The following summary is for Regency Suites, an approved ten-story mid-rise Condo-Hotel building in Orlando, FL containing 325 for sale condominium hotel units.
In April 2008, the project was 98% sold out, but the turn of the market and loss of construction funding forced the developers to halt construction and delay the project.
The property is located along the west side of Regency Village Drive, north of Vineland Road, in Orlando, Florida. The site has an area of 5.37 acres. Construction commenced in April 2006 and is approximately 13% complete; if construction were recommenced in December 2012, completion would be March 2014.
The new strategy is to obtain the transfer and acquisition of the property through a friendly bankruptcy filing. The new investor / development company would become the stalking horse in a friendly bankruptcy to acquire the property and clear $16 Million of secured and unsecured debt. The stalking horse could achieve the title transfer through the bankruptcy for a small fraction of the total project debt.
If the project is competed as originally designed without major changes, it would take 15 months to complete upon recommencement of construction. If the new development team desires to make design changes, such as converting 2BR units to One Bedroom units, “interior” redesign work would be completed, and it would create a major saving (between three and ten million dollars) in hard costs depending on the project’s final design. It is possible to build a six-story building with penthouse (as opposed to the designed 9-story building with PH), thereby saving millions of dollars in construction costs, while maintaining the 325 unit count.
Total development, finance and marketing costs depend on final construction plan and exit strategies. If a project redesign contemplated only executive suites and one bedroom units, the project could be completed with approximately $28M (325 units). However, if the full original project plan is completed, the total cost would approximate $35M (325 units). If the new development tea, desires to build less than 325 units, further savings can be achieved, and the project could be topped off at the 4th, 5th or 6th story, depending on funding availability and final project design.
Total gross sell-out is between $65 Million and $72 Million, depending on final plan.
Read More in the File Regency Suites