Teardown Home in Rosemary Beach

[Smiling JOe]

Has anyone else noticed the $7.88 Million, 4500sf (built in 2001 and sold in June 2007) home in Rosemary, which was torn down last week? I guess it wasn't to their liking. Not to worry about the home owners though. They purchased another home located two lots away for close to $3million, so that they will have a place to live while they complete a new $3 million home on the tear-down lot.

At this point, I would normally ask Shelly for comments, but I can guess his reaction: a fool and his money are soon parted.

RiverOtter, you need to get in tight with those homeboys of yours.

[RB]

I heard they were going to tear it down but i didn't believe it. i figured it was just more urban legend. WOW

[slandmarks]

http://www.wjhg.com/home/headlines/12483826.html



Multi-Million Dollar House Being Torn Down



--------------------------------------------------------------------------------

Here's a story that might blow your mind. A Tennessee millionaire is demolishing the 7-point-8 million dollar south Walton County home he just bought in June.

Heavy equipment began tearing down a home in Rosemary Beach a couple of days ago. The house is owned by Lyle Finley, a Chattanooga businessman, and one of the foremost art collectors in the country.

In June, he paid 7-point-8 million for the house. But neighbors tells us there was an issue with mold. Apparently Finley decided against mold removal, and is demolishing the house instead.

The house was only 6-years old.

No word on what he plans to build in it's place.

[Bobby J]

Wow!

[Smiling JOe]

From what I hear, the new home will be much larger than the original home. They did salvage the mahogany doors and wooden windows, appliances, and counters, but most everything else was torn down.

[scooterbug44]

I would have had an inspection to find out if there WAS mold before plunking down 7.8 million, but I can understand why they would want to just tear down a moldy house.

Good for the local economy if they rebuild bigger .

[Smiling JOe]

Word on the street is that the rebuild will be paid in cash.

[SWGB]

From what I hear, the new home will be much larger than the original home. They did salvage the mahogany doors and wooden windows, appliances, and counters, but most everything else was torn down.

Watch the video of the tear down, looks to me like the windows were intact when they were tearing it down. Of course if you can afford to tear down a 7.8 million house (I know the lot price was included in that) then you're probably not too worried about a few windows and doors.

Word on the street is that the rebuild will be paid in cash.

Most likely, apparently the owner is one of the largest private art collectors in the US/World?

[scooterbug44]

They can't reuse the old exterior doors and windows because they wouldn't meet the current building code.

[JUL]

Watch the video of the tear down, looks to me like the windows were intact when they were tearing it down. Of course if you can afford to tear down a 7.8 million house (I know the lot price was included in that) then you're probably not too worried about a few windows and doors.



Most likely, apparently the owner is one of the largest private art collectors in the US/World?

I wonder what he would pay for may art?

[JUL]

Does anyone have any pics of the the house they demolished or know which lawn it is near....I thought I had heard some talk a while back when the purchase was made about the high dollar amount.

[NotnKansas]

If he paid that much for a house in Rosemary, you have to remember that the lot is probably worth a bit more then the house :) I also heard that the house had mold issues.

[LightWorker]

Tennessee Alumnus

[Smiling JOe]

They can't reuse the old exterior doors and windows because they wouldn't meet the current building code.

Depends on where they will be used and the ratings on them. The owner is not keeping those -- he gave them to someone else. While I have seen the video, I am only guessing that they were keeping the 1st floor window which are required to be wood framed.

[Smiling JOe]

JUL, the house is Gulf front, on the east side and facing the main green which is in front of the Inn.

See attachment below for photo. I'm pretty sure that it is the house on the far right in my photo taken summer of '06.

[JUL]

JUL, the house is Gulf front, on the east side and facing the main green which is in front of the Inn.

Just saw the video...not much to see there...Thank you for the update

[Philip_Atlanta]

JUL, the house is Gulf front, on the east side and facing the main green which is in front of the Inn.

See attachment below for photo. I'm pretty sure that it is the house on the far right in my photo taken summer of '06.

Yep it is that house - used to be called Zelman house. The best lot in Rosemary IMO. Original owner paid 900k for the lot way back in '98.

[Philip_Atlanta]

Jeez...looking up this Lyle Finley guy and went on a spending spree relatively recently....

