coast got their final payment for its sale of Matanzas Golf Course, but the money came from developer Jim Cullis, who bought the past-due balloon mortgage.

Palm Coast, FL – February 16, 2015 – Matanzas Land LLC, owned by Palm Coast developer, Jim Cullis, has purchased the past-due mortgage for the Matanzas Golf Course. Jacksonville-based Group Golf of Palm Coast purchased the course in October. The $266,750 Matanzas sale was structured with a $100,000 cash payment and a balloon mortgage for $166,750. The balloon, due December 10th, has not been paid. Cullis purchased the note at a slight discount from face value from Palm Coast-based Golf Group of Palm Coast on January 30th.

[The names are confusing. Group Golf of Palm Coast bought the course from Golf Group of Palm Coast.]

What does it mean? It means that Golf Group of Palm Coast is out of the Matanzas picture. By accepting Cullis’s payment, they assigned their remaining interest (the mortgage) to him. Group Golf still owns the property, having purchased it from Golf Group in a sale that closed October 3rd. The mortgage purchased by Cullis remains as an encumbrance against the property.

Cullis, who once had the course under contract for an undisclosed amount, faces two possible outcomes. If Group Golf pays off the mortgage, Cullis will receive the face value of the note, $166,750, plus interest accruing at 15%. Not bad by today’s standards.

On the other hand, if Group Golf fails to pay the balance, Cullis can foreclose and possibly get title to the property at foreclosure. Or a third party might outbid Cullis at the foreclosure auction. If so, Cullis collects the face amount of the mortgage plus accrued interest. If there are no other bidders, Cullis will end up with the course.

The assignment was apparently a good deal for both Cullis and Golf Group. Cullis ends up sitting on a promising investment with a healthy return or he ends up owning the Matanzas golf course through foreclosure at an attractive price. Meanwhile, cash strapped Golf Group gets a much-needed cash infusion.

Golf Group continues to operate the Cypress Course while leasing the Pines Course (with an option to purchase) to a third party. The Pines Course operators are not moving forward with their option to buy at this time. Both courses are reportedly having trouble meeting membership goals.

11 replies
  1. Groot
    Groot says:

    Thanks and more.

    Toby, thanks for doing the legwork on this and putting it together. A note about Pine and Cypress. We used to be regulars at those two courses. Since it all broke with a potential Matanzas sale to Mr Cullis, we stopped playing golf at both courses. A lot of us up here did the same and that could be why they cannot meet membership goals. We started traveling north or south to play golf out of Flagler County or at Grand Reserve. We will continue to do so. I sincerely hope Henry Angle and crew have to file bankruptcy. As for the Matanzas course, it just shows the lack of concern that local government and investors have for us up in the L section and that needs to change. We are not a dumping ground to be used, abused and monopolized on.

  2. Robert McKenna
    Robert McKenna says:

    retired

    A class action lawsuit is in process againt the City of Palm Coast, do to meetings with the Mayor & city manager not getting anywhere & the city manager in favor of building more homes in the L section, the residents will not stand for Jim Cullis using the L section golf course to build more homes as property values have not kept pace with the rest of the area. Zoning was changed with the residents un aware of the politics behind closed doors, Mr. Cullis may think he pulled a fast one along with city manager, time will tell what the attorney finds out.

  3. George Edward Chuddy
    George Edward Chuddy says:

    Please have pity on us

    @Mr. McKenna – Please add me / us – Palm Coast Pioneers and early purchasers, please. Many say that all this is also Elder Abuse – exploitation of the Elderly – I / others can’t afford litigation being old and poor. This has all been horrorific – We had been living with threats and adversity; so horrible that I had to ask for ‘Sanctuary’ protection from the White House of the United States. How sad it that indeed ! Things seemed to settle down thereafter, but, the continued stress on our Mom accelerated and hastened her death. Tho’ old , wheelshair bound, heart condition she constantly worried ‘…they said they are going to take my house away..’…’…will they be able to take my house away…?’ ‘…I’ve been law abiding – will the city of palm coast protect me…?…

