Sunset Villa on Rota still in the market, says CDA

Investors from as far as Vanuatu and New Mexico have sent offers to buy the Sunset Villa Beach Cottages on Rota, which is for sale for $750,000.

Oscar C. Camacho, acting chief executive officer for the Commonwealth Development Authority, said the sale is still ongoing and will remain open ended until a satisfactory price is reached.

Camacho said the $75,000 price tag is the lowest that CDA would accept from buyers.

The property is located in Sonton Village along the main road on Rota, spanning 6,422 square meters and has 14 units of cottage-style dwellings on a beach site.

The most recent appraisal done showed a market value of $400,000 for the property. However, a replacement value of the building is estimated at $1.1 million.

“Thus the desired minimum amount of $750,000 is set,” Camacho explained.

CDA is also soliciting a hotel management contract to manage the account and operate the property.

Camacho said a restaurant could easily be set up since there is already a kitchen and dining place in the main building.

The second floor of the main building has an unfinished interior, which could be converted into a suite or a residential place.

Camacho said they have received several inquiries and five of these have already submitted “serious” purchase offers or for a purchase/lease arrangement.

These offers came from companies from as far as Vanuatu to New Mexico and range from $300,000 to $700,000.

Camacho said some of the proposed lease rental arrangements have a starting amount of $3,000 per month.

Member of the CDA board have met three of the potential buyers and have instructed Camacho to proceed with negotiations.

Camacho said CDA had even received security deposits as proof of the seriousness of the offers. “However, the board was concerned with the low prices, as well as the best offers that never really got off the ground because of concerns revealed in the background checks of certain individuals involved in the transaction.”

Camacho said that during the course of all these negotiations, CDA initially believed that it would finally dispose of the hotel and had decided to close its own management in anticipation of closing the deal with investors.

“Unfortunately, CDA finds itself in a situation where it had to move its CDA and NMHC offices to simply be able to maintain the hotel,” Camacho said.

He said that they are still open to whatever arrangement works best for all parties involved and has not ruled out another hotel management/consultant arrangement, which would have someone operating the hotel.

“There appears to be good prospect with what is happening to the casino initiative on Rota and there is opportunity there for hoteliers and or casino operators,” Camacho said.