A buyer’s framework for evaluating Palazzo della Luna’s reserve liquidity, investment controls and capital-call calendar, while separating condominium obligations from Fisher Island Club costs.
At Palazzo della Luna Fisher Island, the purchase decision extends beyond the residence itself. The 50-residence, 10-story condominium, with architecture attributed to Kobi Karp Architecture, warrants the same precision in financial diligence that a buyer brings to layout, privacy and design.
Three questions merit particular attention: how much reserve money is available for its intended purpose, how it is invested, and when owners might be asked to contribute additional capital. A reserve balance alone cannot answer all three.
Current reserve balances, unrestricted cash, investment holdings and capital-call dates are not established here. Nor is there a basis to conclude that a special assessment is pending-or that none exists. Treat these as purchase questions to resolve through documents, not presumed strengths or weaknesses.
The association’s corporate name is Palazzo del Sol/Della Luna at Fisher Island Condominium Association, Inc. Its principal address is 7000 Fisher Island Drive, distinct from Palazzo della Luna’s residential address range of 6800-6899 Fisher Island Drive. Confirm that every financial document identifies the correct entity and accounting period.
The shared name makes allocation especially important. Ask counsel to establish which expenses and reserve accounts serve Luna, which serve Palazzo del Sol, and whether any obligations are shared. The name alone does not establish how costs are divided.
Request the declaration, applicable amendments, current budget and unit-specific assessment schedule. A common-element interest of 0.795% is identified for Unit 6871, but that figure does not establish another residence’s assessment allocation. Do not substitute an equal division among 50 residences for the allocation method in the governing documents.
Active corporate status is separate from financial condition. It does not demonstrate reserve adequacy, liquidity or the absence of liabilities.
Begin with the latest year-end financial statements, current interim statements, reserve schedules and supporting bank or custody statements. Request a reconciliation tracing changes in the reserve balance through contributions, investment income, transfers and expenditures.
Distinguish operating cash from reserve assets, then identify restrictions on each reserve category. The question is not simply how much money exists, but how much is available for a particular obligation when payment falls due.
Ask management to identify amounts already committed to approved work, outstanding invoices or signed contracts. A seemingly substantial balance may look different once those commitments are accounted for. Conversely, an upcoming expenditure is not, by itself, evidence of a funding shortfall.
Request a forward cash-flow schedule aligning expected contributions and available assets with anticipated payments. Have the buyer’s financial adviser test an earlier payment date or a higher project cost. These are planning scenarios, not predictions about Palazzo della Luna.
Request the written investment policy, the authorization adopting it and a current holdings schedule. If no written policy exists, ask for a clear explanation of who selects investments, approves transactions and monitors risk.
The review should address permitted instruments, preservation of principal, liquidity requirements, maturity limits, concentration limits and applicable deposit protection. Confirm who holds the assets and which approval controls govern withdrawals or transfers.
For each holding, request its maturity date, current valuation, withdrawal terms and any potential penalty or loss from early liquidation. A stated yield does not establish whether funds will be accessible when a contractor must be paid.
Finally, compare investment maturities with the capital-spending schedule. Ask management to explain any mismatch and identify the proposed funding source. The objective is documented alignment between the association’s obligations and its assets-not a judgment based on headline returns.
Request the current reserve study or capital-needs analysis, available engineering assessments, recent board and owner meeting minutes, adopted budgets and notices of proposed or approved assessments. Ask counsel which additional records and statutory requirements apply to this transaction.
Distinguish work under discussion from work that is approved, contracted or underway. For each material project, request its estimated or contracted cost, funding source, authorization status and anticipated payment milestones. These stages are not interchangeable.
A useful calendar tracks four dates: approval, owner billing, owner payment and contractor payment. Ask whether installment arrangements, financing or changes in scope could alter the buyer’s cash exposure.
Address assessment responsibility explicitly in resale negotiations. Have counsel review the purchase contract, the association’s confirmation of amounts due and relevant notices together. Do not assume that the approval date or closing date alone determines who bears every charge. Refresh the assessment information before closing so the decision rests on current records.
The association-fee benchmark of $1.71 per square foot monthly is not a verified charge for a particular residence. Obtain a current unit-specific statement and identify what it includes, what is billed separately and whether any changes have been adopted.
Separate Fisher Island Club figures include a $350,000 one-time equity membership payment and $23,005 in annual dues. Confirm current amounts, membership terms and transaction-specific applicability before incorporating either into the purchase budget.
A $3,100 annual capital-reserve contribution appears alongside club costs. It is not established as a contribution to Palazzo della Luna’s condominium reserves. Confirm the receiving entity, purpose, current amount and applicability to the residence before drawing any conclusion about reserve funding.
Maintain separate budget lines for condominium charges, any applicable community-association charges, club dues, membership payments and additional capital obligations. Combining them into one ownership estimate too early can obscure which entity receives the money and what it funds.
If The Residences at Six Fisher Island is also on a buyer’s shortlist, apply the same entity-by-entity discipline to the comparison. Do not carry Luna’s fee benchmarks, allocation percentages or club assumptions into another transaction.
Before proceeding, seek three written conclusions from the appropriate advisers: a reconciled view of available reserves, an explanation of investment liquidity relative to projected spending, and a unit-specific account of approved obligations and unresolved proposals. Record the date of each conclusion and any assumptions that remain unresolved.
The goal is not a promise that future capital calls will never occur. It is a purchase decision that distinguishes known costs from contingencies and leaves the buyer with a deliberate liquidity plan. At this level of ownership, financial clarity belongs alongside architectural quality.
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Begin a quiet conversationPalazzo della Luna comprises 50 condominium residences on Fisher Island. The building is 10 stories, with architecture attributed to Kobi Karp Architecture.
The corporate name is Palazzo del Sol/Della Luna at Fisher Island Condominium Association, Inc. Buyers should confirm how the governing documents allocate expenses and reserves.
Current reserve balances and unrestricted cash are not established here. Obtain current financial statements, reserve schedules and supporting account statements before reaching a conclusion.
Neither a pending special assessment nor the absence of one is established here. Request current assessment notices, meeting minutes and written confirmation of unit-specific obligations.
Review permitted investments, liquidity requirements, maturity limits, concentration controls and transaction authority. Compare actual holdings and withdrawal terms with anticipated capital-payment dates.
That is not established. The quoted contribution appears alongside club costs, so confirm the receiving entity, purpose, current amount and unit applicability.
No. It is a marketed average benchmark, not a verified charge for the residence being purchased; request the current unit-specific statement.
Yes, they should be evaluated separately. Quoted figures of $350,000 for an equity membership payment and $23,005 in annual dues require confirmation of current pricing and applicability.
Do not assume an equal allocation. The 0.795% common-element interest identified for Unit 6871 is unit-specific and does not establish another residence’s assessment share.
Have counsel reconcile the purchase contract, assessment notices and association confirmation of amounts due. Refresh the information before closing and explicitly address responsibility for relevant charges.
