1618-16 Condo Hotels suit getaway crowd Key Biscayne
198 units. 198 sold.
$200, 000-$1.1 million
Roney Palace
Miami Beach
567 units. 375 sold.
$189, 900-$509, 900
The Setai
Miami Beach
180 units. 91 sold.
$715, 000-$10 million
Spa Atlantis Ocean Resort
Pompano Beach
89 units. 84 sold.
$225, 000-$456, 990
St. Regis
Fort Lauderdale
29 units. 27 sold**
$1.7 million-$5.4 million
NOTE: Base sales prices. Sales as of June 2001.
SOURCE: The Meyers Group, Fontainebleau and St. Regis.
CAPTION: JARED LAZARUS/HERALD STAFF IN MIAMI BEACH: Leo Ickowicz, of Elite
International Realty, in the lobby of Capri. Unlike timeshares, Capri uses
in-house management. On facing page, a rendering of the Fontainebleau II.
DAVID BERGMAN/HERALD FILE ACQUALINA: A model of the condo-hotel in Sunny
Isles.
TOP TIER: At the St. Regis in Fort Lauderdale, private units are kept
separate from the hotel and never rented out for public use.
PERKS: John Centralia, above, bought a condo at the Roney Palace in Miami
Beach because he likes the idea of living in a condo with hotel amenities. At
The Setai, right, the perks include a restaurant, bar and lounge.
KEYWORDS:
TAG: 0108250248
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mh CONDO HOTELS SUIT GETAWAY CROWD 06/18/2000
THE MIAMI HERALD
Copyright (c) 2000, The Miami Herald
DATE: Sunday, June 18, 2000 EDITION: Final
SECTION: New Homes PAGE: 1H LENGTH: 123 lines
ILLUSTRATION: color photo: The Mutiny (a) ; photo: The construction on the
Mutiny Park (a) , Steven Perricone (a)
SOURCE/CREDIT LINE: BY RICHARD WESTLUND, Special to The Herald
MEMO: see microfilm for South Florida Condo-Hotels
CONDO HOTELS SUIT GETAWAY CROWD
Steven Perricone was looking for a weekend getaway from the hectic business
world. The 45-year-old Miami resident, who owns Perricone Marketplace and
Cafe, wanted a well-appointed, affordable second home on the ocean.
A few years ago, Perricone might have had to choose between a high-priced
luxury condominium or a relatively inexpensive time-share unit that gave him
the right to stay on the beach for just a week or two each year. But
Perricone, like other South Floridians and international buyers, chose a third
alternative: buying a "condo-hotel" residence.
Unlike the owner of a time-share, Perricone will own his unit in the Ritz
Carlton Key Biscayne when the resort is completed and can use it as often as
he wants. At other times, he can rent out his unit, paying for part of the
cost.
"I think Key Biscayne is great, " says Perricone, who bought a convertible
studio unit with a small kitchen for less than $200, 000 at preconstruction
prices. "I 'll probably rent out my unit from time to time, but mostly I plan
to use it for myself. "
VALUE COUNTS
A combination of waterfront setting, resort-style amenities and affordable
prices have made these "getaway" projects a hit with local and international
buyers. Developers find their buildings typically sell faster than traditional
condos because the smaller units have lower prices.
Although marketed as ''condominium hotels, " most South Florida projects
are more accurately described as condo residences with hotel services. A true
condo-hotel, like Fortune House Condo-Hotel in Fort Lauderdale, limits owners
to no more than 120 days a year.
But for local and international buyers, the distinction is largely a
technicality, since units range from 400 square feet to 1, 000 square feet -
too small for year-round occupancy. Instead, "condo hotels" appeal to buyers
who want a resort experience.
"A lot of people like a second home on the ocean with all the hotel
amenities, " said Douglas Weiser, president of GB Hotel Partners, which is
developing the Ritz Carlton Key Biscayne, a project with 188 condo hotel units
and 300 regular hotel rooms that is expected to be completed next March.
"About 20 to 30 percent of our buyers are locals who plan to use it on
weekends. On Friday afternoon at 4 p.m., you don't have to drive to Palm Beach
or Naples. It's a simple getaway. "
TRANSIENT CROWD
Most buyers at Ocean Point, a new 168-unit development in Sunny Isles
Beach, are from Europe, Canada and Latin America, according to Ileana
Caballero, vice president of sales and marketing for Coscan Homes.
