W South Beach construction drama arises from speculators noting substantial loss of value from inflated frenzy on a solid product. W South Beach IS one of a kind but with asking values averaging $1,968 per square foot for the month, the final product is now showing signs of distress from the speculator community (from 2006). The South Florida Business Journal published an article today on alleged deception in W Hotel South Beach (2201 Collins Avenue) with several unit owners suing for their deposits to be returned in their entireties. The alleged suit claims the developer promised 520+ units, larger sized units and a second pool at the stylish 420 unit condo hotel.
“The biggest problem at the W right now is the values have declined so substantially, and nobody will lend on that,” said Dennis Freeman, a Miami Beach attorney handling one of the cases.- S. Florida Business Journal
Whether or not he’s referring to the resale values or the hotel room rates (or both) was undetermined but these speculators are asking for the full 20% deposit returned which is unlikely to occur in my opinion. The biggest issue seems to be fewer number rooms than promised as the total ownership is based on the total number of condo hotel units and that percentage of space is used to determine the amount of monthly maintenance costs. In this case and in my opinion, today’s maintenance fees are relatively consistent with other condo hotels of South Beach or approximately $1.50 psf. Other complaints are the smaller than promised “rooms,” a door connecting rooms not disclosed, the elimination of the second pool to the number of trees planted outside.
As of March 2010, 53 deeds were recorded through Miami Dade County out of 420 total W SoBe condo hotel units. W South Beach still a very desirable property and a known celebrity hangout. The newest & latest is typically the hottest in South Beach as was The Setai in 2007. I expect it to do just fine over the next 3 years as values catch up with the market or the market catches up with values.
Some condos and hotels in Miami are having problems because of some financial and location issues that's why in choosing the best hotels in Miami, check those hotels and condo that can stand out and the owner itself can manage it well especially those people who works at the hotel.
Virtualusa
These condo/hotel units will never appraise out. The current depressed market will not support these rediculous asking prices. There are high sales in the market, but their living areas are at least 500 to 1,000 square feet larger than those offered here. Most luxury highrise condo building have comparable amenities, so don't tell me that the hotel amenities are going to demand these rediculous $1725 per square feet price.
http://MiamiBeachRealEstateBlog.us AshtonC
As of June 21st, 2010, 66 deeds are recorded through Dade County or 20% increase in 'closed' W Hotel units over March 2010 figures reflecting 53 sales. In the last 90 days alone, 16 luxury condos of South Beach have closed above $1,000 psf with the highest PSF sales at Setai reflecting $2,416psf and Fontainebleau II selling at $2,000psf!
It's good to be familiar with W prices (MLS Resales Ave.~ $1,830 psf) and I agree the rooms are small, however it's not about the amenities demanding these values. Rather the speculators looking for loopholes to get out at the contract prices. W South Beach buyers don't care about amenities so much as they “demand” service & exclusivity with the W name & reputation alone proving the very best clientèle.
http://www.hotelurbano.com.br Pousadas em buzios
Hey, this one is really one of the saddest news for W Hotel South Beach. And it’s really all about for money and land. Thanks for the sharing some informative news.
Imaf raud
Looks to me like there was an attempt by W to sell a “security” as opposed to a real estate sale which may run afoul of the Securities and Exchange Commission rules and regulations. If so, then expect a class action law suit by the investors that were ripped off will a lack of full disclosure and deceitful marketing practices. If I were W I would give the investors back their money with statutory interest now then face a jury trial and face punative damages..
Peter B.
