Condotel deal in this market
Hi all!
I need some advice on a condotel deal. The project is called "The Village of Imagine" and includes the Westin Grande Imagine Hotel located across from the Orange County Convention Center in Orlando, Fl. It was slated to be a "Village" which was to include retail stores, condos, floating stage on the lake for concerts and so much more to surround the Westin 4+ star hotel. As the market softened, the only part of that phase that the Developer, a reputable one at that called Intrawest, could only afford to build the Westin Hotel and put a hold on the rest of the entire phase. Since this was promoted as the Village of Imagine, and now the village is somewhat imagined..lol..it has left most of the Buyers upset that their investments were not as lucrative as they had thought as well as the potential Buyers in contract with 20% in escrow for the last 2.5yrs, not wanting to even close on their deals. The Village is said be on hold indefinitely and the Buyers can lose $60k and up that has been held in escrow. Financing is another headache with Condotels as most Lenders won't touch them without at least 30% down and the Buyers all have 20% in escrow and the additional 10% needed is substantial. I would like to know what all your opinions are as to how these potential Buyers should handle their situations and if they don't close, or if they pull out of the deals they will lose ALOT of money. Also, for those who truly still have faith in the project (the Westin Grande Imagine is already open for business) where can they obtain Condotel financing with 20% down and not pay a fortune in misc fees to get it. Some of the terms are simply outrageous. All the input is GREATLY appreciated!! :)