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Re: Important Update Affecting Resale Purchasers (by Brett W.):

josephb172 wrote:

The "math" is this: Vistana said each unit had $5,000 in refurbishments per owner week. 50 weeks of ownership times $5,000 = $250,000 to refurbish a condo. That's about $200.00 per square foot. Modern houses can be BUILT FROM SCRATCH for about $125-$150 per SF, (not including the land or foundation). So why that kind of expense? A reasonable question, I think.

I never saw that number. Where was it stated? In what letter was it sent? The letter sent to us was that it would cost $1682 per owner week. This includes the code concessions that they would have to do in the condos themselves. So, per condo it will run $84K, now some of the condo buildings Original Vistana, Spas, Springs and Falls will have a bit more in expense to get them up to code than the newer buildings. Now there might be an additional number as you have to remember that Starwood is shoving some cash into this refurb too. They are not going to cut corners, especially on codes (when they are required). Now with the cash they are infusing (which should be in their annual report) there might be a $5000 total charge per condo owner week on some of the condos, but that does not mean that the owners are going to be charged that amount. You have to remember if there are some major code issues to be resolved on these older buildings this could mean that the water systems, drainage systems, sewage systems or even electrical systems may have to be revamped. This means walls torn down and rebuilt, etc. There are a total of 1008 condos being done at $84K each that is a basic budget of $84 million dollars. Double it and add 25%, your at a total of $210 million dollars. If you take the $5000 per unit week, your at $262 million dollars, total budget should fall in to this range if the $5000 is correct. Starwood is getting 30% from the owners.