Hotel Developer Lands in Red Ink, Despite Boldface Names
... “He got caught in a bad concept — which is the hotel-condo concept,” he says. “That’s a failed concept. With a failed concept, he was swept along. That was a bitter lesson, and he is trying to learn how to deal with all that financial distress.” ...
"... During the real estate boom, condo-hotels were seen as a way for stars, jet-setters and other well-heeled investors to buy apartments that they could rent to others part time. ..."
"... That didn’t solve all his problems. Local real estate agents say Mr. Falor had trouble selling the Nicky O. units because he mispriced them. Peter Zalewski, a Miami Beach broker, said that Mr. Falor had a location with “prime” views, but was asking buyers to pay roughly $2,000 a square foot for a condo-hotel unit they could use only part time, when traditional condos nearby cost about $1,000 a foot. After buyers factored in maintenance, taxes and other fees, it would have been unlikely that rental revenue would have covered the monthly cost of their investment. ..."
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