GlobeSt.com UPDATE: Troubled Sandy Lake Towers Attracts Buyer, Owner Tells Court

The property's Brazilian developer/owner Sergio Nava has identified the prospective buyer to U.S. Bankruptcy Court Judge Karen S. Jennemann as J&P LLC. Naya did not identify J&P further.

The buyer's due diligence period ends March 27. If no deal is done, J&P's $100,000 deposit will be refunded, according to court records.

Closely monitoring the latest Sandy Lake Towers scenario is Orlando timeshare developer David A. Siegel who has purchased $16 million worth of mortgages on the property previously held by Arbor Commercial Mortgage of New York. Siegel would have to be paid off before the Sandy Lake Towers deal could close. Siegel's discounted purchase price of the Arbor mortgages isn't disclosed in court records.

In court-filed papers, Naya values the completed first tower and the 80%-completed second tower at $33 million or $80,882 per room on a development basis. Orlando construction industry estimators tell GlobeSt.com on condition of anonymity the two buildings can't be erected today for less than $100,000 per room or a total $41 million at the minimum. A more realistic replacement figure would be $175,000 per room or about $72 million.

Sandy Lake Towers Inc. voluntarily filed for Chapter 11 protection from creditors in August 2001, listing assets of $19,000 and liabilities of $20 million. Naya has told the court the property is losing $100,000 a month. Sandy Lake Towers No. 1, a condo-hotel property, is at 15% occupancy, up from 11.5% occupancy in October, according to published reports.

Naya gained international media exposure in 1998 when his 22-story Palace II apartment building in Rio de Janeiro collapsed and killed eight persons. Naya denies defective construction work caused the structure's collapse.