condotel
Posts:2
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| 10/02/2007 9:42 PM |
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| Hi, I'm wondering if any of you have bought at The Diegan?? I'm trying to find some other owners at this project. It's a condo hotel project that is scheduled to be completed at the end of the year or 1st qtr. 2008. The sales person keeps telling me that they may increase prices and that they're about 50% sold out. HOWEVER, I DON'T BELIEVE HIM. Supposedly they just signed a hotel managemet company, The Setai, but I can't foresee this project to be as elaborate as this hotel manager's portfolio. If you've bought here-- what are they telling you??? Has anyone cancelled and were able to get back their full deposit?? I want to cancel but don't want them to take my deposit. Please help! Thanks ! |
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Anonymous
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| 10/02/2007 9:52 PM |
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I thought that I read somewhere, possibly on this website, that they have abandoned plans to go condo on the Diegan.
Perhaps they are now thinking they can leverage the signed contracts into other financing or simply take your deposit as I doubt they'll just give it back given how the market has performed.
Good luck and let us know how you do with the sale office.
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Anonymous
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| 10/02/2007 10:04 PM |
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Whatever happened to the Hard Rock?
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sandiegodweller
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| 10/02/2007 10:40 PM |
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Posted By n/a on 10/02/2007 10:04 PM
Whatever happened to the Hard Rock?
It is 95% done. It should be finished in a few weeks.
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condotel
Posts:2
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| 10/03/2007 5:44 PM |
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Yes, Hard Rock sold out very quickly and should be opening up VERY soon. They know what they're doing and offered their clients information on how the hotel management was going to operate and what the revenue splits are. On the other hand, The Diegan, seems to be lost. We have been in escrow for nearly a year and we (as future owners) have not been informed of what our HOA dues are, what the splits are, NOTHING at all. I would have purchased at Hard Rock but found out about The Diegan first and at that time it was the first and only condo hotel. Condo hotel seemed to be an interesting and good way to earn cash flow from my research with areas like Florida. But Hard Rock is now beating the Diegan to the punch.
I've read all over on various media pieces that the developer (Steve Rebeil) had contested in court that he is going to turn the project into just a hotel and return all our deposits but when I questioned the sales person, they told me "no". If anyone has contracted to buy at The Diegan-- please reply or send me an email. I'd love to hear what the sales people are telling you. |
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another buyer
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| 10/14/2007 6:02 PM |
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| Been in contract for well over a year, never get calls or updates unless I track them down. Supposedly the Setai is going to manage it and has made them do more upgrades to rooms to a true 5 star, but still no info on rental splits etc. |
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Mr_Brightside
Posts:59
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| 10/14/2007 6:09 PM |
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When it comes to investments which a condotel by definition is the lack of transparency can only be seen as a bad.
I doubt this makes sense to hold onto in the current environment. How long of an escrow do you have before you can exit it without penaly? |
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another buyer
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| 10/14/2007 6:26 PM |
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| When I asked them about a refund a few months ago, they said they wouldnt give it back. |
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Mr_Brightside
Posts:59
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| 10/14/2007 6:31 PM |
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How big is your deposit?
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another buyer
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| 10/14/2007 6:32 PM |
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| 10% |
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Mr_Brightside
Posts:59
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| 10/14/2007 6:41 PM |
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How much is your unit? If you are able to scan a PDF of your purchase agreement and post it here (name removed of course) we can look for some ideas on how you might react.
I doubt they would want to lose any buyers even if the project is 50% reserved they would probably operate the hotel with half individual owners and with the traditional approach for the balance.
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Ana
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| 10/15/2007 10:20 AM |
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| I thought the Diegan is now the Satai. I thought I have read that somewhere not too long ago. |
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Parklost
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| 10/15/2007 11:23 PM |
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Posted By n/a on 10/14/2007 6:26 PM
When I asked them about a refund a few months ago, they said they wouldnt give it back.
I don't think they have to give your deposit back. You need to your contract and see what the liquidated damage section says.
Some people think that the liquidated damage is limited to 3% of the sale price but that's only the percent used on the CAR forms for owner occupied properties. 3% is not based mandated by law.
That's why developers use their own forms and not the Realtors' forms.