"This is a market for people who spend a short time in Florida and want to
have a place to stay without having to worry about anything, " she said. "We
have a beach club, restaurants, business center and full spa and fitness
center. "
All but eight of the 168 units in Ocean Point have been sold, and the
building is expected to be completed by year-end.
Also in Sunny Isles Beach, developer Gil Dezer, of Dezer Properties, is
starting construction on Ocean Grande, a 372-unit development that will be
managed by Sonesta International Hotels. The building is scheduled to be
completed in summer 2002. About two-thirds of the units have been sold, Dezer
said. North Americans make up about one-third of buyers, with the balance from
Europe, Asia and Latin America.
"This investment potential is a big factor for our buyers, " Dezer said.
"The condo-hotel concept allows them to buy the second home they always
wanted without having to pay all the expenses. Most of our buyers plan to put
their units into our rental program and hopefully earn some income. "
NEW RESIDENCE
To maximize the beachfront hotel services at Ocean Grande, Dezer is
planning a second building, Residences at Ocean Grande, with, regular
condominium residences priced from $300, 000 to $2 million.
"It can be hard for South Florida condos to sustain hotel services without
enough residents living there year-round, " Dezer said. "This way, buyers can
have everything next door. "
On State Road AlA in Fort Lauderdale, Fortune House Condo-Hotel has sold
100 of its 278 units in just two months, according to sales director Bozena J.
Kaluza. "With all the services we offer, buyers can enjoy it as a hotel stay
or rent it out, " she said. "That's really a great advantage. "
Fortune House has a mixed buyer profile, including local residents,
snowbirds and international owners, Kaluza said. "Our buyers are looking for
a vacation home, especially the snowbirds who plan to spend two to three
months of the year here, " she said.
On South Beach, Riccardo Olivieri, president of BOV Development Corp. , is
following up on the success of the Bentley, a 53-unit high-end condo-hotel
completed in December 1998, with the Bentley Beach Condo-Hotel, a 98-unit
project at 101 Ocean Dr.
About 65 percent of the units have been sold to a 50-50 mix of domestic and
international buyers, said Olivieri. Affiliated with the Italian luxury hotel
chain, Charming Hotels of the World, Bentley Beach will offer —five-star"
quality to buyers who come to Florida five to 10 times a year.
Developer Ricardo Dunin, head of The Flagler Group, introduced the
condo-hotel concept to South Florida two years ago at the Mutiny in Coconut
Grove. Now, he is building Mutiny Park next door. About 60 percent of the 224
units have been sold. The building is scheduled to be completed next October.
"The Mutiny, which was finished last year, had been a successful hotel, "
said Dunin. "That indicated there was demand for a hotel use. At the same
time, a lot of people want an apartment in Miami, but don't use it all the
time. Those two types of demand led to the condo-hotel concept. "
Dunin said about 25 percent of buyers are South Florida residents. —If
you're single, it's a great place to meet people, " he said. —In Brazil, if
you get divorced, you go to live in a condo-hotel, where this concept has been
around for a long time. "
Other buyers like the investment potential, Dunin added, as well as the
income-generating possibilities. While Dunin skid he might consider building a
third condo-hotel in the Grove, he doesn't want to rush ahead just yet.
"This type of product gets more attractive with time, as people become
more familiar with the concept, " he said. ' 'By waiting a little longer, we
will probably have an easier time with the marketing. "
CAPTION: TIM CHAPMAN / HERALD STAFF CONDO BOUNTY: The Mutiny in Coconut
Grove is the brainchild of developer Ricardo Dunin, who introduced the
condo-hotel concept to South Florida two years ago. The Mutiny Park next door
is scheduled to be completed next October.
TIM CHAPMAN / HERALD STAFF BREEDING SUCCESS: Construction of the Mutiny Park
is scheduled for completion in October. About 60 percent of the 224 units have
been sold. Its sister condo hotel, the Mutiny, opened in 1999.
PATRICK FARRELL / HERALD STAFF A STUDIO: Steven Perricone, owner of
Perricone Marketplace and Cafe, paid less than $200,000 for his Ritz Carlton
Key Biscayne unit.
KEYWORDS:
TAG: 0006220233
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