• Scam Diego alerts

The trendy Hard Rock Hotel San Diego at the entrance of the Gaslamp District, and one block from Petco Park, was sued today (Tuesday Dec. 8) for fraud. The hotel is said to have been the first hotel condo in San Diego. Investors bought suites and had the right to occupy them for a maximum of 28 days a year. For the rest of the year, they would be occupied by others. Plaintiffs Tamer Salameh and Real Estate 4 Hospitality LLC claim they have lost a bundle of money on their investments. The suit will attempt to become a class action. Defendants include Irvine's Tarsadia Hotel, officials Tushar and B.U. Patel, and 5th Rock LLC. The suit charges that the investments were not registered with either the Securities and Exchange Commission or the California Department of Corporations. Promoters allegedly used bait and switch techniques in selling the investments.Plaintiff attorney Mia Severson says that investors were told the rental program was not mandatory, but it was. It was not feasible for investors to operate their own rental management system, as they were promised, the suit says. I could not reach the company for comment.

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Comments

Don Bauder Dec. 8, 2009 @ 10:40 p.m.

DEFENDANT RESPONSE: Tarsadia got back to me this evening, saying, "The claims and allegations of wrongdoing are absolutely and completely without basis." Best, Don Bauder

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Don Bauder Dec. 9, 2009 @ 9:10 p.m.

NOTE; Today's (Dec. 9) Wall Street Journal has a story about a Chicago condo hotel, Hotel 71, that sold for $37 million, a mere fraction of its debt. The story alludes to "developer Robert Falor's ill-fated effort to build a condo hotel empire." Best, Don Bauder

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SurfPuppy619 Dec. 10, 2009 @ 5:18 p.m.

The story alludes to "developer Robert Falor's ill-fated effort to build a condo hotel empire."

LOL...timeing is EVERYTHING in real estate-ask Donald Trump.

I remember back in the early 90's when they were building the Pladium (high end) indoor mall, at a cost of $37 milliom, on the block west of Horton Plaza, again right before the RE market imploded.....and it came online right when everything fell apart. The builder said "no problem, we will do fine" and it immediately went into default and was foreclosed on. Long story short-it sold for $7 million, 20 cents on the dollar. New buyers couldn't get it to work as retail and last I heard were trying to make office space out of it.

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Don Bauder Dec. 10, 2009 @ 10:43 p.m.

Response to post #3: I saw in the Wall Street Journal that a W Hotel in New York City sold for a tiny fraction of the debt on it. Hotels are ailing. Commercial real estate generally is in sick bay. Best, Don Bauder

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SurfPuppy619 Dec. 11, 2009 @ 8:35 a.m.

Hotels are ailing. Commercial real estate generally is in sick bay.

Another solid, valid reason to not believe anyone who says we have bottomed out yet................

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Don Bauder Dec. 11, 2009 @ 2:20 p.m.

Response to post #5: And despite all you read, residential real estate still has troubles ahead. Best, Don Bauder

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