08-26-06 paid 2.75 M for a lot in Paradise by the Sea
03-02-07 paid 2.795M for home in Rosemary
06-15-07 paid 7.8 M for the tear down

This guy must be anti-Shelly... :)

[Beach Runner]

OMG. I think I know that house -- just off Western Green, right?

I also know someone whose house had mold problems. He had to rip out all of the sheetrock to fix it. But he didn't tear down the whole flippin' house. Must be nice to have that kind of dough.

[Bobby J]

Jeez...looking up this Lyle Finley guy and went on a spending spree relatively recently....

08-26-06 paid 2.75 M for a lot in Paradise by the Sea
03-02-07 paid 2.795M for home in Rosemary
06-15-07 paid 7.8 M for the tear down

This guy must be anti-Shelly... :)

There are always two types of buyers: Wealthy and first time home buyers. I think this one is wealthy.

[SWGB]

There are always two types of buyers: Wealthy and first time home buyers. I think this one is wealthy.

Very

[Smiling JOe]

I should add, that the house wasn't really for sale when the buyer bought it, hence the premium paid. I would agree, that it is probably one of the premier lots in Rosemary Beach, at least until a couple more storms hit. Personally, I'd rather have the $2.8 Million home which they are currently using, just three lots north of the tear down.

[SWGB]

I should add, that the house wasn't really for sale when the buyer bought it, hence the premium paid. I would agree, that it is probably one of the premier lots in Rosemary Beach, at least until a couple more storms hit. Personally, I'd rather have the $2.8 Million home which they are currently using, just three lots north of the tear down.

Which may become gulf front after those hurricanes.

[Smiling JOe]

Which may become gulf front after those hurricanes.

Maybe I should have added, "if given a choice only between the two." I like some of the architecture in Rosemary, but the community isn't really my cup of tea. That doesn't mean that it cannot be right for others.

[LightWorker]

I just read this thread again and the entire time I was thinking....
I wonder if this rich man is married.

[SWGB]

I just read this thread again and the entire time I was thinking....
I wonder if this rich man is married.

I think you are the last person on Earth I would have pegged as a possible gold digger.

[LightWorker]

I think you are the last person on Earth I would have pegged as a possible gold digger.

Now that song is in my head.

[SWGB]

Now that song is in my head.

[SHELLY]

Jeez...looking up this Lyle Finley guy and went on a spending spree relatively recently....

08-26-06 paid 2.75 M for a lot in Paradise by the Sea
03-02-07 paid 2.795M for home in Rosemary
06-15-07 paid 7.8 M for the tear down

This guy must be anti-Shelly... :)

Have to admit, this guy really grasps the meaning of the old saying, "You don't see a Brink's Truck in a funeral procession."

The county should build him a monument for keeping the median home price elevated during 2007.


.

[tistheseason]

I just read this thread again and the entire time I was thinking....
I wonder if this rich man is married.

I thought the same thing! I think even my husband would be in favor of me ditching him in favor of this guy. . . .as long as he could visit us in our many houses!!!

[Busta Hustle]

it will be interesting to see if the walton pa considers this an arms lenght transaction and includes it in the assessments for Rosemary...

[Smiling JOe]

it will be interesting to see if the walton pa considers this an arms lenght transaction and includes it in the assessments for Rosemary...

According to the Property Appraiser, he throws out the low and high sales when calculating assessed values.

[JUL]

Maybe I should have added, "if given a choice only between the two." I like some of the architecture in Rosemary, but the community isn't really my cup of tea. That doesn't mean that it cannot be right for others.

I enjoy Rosemary...I like all the footpaths and the boardwalks and the foliage...but what I love is the architechture,the earthy colors,the lawns and of course the Starbucks...love the pumpkin velvet chairs...so comfy.

[JUL]

I just read this thread again and the entire time I was thinking....
I wonder if this rich man is married.

I wonder if he has a girlfriend

[Busta Hustle]

In regards to the pa throwing out high and lows...according to the pa, he does that most ot the time..those little gray areas of assessments and the limited yet subjectivity of the appraisers opinions leaks into the process...in bay county tax payers have revolted to the point of actually winning lower assessments from their review board...not true in walco...makes you wonder how they can be so perfect here...

[Pirate]

Jeez...looking up this Lyle Finley guy and went on a spending spree relatively recently....

08-26-06 paid 2.75 M for a lot in Paradise by the Sea
03-02-07 paid 2.795M for home in Rosemary
06-15-07 paid 7.8 M for the tear down

This guy must be anti-Shelly... :)

What a deal maker.

