Certainly not for $2,500,000. It would probably take about $1,000,000 downpayment to finance that in the current lending climate and the interest on the balance would be $90,000 per year at 6%-which is pretty hefty considering all other expenses and property taxes would need to be paid also. The place probably needs an additional $1,000,000 invested to make it nice again. This means the buyer would need a lot more cash to inject into improvements. If you had that kind of cash, you would probably just buy some bonds paying 4% or so and not work so hard.

However, waterfront lots on the Jersey are not that expensive and so it is unlikely to get condoed. It most likely will get split up and sold as waterfront lots- the cottages will get demolished or fixed up and used again. However, the final selling prices will be sharply less than $2,500,000.

To give you an idea, the Bayview resort on Little St. Germain lake is being divided up and sold. The cottages are much nicer than those of Duck Point and they are on a MUCH more expensive lake. They are asking $150-$160K for most of them and none have sold. The total asking price for that entire resort is about $1,000,000 and again NONE have sold.

So, if they are going to stay anywhere near their $2,500,000 price, the Duck Point resort will remain for quite some time- just like it is.