condotel?

[piaford]

i'm working on 2 appraisals in the same condo complex - brand new, supposed to be finished next week . . . i have just been informed that it is going to be condotel . . . .supposedly because they will be allowing one night stays and there is supposedly going to maid service and a "doorman" - but they are going to be individually owned and run by more than one vacation rental company . . . . what EXACTLY constitutes a condotel and what do i need to tell the lender? can i even do this appraisal on a regular condo form? i've never paid much attention to the newsletters and things regarding this because i've never had to deal with it before! help!

 

[Mztk1]

I believe they are considered non-residential in nature. I am doing one now as a foreclosure. I doubt you are doing this for LandSafe but attached is the LandSafe procedural guide on condo-hotoels, how to identifiy them and appraise them. It might help.

 

[JRS at OBX]

Hey Pia. Where is the condotel going?!?

With condotels, there is maid service and central telephone systems. There is usually going to be a central check-in desk. There aren't going to be any condotel comps in this area that I know of. lol...glad you got that assignment instead of me!!

 

[piaford]

it's First Flight Retreat! I personally wouldn't consider it a condotel . . . but suppo sedly is going to have a doorman and maid service . . . .but it seems to me the "maid service" will be through the different rental companies that will be used . . . but guests supposedly will be able to pick up their key from the "doorman" - but i don't know where this "doorman" is supposed to be . . . there's no concierge desk or lobby or anything that i know of!?!?!? someone expressed concern to me because of financing issues - i don't think it's a condotel but an underwriter might!?!?

 

[piaford]

thank you - that helps . . . .i personally don't think it is a condotel, but it looks like it is kinda up to the underwriter!?!?

 

[Vegan702]

I believe they are considered non-residential in nature. I am doing one now as a foreclosure. I doubt you are doing this for LandSafe but attached is the LandSafe procedural guide on condo-hotoels, how to identifiy them and appraise them. It might help.

So how come they instruct the appraiser NOT to make the determination if it is a condotel?

 

[Ray Miller]

Not finished --- I assume you are going to do it subject to??????


CondoteL --- income approach, cap rates, HBU as a condotel,

Would this be considered residential or Non-residential?

What non-realty interests do the owners own in the condotel?

What value are you seeking: Market value, cost value, Investment value, Value in use, going -conconcern value, mortgage loan value, Liquidation value?

Is there a sinking fund and what is the factor?


Are you going to hold out the Hoskold premise in your appraisal?

Many, Many more questions need to be answered. What is your scope of work for this appraisal?

How is the income divided, who holds the common areas, who covers replacement cost and damage cost, owner fees?

 

[JRS at OBX]

That doesn't sound like a condotel. Maybe a condo with short term rentals. Most condotels look like a hotel. FFR is just a condo complex...in my opinion. If the rentals are going to be going through the various rental companies then I wouldn't worry about it. Condotels usually have a centralized reservation system. I've stayed in a condotel in myrtle. The only reason I knew it was a condotel was because they were advertising the units for sale in the elevator and had an onsite sales office.

I wouldn't worry about it too much. You might have an underwriter that gets a little worried but but just explain and let it go.

You could always try and get a hold of Matt at the Village (if you can get him to call you back) and just make sure there isn't a central telephone system and all that kind of stuff.

I have a feeling that if they are turning that into a condotel this late in the game they might have some upset owners. I saw Matt yesterday and he said there were only a few units left. If I bought one of the first units in a condo then they switched into a condotel, I'd be consulting my attorney.

 

[Ray Miller]

thank you - that helps . . . .i personally don't think it is a condotel, but it looks like it is kinda up to the underwriter!?!?

"Don't Think" ---What does your research show?????

Condotels are complex little rats!!!!

They are just starting to take a hard look at the appraisals there were done here in my area on the large condotels. Most were not done as condotels so the loans would fly, now that they are being foreclose on the investor banks are yapping now about it.

 

[JRS at OBX]

They have 5 different rental companies listed on the webpage for First Flight Retreat that you can refer the UW to if they have any questions.

Now I need to pack, I'm headed down to Myrtle Beach for the weekend and I'm staying in a condotel!!

This time tomorrow I'll be drifting around the lazy river. :new_smile-l: