Gates

Here’s the good news: Multi-billionaire Bill Gates may be shopping for waterfront properties in Martin and Palm Beach counties, with $65 million to spend.

Here’s the bad: His peeps are low-balling the pants off sellers.

A wet-behind-the-ears analyst with the Seattle-based Cascade Investment, Gates’ investment arm, signed contracts on three luxury cribs on Jupiter Island and two in the Town of Palm Beach over the past two months. A real estate source said he brandished papers showing the availability of a $65 million line-of-credit.

The youngster, Justin Hance, 25, claims to be with the firm Front Range Investment in some cases and Lake Clarke Holdings in others.

But here’s the Fact: Hance’s office is at the Kirkland, Wa., headquarters of Gates’ Cascade. The richest man in the world reportedly sunk half of his $40 billion fortune into Cascade, to diversify into ventures other than his Microsoft. Also involved in Cascade is the world’s second richest man, Warren Buffett. He weighs $37 billion.

Hance didn’t return several calls. But according to MLS listings, Front Range paid $5 million July 13 for a 5,000-square-foot home at 100 Harbor Way, on Martin County’s Jupiter Island. The Intracoastal property, which is surrounded by sea-grapes and mangroves, had been on the market for $12 million then $7 million.

It doesn’t seem, however, that Jupiter Island will see either Gates or Buffett anytime soon. Already, the property has been put on the rental market, at a monthly season tag of $50,000-a-month.

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The seller of the Harbor Way home, Jeff Gelman,  said Hance played it close to the vest. But a Google search exposed the kid.

“We figured we were dealing with Bill Gates’ people,” said Gelman, a developer who also sold Canadian songbird Celine Dion her Jupiter Island property.

But there’s something else Hance played: hard ball. And his tactics, Gelman said, caused the other sellers to pull out and void the contracts. Gelman was the only one who sold.

“I had to sell, I was done with the place,” Gelman said.

With the five homes under contract with no deposit, Gelman said, Hance returned a couple weeks before closing and changed all his offers at once. Gelman’s home went for $5 million, half a million lower than what was previously agreed to.

“He even wanted to know if there was Chinese drywall,” Gelman said.  ”It was one thing after the other. My house has an indoor pool with a $135,000 movie theater that piped the sound underwater. I offered to sell the thing for $30,000  and they offered $10,000. So I took it with me.

“In my 25 years in selling luxury homes to famous people, this was not one of my favorites. And it can’t be good for the market.”

Another potential seller, Stuart’s Steve Earsley, reportedly agreed to sell two Jupiter Island properties to Hance’s boss. Hance returned with a much lower offer, and the sale was cancelled. Earsley didn’t discuss the numbers although the properties are currently listed for a total $20 million.

“Things are probably done differently in Washington,” Earsley said.

Waterfront Properties‘ Rob Thomson, the listing agent for the properties eyed by Gates’ people, declined comment about the buyer. But, he said, it’s a good sign for all sellers.

“This is clearly a sign the market bottomed out,” Thomson said. “We haven’t had investment firms buying here in two years.”

No spokesman for Cascade responded to interview requests.

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