Investors sue Sotheby’s alleging $7.5M condotel was a mirage
According to the suit, a second developer group purchased the half-finished project in late 2022 for what the filing calls “a paltry $2,550,000.” That group took on at least $10 million in additional loans and raised $12 million from 38 individual investors in 2024 through a Regulation D filing with the SEC, the lawsuit alleges.
Yet the project’s property taxes went unpaid – more than $191,000 in unpaid taxes, interest, and penalties, according to Summit County Treasurer records cited in the filing. Contractors filed liens: Rock Construction for $310,000 in concrete work, Quality Fire Protection for $104,000. The suit says unpaid contractor bills exceeded $14 million total.
The project’s primary lender, a Park City-based real estate investment group called OKOA Capital LLC, had extended what the filing describes as at least $50 million in construction loans to the successive developer groups. In August 2026, OKOA foreclosed. Its winning bid at auction was $24 million, according to a trustee’s deed in Summit County records cited in the filing.
The investors’ interests, the lawsuit says, were wiped out.
The original and second developer groups and their principals are not defendants in this lawsuit. The sole named defendant is Sotheby’s International Realty Affiliates, LLC.
