Feb 9, 2008

Residents Say Migrant Workers Being Charged More At MetroWest Condos

Residents in a MetroWest neighborhood say landlords are ripping off foreign workers employed at Universal Olrando's cultural exchange program.

Channel 9 found that six to eight people were living inside two-bedroom units at the Azur at MetroWest condos on Raleigh Street. The landlord was charging $3,000 per month for each unit when the going rate for other tenants is only $1,100.

Some neighbors said the overcrowded units are ruining the neighborhood.

"When they are here there's a lot of foot traffic, like a street party or something. People have their doors open. People are drinking," said Keith Tomasek, an Azur resident.

The California-based landlord is accused of several code violations. Universal said it has not yet confirmed a problem, but it pledges to continue reaching out to Azur residents to find a solution.

Source : http://www.wftv.com/

Condo-hotel developers adapt in a cooling Orlando market

International buyers have become the best hope for Central Florida's beleaguered condo-hotel developers, many of whom have truncated or indefinitely delayed their once-ambitious building plans.

During the real estate market's white-hot days several years ago, plans for condo hotels abounded. Projects totaling nearly 15,000 rooms were proposed throughout the region, and developers launched upbeat sales campaigns that promoted hotel rooms and suites as second homes with cash flow attached.

But only a handful of the projects have broken ground. The few that are moving ahead say they are focusing on overseas buyers, pitching their projects as good deals for those who can benefit from favorable currency-exchange rates. Foreign customers are a small group, however, not large enough to keep developments on track.

"We are not unlike everybody else in this market," said Gregory D. Lee, president of Jordan Development Group LLC, which is building WorldQuest Resort, a multi-phased condominium hotel off International Drive. "Nobody is going to move ahead with the program they intended. We are not going to be able to sell or build the volume we expected."

Lee said financing is a big obstacle. In the past half year, he said, the subprime-mortgage meltdown has made lenders skittish. That makes it harder for potential room buyers to find mortgages. Nevertheless, WorldQuest is finishing a 70-unit third phase this spring that will be added to the 170 units already open in what it planned as a 600-unit project.

Many who placed deposits on yet-to-be-built condo hotels two or three years ago were part of an investor frenzy that supercharged the entire real estate market. But as the market cooled, buyers withdrew.

"We had an incredible window open for 12 or 18 months where it seemed like the sky was the limit," said Larry Cohen, vice president of Lake Buena Resort Village & Spa. "It used to be you could get people to just walk in and sign a contract. Now it takes two or three visits and a lot of questions."

Lake Buena Vista Resort Village, which opened last year, continues to build, but at a slower pace. Cohen said 112 units were sold last year -- a third of the project's 2006 total. And prices have been reduced by 6 percent to 9 percent on units that start at $339,000.

Other projects have been less fortunate.

The Lexington, a condo-hotel conversion in downtown Orlando, went into bankruptcy last year and was sold last month. In Celebration, The Related Group closed its sales office last month for what was to have been a $200 million luxury condo hotel.

Developers have marketed condo hotels as vacation homes with advantages. Owners could use the rooms and suites whenever they pleased, but when they were away, the units could be rented, generating income.

Interest in the idea soared for a while, and several very large -- and expensive -- hotel plans were unveiled locally. Two of the biggest -- The Blue Rose on Universal Boulevard in south Orlando and the Palazzo del Lago/Intercontinental Resort and Residences on International Drive -- are still in the planning stage.

"We are finishing our design-development plans with the city," Blue Rose developer Camilo Aguirre said. "We changed the project, but it will have the same number of units."

Aguirre said he expects to close next month on a $1 billion joint venture with a European fund, allowing the 1,300-unit project to move ahead. The Blue Rose continues to market condo rooms, but Aguirre said the focus will be on overseas sales offices and markets in other parts of the United States.

"We are doing seminars in Northeastern cities, educating the snowbirds," Aguirre said.

Developers now plan to break ground on the 1,215-unit Palazzo del Lago later this year, with plans to open in 2010. The developer, Hospitality Development, continues to sell units as condos, but Chief Executive Officer Jerrold Krystoff said his company is no longer relying on condo sales to move ahead.

At Floridays Resort, a condo hotel that opened a first phase last year near Walt Disney World, the sales pitch has also shifted to international buyers.

"Things are going pretty well for us," said Neil Scott, Floridays' vice president. "Part of the reason is that we don't market in the United States at all. We did six [promotional] shows in Europe last year. Knowing where the market is today, we are doing OK. We would like to be doing better, of course."

Source : http://www.orlandosentinel.com/

Feb 6, 2008

Condo Hotels - Ideal Vacation Home for Busy Families

If owning a house was once the tangible evidence of a family having achieved success, today having a second home to visit on vacations has become the ultimate symbol of truly having arrived. But with limited time to spend actually using that vacation home, much less maintaining it, the perfect solution has been elusive.

Enter condo hotels. A new twist on the traditional vacation apartment or family beach house, condo hotels are hassle-free, amenity-rich properties for today´s well-to-do.