[Cork On the Ocean]

OMG. I think I know that house -- just off Western Green, right?

I also know someone whose house had mold problems. He had to rip out all of the sheetrock to fix it. But he didn't tear down the whole flippin' house. Must be nice to have that kind of dough.

I forget whether it was Ivan or Dennis but I remember seeing several of the waterfront homes in Rosemary vacuuming water out of their homes after the storm so this doesn't surprise me. I'm sure the mold was from one of the storm surges. I couldn't believe it because of the elevation but inspections before purchasing would be a real good idea.

[BeachSiO2]

I forget whether it was Ivan or Dennis but I remember seeing several of the waterfront homes in Rosemary vacuuming water out of their homes after the storm so this doesn't surprise me. I'm sure the mold was from one of the storm surges. I couldn't believe it because of the elevation but inspections before purchasing would be a real good idea.

I am pretty sure the storm surge only got to about two to four feet higher than the flat beach not 15-20 feet higher so it must have been the associated rain and runoff from adjacent properties.

[scooterbug44]

You don't need a storm surge or runoff to get mold - the climate and building of houses that don't "breathe" makes many a Sowal home a mold factory!

[waterst1]

The mold in this house was mostly from the fact that the windows (nice mahogany windows) had been improperly installed. The leaks below the window sills caused mold that was concealed inside the walls.

[seaside2]

The mold in this house was mostly from the fact that the windows (nice mahogany windows) had been improperly installed. The leaks below the window sills caused mold that was concealed inside the walls.

Does the word "lawsuit" come to mind?

I know the house is over one year old and outside the general contractor's normal one year warranty period, but there is a term called "Latent Defect" that addresses items like this.

'course in this case, the buyer probably doesn't care about minor things like that. He apparently only wanted the lot (and got it!!!!)

[NoHall]

Does the word "lawsuit" come to mind?

I know the house is over one year old and outside the general contractor's normal one year warranty period, but there is a term called "Latent Defect" that addresses items like this.

'course in this case, the buyer probably doesn't care about minor things like that. He apparently only wanted the lot (and got it!!!!)

Even if he did only want the lot (and weren't richer than God) there could still be a lawsuit. I saw it happen several years ago in Atlanta. A huge house (in a tiny neighborhood where I did garden work every week) sold for several million, and soon the marble pool was coming out with a backhoe. Then the rest of the yard was coming out with a backhoe, and extensive work was done to the house--several million dollars' worth of work. If I remember correctly, they ended up spending more on the work than they spent in the original purchase.

Turns out that when the house was built, the builder buried the construction debris. I'm not sure if it was already illegal to do that when that particular house was built, but the new owner sued the pants off the original owner, stating that the original owner knew that the sinkhole from the debris was causing damage to the foundation and had destroyed the pool.

So wouldn't the latent damage and the original owner's knowledge of it come into play?

[seaside2]

Slightly different.

The Owner's knowledge of problems falls under disclosure.

Latent defect goes to the contractor that built the thing or, in the case of larger buildingd, the architect/engineer of record that did the design work.

In either case, you have to let them have the opportunity to correct the damage before you go in and bulldoze the place and make corrections yourselves. Legal process and all that.

[Mango]

Slightly different.

The Owner's knowledge of problems falls under disclosure.

Latent defect goes to the contractor that built the thing or, in the case of larger buildingd, the architect/engineer of record that did the design work.

In either case, you have to let them have the opportunity to correct the damage before you go in and bulldoze the place and make corrections yourselves. Legal process and all that.

I am not so sure about that. I'm dealing with a similar issue and a top notch construction law attorney has been retained by our Association for this and Assoc. affairs. If you have an engineers report and they have experience in court, one can sue at a later point. Don't mark my words, but I believe Florida statute allows up to 10 years and a new law has come into effect that may allow for a longer period of time, which some attorneys are trying in court to see the results. In any event, we have Counsel and he has been involved in the discovery and a future possible lawsuit. Apparently construction defects are rampant along the Gulf. We will be repairing the construction defect ourself because we have no choice, but frankly I'm not placing any hopes whatsoever for any kind of recompense in the future from the builder and subs. Further, even if one does sue and wins, quite often they settle for about 50% or so of the costs incurred and these suits take years.

[NoHall]

Slightly different.