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condotel
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| 10/22/2007 4:27 PM |
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Hi anotherbuyer- i've been researching a lot on the Setai group because the sales people at Diegan sent me an email when they selected Setai to manage. I believe the hotel group name is GHM. Based on my findings, this group has only two hotel in the US (in Miami & NY) and the rest are international. Their projects are amazing and very beautiful with very expensive room rates but I can't see Diegan charging that type of price! Go to www.ghmhotels.com and let me know what you think....
I did call the sales office to ask them about what i've read in the media re: the deadbeat developer, Steve Rebeil, and how he testified in court saying that he is going to return buyers' deposit. However, when I called, my sales person said that they are not giving refunds-- if we cancel we will lose our 10% deposit. Now, if push comes to shove, I don't know if they will be able to? I've read thru the contract but there should be protection on our side as buyers. I've felt that they have not informed buyers for over a year as to 1. what is happening with the project 2. what our splits are 3. what the hoa dues are 4. what the rules of the hotel operation (additional cost and expenses)--- lack of disclosures should be reason enough to return our deposits. I know that when Hard Rock was selling, they would open escrow, allow the buyer a 30 day period to meet with the hotel management company and then decide to move forward or cancel w/out losing their deposit. Hard Rock has it down VS. Diegan is inexperienced!!! If there are any other buyers, let me know if the sales agent at Diegan has been "puffing" about the project. Each time I call to inquire about a status on the project, the sales person (i won't mention HIS name) would say "great" things like: We've hold off on sales because once the Setai takes over, they're going to increase the prices. They have a list of their hotel frequenters that they are going to contact 2. Donald & Ivanka Trump was in town one weekend and wanted to buy us out but we said "no" because we want to be hands on with the hotel management 3. We are going to be 5 stars! The only 5 stars- like the W but on steroids 4. What Hard Rock is doing is illegal (re: discussing about hotel management fees & split prior to closing), they don't know what they're doing??
Have these things been said to you? I'm curious because I'm very ready to start a class action suit against them!!!! MrBrightside- are you a Real Estate Lawyer because I might hire you to get me out of this!!!! |
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real etate consumer
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| 10/23/2007 7:54 AM |
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| Developers are greedy. If they think they can get away with keeping your deposit - they will. However, if the Diegan knows that you have an attorney involved, you will have a better chance of getting back your deposit. Accordingly, I would suggest contacting an attorney to evaluate your situation and then to write this developer a letter. Make sure you use a real estate attorney. I have used the law firm of Aron & Hogue for a similar situation, and have been successful. I know that they have done a lot of real estate deposit type cases. You can probably google them to get their contact information. I hope that this helps. |
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anon
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| 10/23/2007 12:54 PM |
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If the developer delivers the product as the contract states, why would you expect to get your deposit back just because you change your mind?
You signed the contract with the clause that there are liquidated damages if you back out.
If the developer doesn't deliver, you should get your deposit back. |
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Brian
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| 10/23/2007 1:00 PM |
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Posted By n/a on 10/23/2007 12:54 PM
If the developer delivers the product as the contract states, why would you expect to get your deposit back just because you change your mind?
You signed the contract with the clause that there are liquidated damages if you back out.
If the developer doesn't deliver, you should get your deposit back.
Who's the greedy party here? The buyer or the developer? |
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Drew35
Posts:13
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| 10/26/2007 10:27 AM |
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| The contract states that they must complete within 30 months of signing the contract....Most people signed in October 2005 so they need to complete by mid April 2008..If they don't then you get your depost back.....It looks like it is going to be close....Does anyone have any input??? I know they are delayed but dont know by how much....... |
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anon
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| 10/26/2007 1:53 PM |
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| The Buyer. They are looking for a free "option". |
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Diegan Buyer
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| 11/03/2007 4:28 PM |
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| As buyers we also have the opportunity to exercise an "out" clause if there is a material change in the project. I feel like the entire name change, advertising and marketing material change, and whatever else they throw into the mix constitutes "material change". California is a very pro-consumer state, so I guess we will see. I have also heard from a commercial Loan Rep that the Diegan Developers are searching for additional funding...not a good sign. If we are able to get our deposits back, that would be an almost certain cause for bankruptcy by the develeloper and then what???? As potential claimants, we may have a hard time getting our money back. Be sure that they will do anything possible not to lose any or refund any deposits. |
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