Storm Continues for Orlando Condo Developers

Thunder StormLast week’s Orlando Business Journal highlights some of the headaches currently facing Orlando’s condo developers:

At Veranda Park in MetroWest, eight developers have filed a total of $11.2 million in leans against the billion dollar project. To date, only half of the 10 projected buildings have been built and it’s impossible to imagine the rest, including a condo hotel, going up in the current climate. The idea of a MetroWest condo hotel seems odd at any time of day, but when there are few buyers, and virtually no loans available on this product, especially for foreign nationals, I think we can safely assume we won’t be seeing that one break ground any time soon! (Despite developer claims to the contrary.)

At the exclusive Reunion golf resort near Disney, developers are facing a massive class action lawsuit from buyers over alleged misrepresentation of the values of homes sold during the height of the boom. We’ve been following this one for a while now – and the case has recently moved back to Florida.

Involuntary bankruptcy is being filed against F.F. Kirkman, the owners of Studio Park condo conversion on Kirkman Road (psyche!) who allegedly owe nearly $2.5 million in loans to an insider company.

Meanwhile, downtown at the Plaza, it seems that the long awaited movie theater may never transpire due to foreclosure on part of the building by the lenders. Developer Cameron Kuhn says RP Plaza Property LLC, which owns the theater space there, has taken the position that it is not building a movie theater in that space. This, despite the fact that it’s virtually complete… Go figure.

As you may have noticed over the last 72 hours – when it rains, it pours…

For more info on MetroWest’s Veranda Park, see our Veranda Park Condos page.

6 Comments

  1. It amazes me how poorly some of these very experienced highly capitalized developers timed the real estate market. They were buying up dirt at the height of the market for new projects. It seems to me that the smart money would be looking to buy dirt now from weak hands and bank it until the market is better.

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