The entire property at Toad Cove including the 116 room luxury hotel has been turned over to a management company (i.e. bankruptcy for the developer) and will remain open and operated for the bank. Several banks were participating, but Valley View Bank was the lead lender on the project.
The concept of the full service “condo-tel” was probably a bit premature for this market, it’s hard to justify paying $350,000 for a fancy hotel suite when our local MLS is loaded with very nice 3 and 4 bedroom condos that are twice the size for much less. Add to this low demand the severe lending restrictions on “condo-tels” and this was inevitable. There was nothing wrong with the product, it was promised to be first class and it was. Timing, as they say, is everything.