This is coming through the grapevine. Do not rely upon the information here as it has not been verified and may or may not be correct. It is what I heard about the property and the lawsuit.
I already wrote that there was a lawsuit, and we were waiting the outcome to understand what the future has in store for this great project that hit the market at the wrong time.
The whole thing was kept in secrecy. The attorneys for the plaintiff warned everyone to be quiet about the settlement. Settlement... hm, so there is a settlement.
Yes, there is a settlement. 89 wannabe buyers got off the hook and got their deposits back. I do not know the details, but my understanding that they walked away with their money minus the expenses (legal fees, etc). Consider that it was going on for maybe even more than a year, calculate how much they would have paid in maintenance fees and mortgage payment should they buy then. Plus property tax. So, even with the expenses, they did very well.
I remember how the sales people were telling us that the first tower was practically sold out and they had about half of the second tower sold. Well, the whole project is 972 units in four 25-story buildings. Two build, with, obviously, 486 units. If now there are 70 units sold (according to new team of salespeople) and now we can count 89 would be buyers that now walked away, it is only 159 units. Hm, someone has a problem with arithmetic.
So, where are they now? Momentis Property Group - the new owner, is stuck wtih 70 units out of 486. How can they cover the expenses with 70 paying the Association Fee (assuming everyone of these 70 is paying)? There were also some mechanic liens, and as far as I understand, they were not taken care of either.
Well, looks like there are more questions than answers regarding this gorgeous property. I hope that the new owners have the vision and the resources to pull it through the tough time, as this is the most magnificent project in the area. Not only should it stay, I dream of it being completed with two more towers, as this will catapult the area and push for beautification of this blight riverfront.
The market started moving, and I hope they will survive until the money start flowing and people start getting interested in gorgeous waterfront properties again.
Jon Zolsky, your Daytona Beach, Florida connection
www.BeautifulFlorida.com
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