New bank brings momentum to Orlando

Beth Kassab | Business Columnist

February 18, 2008

On the 10th floor of the American Momentum Bank tower (also known as Capital Plaza II, overlooking Lake Eola), nearly 200 movers and shakers gathered in the bank's new executive offices last week for drinks and hors d'oeuvres to welcome the business to town.

Fittingly, the unstated theme of the evening was dollar signs. They were visible everywhere you looked -- and I'm not talking about the greenbacks in the vault.

No, this bank has set itself apart with its who's who board of directors and its record-setting startup capital of $100 million, most of which came from founder and Texas tycoon Donald Adam.

At one point during the evening, a well-known local shaker leaned over to me and wryly observed, "There's a lot of money in this room."

You can say that again.

In addition to Adam, who sold his Texas-based bank chain to Citigroup in 2005 before starting American Momentum in Tampa, there was a host of other wealth on hand for the event.

The board of directors includes, among others: Jim Pugh, chairman of Epoch Properties and one of Orlando's most well-known philanthropists; retired U.S. Sen. Connie Mack, R-Fla.; Dick Batchelor, a local consultant and former Democratic legislator; and Mel Sembler, a Tampa builder and former U.S. ambassador.

Eric Waldron, a former SunTrust executive and a former chief executive of Riverside Bank, is in charge of American Momentum's Orlando-area branches. He said the bank, which is attempting to offer big-bank services with a community-bank feel, will target municipalities, corporations, not-for-profits, and real estate developers as clients.

"I think our timing is perfect," Waldron said of the 15-month-old bank, which is coming into the marketplace just as economic conditions are forcing already stretched big banks to give up business from good borrowers.

And with the capital behind this bank, it can afford to give out the big loans others are denying.

"We have the funds behind us to make major loans up to $25 million," he said. "That's unusual for a community bank."


Deluxe apartments in the sky

Just over six months ago, I wrote about how the struggling condo market had produced an oversupply of penthouses in downtown Orlando.

It's a small slice of the overall market, but significant nonetheless because of the multimillion-dollar prices developers were originally hoping to get for those rooftop units.

At the International Builders' Show last week, I asked some developers what they thought would happen to the deluxe condos in the sky.

"I predict that you're going to see a lot of penthouses with stereos and mattresses on the floor, because it's going to be some of the best buys in town," said ZOM Development chief executive Steve Patterson.

The penthouses, many of them outfitted with features like wet bars, high-end kitchen appliances, even remote-controlled bathtubs, are selling for less than anticipated.

At 55 West, which recently went through foreclosure, the new developer was even considering alternative uses or configurations for the penthouses, which originally were on the market for about $2.7 million each.

Patterson, who is developing the Paramount, a condo tower with a Publix on the ground floor that's expected to be complete this summer, said penthouses will likely "represent some of the best values in the market" for a while.

"I'm already starting to see some of those trade here in Orlando, in particular," he said. "We definitely were guilty of probably over-building the market to some degree."

Candice's Notes: This weekend I spoke with a gentleman who is a Commerical Loan banker and he said as much as media claims this market is not stable, loan applications suggest otherwise. The best time to buy is now.