Plaza Resort & Spa in Daytona Beach. Life After Bankruptcy
I recently received an e-mail from an owner of the unit in the Plaza Resort & Spa. No, I was not his agent when he bought the unit there abut two years ago. With the real estate market as it is, a terrific buy in 2005 turned into a heavy liability.
Gorgeous direct oceanfront studio. Maintenance fee since he purchased the unit more than doubled. With the price iin high $200s the mortgage payment plus Maintenance plus taxes are not covered by the rental income, and he needs to reach into his pocket to subsidize it.
And then the news, the Management company filed for Chapter 11. Sad story, but rather common lately. The rental check came, and it bounced back. He called and did ot get to anybody. Called the owners liaison, but did not speak to her. He even called the management, they transferred him to a phone, where he could not even leave a message.
He read my post Daytona Shoreline Hotel Tycoons File for Chapter 11 and sent me an e-mail asking whether I could give him any information.
He sold his home and lost money on the sale, moved out of Florida, struggles with this condo-hotel, which he is not even using any longer. For him the checks not coming is not an option, he would not be able to pay that much money.
I promised I would go there and try to talk to someone, if I manage to get that someone. I came in the morning, it was quiet, the day was absolutely gorgeous. Ashley, the Owners Liaison, was at her desk. She is a nice looking young lady, we met before when I was representing buyers of units in the resort.
As I expected, Ashley told me that she did not have much to say, everything was the same way as before. The filing of bankruptcy did not change anything for the owners, according to the management. In this resort there were no changes, the same management company, no layoffs, nothing. Well, bounced checks were an unpleasant coincidence. Of course, it is a tell-tale sign of the times, but I do not have any reason not to believe Ashley.
The developer has so many properties, and a lot of them are either land, or empty hotels waiting for demolition, and Plaza Resort & Spa is their flagship property, and if any of their holdings are profitable, Plaza would be the first on that list.
So, dear owners. I was assured that you will be getting your money. If you still too deep in trouble, and need help, talk to us. We are not pushing, and we are knowledgeable.
Will filing for bankruptcy cause further decrease in prices in Plaza Resort & Spa?