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tistheseason

Beach Fanatic
Jul 12, 2005
1,072
93
52
Atlanta, GA
Re: Seagrove Construction Question

When/where is the seagrove market relocating? Every time I'm there I expect it to be the last time at the ol' locale. A girl can only go "one last time" so many times -- but I do hope it stays put for a while!
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
Re: Seagrove Construction Question

When/where is the seagrove market relocating? Every time I'm there I expect it to be the last time at the ol' locale. A girl can only go "one last time" so many times -- but I do hope it stays put for a while!
Downstairs in the Hotel Viridian.
 

PrincessKel

Beach Comber
Jul 10, 2005
20
0
Tennessee
Re: Seagrove Construction Question

I went to the Hotel Viridian website and clicked on the "Contact Us" link. Of course it has something to do with money. From what I can understand, it is going to be condos and hotel rooms??? But the email I recieved said that contracts and such aren't expected to be signed until Fall 2007. I am keeping my fingers crossed that it WON'T happen.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
Re: Seagrove Construction Question

I went to the Hotel Viridian website and clicked on the "Contact Us" link. Of course it has something to do with money. From what I can understand, it is going to be condos and hotel rooms???


They call them CONDOTELS. In a nutshell, the developer builds a "hotel" and sells the hotel rooms to "investors." The "investors" get to use their "room" from time-to-time and in between uses, the hotel's owner rents out the room to guests, contracts the maid/linen service, and manages the property--all for a percentage of the amount they take in on the rooms "if" they ever get rented during the year. There's also the expense of the upkeep of furnishings and amentities as dictated by the establishment. If you happen to "invest" in a room that is next to the ice machine or over the air conditioner units, you may not have the rental traffic the developer "suggested" you might have and your "investment" will turn out being "Enron by the Sea." Condotels are pretty much the biggest real estate gip going--lots of fine print, lots of wherefores and therefores....marketed to folks who know no better.

.
 

bennedy

Beach Lover
Dec 8, 2006
52
0
67
Re: Seagrove Construction Question

It is my understanding that sales are lagging and that the agent on site left to go make some money somewhere else. Nothing will happen until 80% of the units sell....... Long live the Seagrove Market and the grouper sandwiches !!!!!
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
Re: Seagrove Construction Question

It is my understanding that sales are lagging and that the agent on site left to go make some money somewhere else. Nothing will happen until 80% of the units sell....... Long live the Seagrove Market and the grouper sandwiches !!!!!

Development sales agents have knocked the Maytag Repairmen off the top of the list as "the Loneliest Guys in Town."
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sberry123

Beach Comber
Mar 5, 2006
39
0
Re: Seagrove Construction Question

They call them CONDOTELS. In a nutshell, the developer builds a "hotel" and sells the hotel rooms to "investors." The "investors" get to use their "room" from time-to-time and in between uses, the hotel's owner rents out the room to guests, contracts the maid/linen service, and manages the property--all for a percentage of the amount they take in on the rooms "if" they ever get rented during the year. There's also the expense of the upkeep of furnishings and amentities as dictated by the establishment. If you happen to "invest" in a room that is next to the ice machine or over the air conditioner units, you may not have the rental traffic the developer "suggested" you might have and your "investment" will turn out being "Enron by the Sea." Condotels are pretty much the biggest real estate gip going--lots of fine print, lots of wherefores and therefores....marketed to folks who know no better.

.


What an idea, the developer sells the hotel rooms where the owner will finance, insure, furnish, repair and other associated condo like costs. While the management company makes money off room service, a percentage off the top for renting your room and whatever charges they can profit from. Hey, insurance increase, the owner pays it, negative cash flow to the owner, that's life. :eek:
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
Re: Seagrove Construction Question

What an idea, the developer sells the hotel rooms where the owner will finance, insure, furnish, repair and other associated condo like costs. While the management company makes money off room service, a percentage off the top for renting your room and whatever charges they can profit from. Hey, insurance increase, the owner pays it, negative cash flow to the owner, that's life. :eek:

It was a good idea during the frenzy when so many "investors," suffering from recto-cranial inversion, bought up anything remotely resembling real estate...now dot.condos are a pretty hard sell and even harder to finance--especially now that commercial banks have been smacked on the snoot by the Fed.

.
 
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TooFarTampa

SoWal Insider
Re: Seagrove Construction Question

It was a good idea during the frenzy when so many "investors," suffering from recto-cranial inversion, bought up anything remotely resembling real estate...now dot.condos are a pretty hard sell and even harder to finance--especially now that commercial banks have been smacked on the snoot by the Fed.

.

:rotfl: :rotfl:

Seriously, though, glad these "opportunities" are being exposed for what they are ... sweet deals for the developers and managers and little else. Glad they are now a hard sell. I hope the owner finds other things to do with that parcel, if he feels that he must.
 

spinDrAtl

Beach Fanatic
Jul 11, 2005
367
2
Re: Seagrove Construction Question

They call them CONDOTELS. In a nutshell, the developer builds a "hotel" and sells the hotel rooms to "investors." The "investors" get to use their "room" from time-to-time and in between uses, the hotel's owner rents out the room to guests, contracts the maid/linen service, and manages the property--all for a percentage of the amount they take in on the rooms "if" they ever get rented during the year. There's also the expense of the upkeep of furnishings and amentities as dictated by the establishment. If you happen to "invest" in a room that is next to the ice machine or over the air conditioner units, you may not have the rental traffic the developer "suggested" you might have and your "investment" will turn out being "Enron by the Sea." Condotels are pretty much the biggest real estate gip going--lots of fine print, lots of wherefores and therefores....marketed to folks who know no better.

.

Your definition of a condotel is a little misleading. A project does not have to look like a hotel or act like a hotel in order to be a condotel. Typically, the property is defined that way if there is an on-site check in area and the property can be rented on a nightly basis. In many different locales, there are condo developments that are classified as condotels that have owner occupied units, units that do not belong to the rental programs, units that are rented/managed by the owners themselves, and also units that do long term rentals.

Condotel properties are not limited to 'hotel rooms' either. Many properties classified this way have units from studios to 4 and 5 bedrooms.

If an owner chooses to participate in a rental pool, then the things you say might apply in some form or another depending on the property. I'm sure there are some terrible deals out there and of course buyer beware, but all condotels are not alike. The classification of the property by itself does not make it a 'gyp'.
 
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