Bears Issue Warnings for Condos, Condo Hotels
The Condominium Summit, co-presented this week in Fort Lauderdale, Fla., by Commercial Property News and Multi-Housing News, ended with a hearty debate over the future direction of the condo market. And when push came to shove, the condo hotel segment was hit with the greatest criticism.
Hollowell criticized more traditional residential condos. He pointed to a variety of “fuzzy fundamentals,” such as too many third-string developer sponsors, too many highly leveraged projects, “the most creative financing since the early ’20s,” unpredictable construction costs and too many investors that entered the market simply as an alternative to the stock market.