Imafraud369
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTSStarwood has disclosed in their financial statements that they may expect to lose a lot of money on this case and/or other litigation. “However, depending on the amount and the timing, an unfavorable resolution of some or all of these matters could materially affect the Company’s future results of operations or cash flows in a particular period.” Thus, stockholders and potential investors should take very seriously the notes to the Starwood financial statments and potential purchasers of their condominum products should become ”aware” that such disclosures exist for very valid and legal reasons. The wording is that of the Starwood managment – not the marketing departments of the condominum units – or the investors in the W South Beach properties. CAVEAT EMPTOR!!! Note 24. Commitments and ContingenciesLitigation.The Company is involved in various legal matters that have arisen in the normal course ofbusiness, some of which include claims for substantial sums. Accruals have been recorded when the outcome isprobable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be determined,the Company does not expect that the resolution of all legal matters will have a material adverse effect on itsconsolidated results of operations, financial position or cash flow. However, depending on the amount and thetiming, an unfavorable resolution of some or all of these matters could materially affect the Company’s futureresults of operations or cash flows in a particular period.The Company is involved in various legal matters that have arisen in the normal course ofbusiness, some of which include claims for substantial sums. Accruals have been recorded when the outcome isprobable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be determined,the Company does not expect that the resolution of all legal matters will have a material adverse effect on itsconsolidated results of operations, financial position or cash flow. However, depending on the amount and thetiming, an unfavorable resolution of some or all of these matters could materially affect the Company’s futureresults of operations or cash flows in a particular period.
Imafraud369
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTSStarwood has disclosed in their financial statements that they may expect to lose a lot of money on this case and/or other litigation. “However, depending on the amount and the timing, an unfavorable resolution of some or all of these matters could materially affect the Company’s future results of operations or cash flows in a particular period.” Thus, stockholders and potential investors should take very seriously the notes to the Starwood financial statments and potential purchasers of their condominum products should become ”aware” that such disclosures exist for very valid and legal reasons. The wording is that of the Starwood managment – not the marketing departments of the condominum units – or the investors in the W South Beach properties. CAVEAT EMPTOR!!! Note 24. Commitments and ContingenciesLitigation.The Company is involved in various legal matters that have arisen in the normal course ofbusiness, some of which include claims for substantial sums. Accruals have been recorded when the outcome isprobable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be determined,the Company does not expect that the resolution of all legal matters will have a material adverse effect on itsconsolidated results of operations, financial position or cash flow. However, depending on the amount and thetiming, an unfavorable resolution of some or all of these matters could materially affect the Company’s futureresults of operations or cash flows in a particular period.The Company is involved in various legal matters that have arisen in the normal course ofbusiness, some of which include claims for substantial sums. Accruals have been recorded when the outcome isprobable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be determined,the Company does not expect that the resolution of all legal matters will have a material adverse effect on itsconsolidated results of operations, financial position or cash flow. However, depending on the amount and thetiming, an unfavorable resolution of some or all of these matters could materially affect the Company’s futureresults of operations or cash flows in a particular period.
Imafraud369
I wonder how much of the unit sales at W South Beach were paid in cash with NARCO DOLLARS? If so then W South Beach and its parent company may be engaged in money laundering and may be subject to Federal charges and forfeiture laws. Please contact and ask the real estate agent below.
Imafraud369
James M
New York City, New York
1 review
“Rat Infested – DON’T VISIT W SOUTH BEACH”
Reviewed September 10, 2011 NEW
There are so many things wrong with this hotel…shall I start with saying there were RATS and RAT FECES in our room…umm…GROSS. Service is terrible, rooms are worn out, dirty, items broken and missing in the room, and housekeeping is worthless. As an SPG Platinum member, I travel to so many places and this hotel claims to be luxury and…
Looks like the rats are rea including the small and large ones at Wl. Reminds me of the line;
You Dirty Rat
Just by looking, you can tell he’s a real Rat Bastard.
“Rats is rats, past, present, and forever. Weasels change, but rats is rats!” —John Wesley Weasel, The Book Of The Dun Cow
Imafraud369
This member’s reviews have been voted helpful by TripAdvisor travelers.
CAVEAT EMPTOR – DON’T VISIT W SOUTH BEACH -SEE COMMENTS BELOW
“Does not honor SPG”
Reviewed September 2, 2011
Do not stay here. This hotel refuses to honor SPG benefits. They had 65% occupancy and refused to allow a platinum member checkout after 12pm. I wasn’t even asking for the 4pm, guaranteed checkout available to platinum members, I was asking for 2pm. Hotel very poor when it comes to valuing SPG members.
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