$17.1M for Disney Vacation Club building

[Tony P. IL.]

Will this affect DVC members in any way. Lets say they buy another building or build one for more than they sold for does that affect our dues.
Link to story. http://orlando.bizjournals.com/orlando/stories/2009/05/18/daily50.html

 

[tjkraz]

DVD/Disney never owned the building in the first place. It was purchased by one group of investors from another group of investors. DVD has a long-term lease to use the building which should not be impacted by the sale.

The relationship between DVC and DVD is a bit slippery. However DVD (the development company) is not funded by member dues and DVC (the management company) is funded by a fixed 12% of our dues. So I don't see how a headquarters building could have any practical impact on dues.

 

[Tara]

Will this affect DVC members in any way. Lets say they buy another building or build one for more than they sold for does that affect our dues.
Link to story. http://orlando.bizjournals.com/orlando/stories/2009/05/18/daily50.html

I'm not clear - is this the building DVD recently moved to, or the old location it moved from? Seems like it's the new place and what DVD has done is sold the building and then leased back the space?

 

[Chuck S]

I'm not clear - is this the building DVD recently moved to, or the old location it moved from? Seems like it's the new place and what DVD has done is sold the building and then leased back the space?

It sounds like it is the new building. As to whether it was ever actually owned by DVD is questionable, as a lease expense is a direct tax write-off but ownership is not, it is a depreciating asset. Likely the building was build by an investment group to DVD specifications, and leased to DVD. And that investment group has sold it to another investment group.

This is a common practice. For instance, most Wal-Mart buildings are not owned by Wal-Mart, they are owned by an investment group that includes the employees retirement funds, and leased back to Wal-Mart.

 

[White_Sox_Fan]

It sounds to me like the building that houses the offices of DVD/DVC was sold, the offices have not moved. It appears that DVD has a long term lease and the owners sold to Duke/CBRE.