    I/we paid for that Levitt I.T.T. Developer pledged Amenity; later when we brought in the Special Investigative Units of the United States Department of Justice it ( Matanzas Woods Golf Course ) was clearly listed , in detail, in the Federally ORDERED ‘ 15 Year Compliance Report ‘. The Matanzas Woods Golf Course was one of MANY named and identified Federally Ordered ‘Recreational Areas’.
    For those interested you can read it at the Federal Trade Commissions’ Website under F.T.C. Docket C-2854 – within the MASSIVE File of ‘ 15 yr. Compliance ‘ – in Federal Exhibit ‘B’.
    …and the hacking up of the Palm Harbor Golf Course – Recreational Acreage I/we paid for and also within a FEDERAL Order was changed from Recreational acreage to Housing…and the list goes on and on.
    Please Mr. McKenna add me/us – Thank you very much, truly ‘ Thank You ‘.

  4. Groot
    Groot says:

    Cullis foreclosed on the course.

    Cullis foreclosed on the course. On 2/25/15 Cullis foreclosed on the course. The name of the course owners, Golf Group of Palm Coast Jacksonville, was changed to Group Golf of Palm Coast. The Lis Pendens was initiated by Matanzas Land LLC which is James Cullis

  5. Groot
    Groot says:

    Matt

    Matt is not my buddy. By the way, Arnold Palmer Golf was interested in buying the course. They contacted me and I forwarded their email to Mr Angle. Then out of nowhere in walks Matt. I never received any feedback from Mr Angle. I’m just a resident concerned about property values. I have a theory about what Matt was really doing but here is not the place for it.

  6. Brad West
    Brad West says:

    Great News

    Very good to hear. This is good news for Matanzas Woods. Jim is a great person and O am confident he will bring some much needed positive opportunities to Matanzas Woods.

  7. Jr
    Jr says:

    just listen

    Groot, have you stopped to think that maybe your conspiracy theories are actually hurting your “cause.” Matt was not a frontman for anything. Palmer design wanted the property? They don’t want to buy it! Palmer wants to be paid to do the redesign by whoever owns it! GUARANTEED! My roots run deep in the golf industry and Flagler County. As much as I hate to say it…I agree with the former Palm Harbor GM. Palm Coast does not need another golf course. Not because anyone is scared of competition, but because there is not enough demand to meet the supply! Business 101! The money that it would cost to renovate Matanzas is astronomical! Anyone who says other wise has no agronomic back ground! A nine hole course may work. The problem is that there is not an easy nine at Matanzas to rehab! One side of Lakeview has 8 holes and the other has 11. The irrigation source sits on the side with 8! I live not far from the course…a park would help this side of town! If Cullis were to build homes it would be on the previously planned area behind the driving range! He would not be able to sell lots the are stacked behind other houses! Plus I am sure that he doesn’t want to build more roads and run sewer lines! All that I ask is that you think logical and put your ego and conspiracy theories to rest!

  8. Groot
    Groot says:

    Frankly

    Frankly Jr whoever you are are and I do not know you. I don’t give a rats patootie. At this point, I only care about what will increase the value of my home. My home is for sale.

  9. Jr.
    Jr. says:

    best of luck Groot!

    Groot, I sincerely wish you the best of luck! I hope something is done at Matanzas that helps you regain your property value! I will miss your posts and the banter that they created! Agree or disagree with what you had to say…you always made for a great debate!

  10. Curious
    Curious says:

    Matt Richardson

    Matt Richardson, Co owner of Group Golf is a liar and a can artist. He waited till the last minute to clean up MWGC, he hired 1 man to mow 277 acres…he of course told the guy it was only 80 acres and would take 5 days to mow. Poor man is still mowing after 2 weeks, Matt continues to tell tractor guy he will pay him, but all he has given him is gas $. I have personally talked to this nice man and he has been out here rain or shine mowing for pretty much nothing. Matt hasn’t even had the decenticiy to come out and check the progress…..Matt you need to pay this man for his hard work, it’s not his problem you let this property get so overgrown, you want him to care about your problems what about his family. Karma is a bitch…

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