The Owner's knowledge of problems falls under disclosure.

That's true...this was why the new owner sued the original owner. The original owner was a flaming ar$ehole, though--a famous retired football player from back in the day, actually--and the last I heard of the case he was trying to put it off on the builder. Like I said, it was unclear whether the debris was buried before it became unlawful to do so or not, and whether or not the original owner knew that the debris was buried. The new owner sued because he said the original owner had to have known about the damage.

Latent defect goes to the contractor that built the thing or, in the case of larger building, the architect/engineer of record that did the design work.

In either case, you have to let them have the opportunity to correct the damage before you go in and bulldoze the place and make corrections yourselves. Legal process and all that.

I'm not sure how much opportunity was given in this case, but the original owner wasn't about to fix ANYTHING. Jerk...

[SHELLY]

'course in this case, the buyer probably doesn't care about minor things like that. He apparently only wanted the lot (and got it!!!!)

For the life of me, I don't know why folks around here have the notion that high net worth individuals don't give a rat's rectum about wasted money. Sure, there is an assortment of idiots who've stumbled upon/were born into wealth...but for the most part, folks with lots of money worked hard for every dollar and respect the purchasing power of every single one--and they aren't apt to mindlessly toss their money into the fire.


.

[NoHall]

For the life of me, I don't know why folks around here have the notion that high net worth individuals don't give a rat's rectum about wasted money. Sure, there is an assortment of idiots who've stumbled upon/were born into wealth...but for the most part, folks with lots of money worked hard for every dollar and respect the purchasing power of every single one--and they aren't apt to mindlessly toss their money into the fire.


.

Very good point, as always. The wonderful irony of it is that among the "high net worth individuals" around my area, many of them will not mindlessly toss money away and waste it in cases like this. They will get what they pay for and pinch pennies till Abe screams. But they are also gloriously generous. If the football team or the drama program needs a couple million, it's there. The hospital gets a new heart center. Their front gate and their boat docks are always wide open for their friends...

[seaside2]

I am not so sure about that. I'm dealing with a similar issue and a top notch construction law attorney has been retained by our Association for this and Assoc. affairs. If you have an engineers report and they have experience in court, one can sue at a later point. Don't mark my words, but I believe Florida statute allows up to 10 years and a new law has come into effect that may allow for a longer period of time, which some attorneys are trying in court to see the results. In any event, we have Counsel and he has been involved in the discovery and a future possible lawsuit. Apparently construction defects are rampant along the Gulf. We will be repairing the construction defect ourself because we have no choice, but frankly I'm not placing any hopes whatsoever for any kind of recompense in the future from the builder and subs. Further, even if one does sue and wins, quite often they settle for about 50% or so of the costs incurred and these suits take years.

I agree, I should have added "normally" to the front end of the statement. But in the case you cite, if there is written documentation by a professional engineer/architect then that can become the basis for the suit. And laws do vary from state to state, plus you can sue anyone you want any time you can get an attornely to file.

Trouble with winning lawsuits is you don't always win.


For the life of me, I don't know why folks around here have the notion that high net worth individuals don't give a rat's rectum about wasted money. Sure, there is an assortment of idiots who've stumbled upon/were born into wealth...but for the most part, folks with lots of money worked hard for every dollar and respect the purchasing power of every single one--and they aren't apt to mindlessly toss their money into the fire.

Didn't mean to suggest that they have that attitude, it just looks like from a distance that the buyer wanted the lot and was not interested in seeking damages for alleged poor construction. You are right: people that made a lot of money didn't do it by throwing it away. At the same time, given the $ paid and the actions taken, it sure looks like the land was far more valuable to this particular person than an opportunity to file suit.

[SWGB]

Could just be cost/benefit analysis too. From what I was told he was originally going to make the repairs and a few changes. Apparently as things started to mount his architect, engineer, or builder suggested just tearing it down due to the costs associated with repair/remodel. Along these lines he may have considered the cost of repairs vs. the cost and time of retaining a lawyer and then going thru the most likely years of litigation.

[TooFarTampa]

As a hard-core art collector, maybe he also realized he needed special spaces for some of his special pieces, and the light, layout, or whatever, wasn't going to be right either. Hence the need for an entirely new design. I know of people who have designed their entire houses around glass collections. Also any mold problem that was difficult to resolve might make some of the art difficult to insure. Just a guess.