"Condo hotels are beautifully-furnished condominium suites located in upscale hotels and resorts," explained Joel Greene, president of Condo Hotel Center, a national real estate firm that specializes in the sale of condo hotels.

"Owners have access to all the wonderful amenities of a luxury hotel -- the pools, restaurants, fitness center and spa. They also get the benefit of all the hotel services like daily housekeeping, valet parking and a helpful on-site concierge. It's all the niceties most people want when they vacation."

Owners of condo hotel units can use their vacation home when they´d like. When they're not there, they don´t have to worry about maintaining it or finding someone to rent it. That´s because an on-site hotel management company takes care of all operational issues, including finding hotel guests to rent the condos.

According to Greene, owners receive a share of the proceeds their unit generates, usually ranging from 40%-60%. By participating in the hotel's rental program, they are more likely to receive a higher level of rental income than they'd achieve trying to rent out the condo themselves. "The hotel usually brings to the table a known brand, international marketing, a reservation system, name recognition and management expertise."

Many condo hotel owners say the option of a formal rental program helps them to justify the purchase of a vacation home. "I hesitated to buy a second home in the past because I knew we would only be able to use it a couple weeks each year," explained Cindy Canton, who recently purchased a condo hotel unit in Orlando. "A condo hotel was ideal for us because when we´re not there, the condo is rented to hotel guests. The revenue it generates helps cover its costs."

Prices for condo hotel units range from $200,000 to upwards of $2,000,000 for top-of-the-line homes. They are usually furnished by a professional designer and include all furnishings, appliances and kitchen items.

Condo hotel buyer, Steve Keeley, said he always wanted a second home for his family but didn´t want to take on the responsibilities of maintaining the property. He remembered the problems his parents faced with their beach house when he was growing up.

"Even though we only used the beach house in the summer, it was a year-round burden. I remember my parents having to deal with everything from burst pipes and rotting deck stairs to fading paint and renters who left the place a mess. I knew I didn't want the additional work and stress."

He said that when he heard about condo hotels, he knew he'd found the vacation home solution he'd been seeking. Keeley just put a deposit on a condo hotel unit at New Oasis at Sea Mist Resort, a to-be-built condo hotel in Myrtle Beach.

Condo hotels are beginning to appear in cities across the country. Some of the most prominent destinations are Fort Lauderdale, Orlando, Las Vegas, Myrtle Beach and the Caribbean. "The concept started in Miami," Greene said, "but it's definitely catching on throughout the U.S. And now we're also seeing condo hotels appear in Canada, Europe and places in the Middle East like Dubai. It is becoming a global phenomenon."

In addition, buyers are coming from all over the world, not just the U.S. W International, a London-based company that markets condo hotels in Great Britain, finds that U.K. buyers are enchanted with the condo hotel concept.

According to Ann Adenius, president of W International, they welcome the opportunity to have a vacation home in the U.S. and are especially enamored with Orlando, Florida. "Over 40% of the condo hotel units sold in Orlando last year were to British buyers," she said. "A condo hotel is perfect for them. They want to go on holiday once or twice a year in the U.S. but do not want to find renters or try to maintain their property from overseas the rest of the time," she said.

Most upscale condo hotels are operated by well-respected hotel companies like Hyatt, Trump, Hilton, Starwood, Sonesta and Ritz-Carlton that are known for their quality and guest services.

"I like to be pampered when I'm on vacation," said explained Merryl Sanders who recently decided to buy a condo hotel unit at the W Las Vegas, now selling in preconstruction phase. "I don't want to cook, clean or entertain the kids. I want to relax. With a condo hotel, my children can play in the pool. I can head to the spa and fitness center. And my husband will enjoy the casino. Everyone is happy."

While having a home-away-from-home is the primary reason for purchasing a condo hotel, some buyers say they like the concept because of its appreciation potential. Places like Las Vegas, Orlando, Miami and Myrtle Beach have seen double-digit increases in real estate values in recent years. Many condo hotel owners in those areas are counting on continued property appreciation. When they sell their vacation homes, they´re hoping to make a substantial profit.

"I bought a condo hotel to diversify my portfolio," said Jose Manerra who purchased a unit at the Kensington Royale condo hotel in Dubai, a place he said he is not planning to spend his vacations. "I was able to buy a five-star condo hotel for under $300,000. I´m looking forward to seeing decent annual returns and an increase in value when I´m ready to sell, probably in a few years."

Now Manerra, who lives in Detroit, says he´s looking for another condo hotel to buy. But this one will be in the U.S. closer to home, one he and his family are able to use as a vacation home as well as an investment.

"I´ve didn´t invest in real estate in the past because I didn´t want to be a landlord and take on all the responsibilities that come with it. A condo hotel gives you all the perks of ownership – a nice place to vacation, rent revenue, and appreciation potential -- without any of the hassles."

To learn more about condo hotels and see property listings, go to Condo Hotel Center, www.CondoHotelCenter.com. The real estate company, based in Miami, Florida, is the global leader in condo hotel sales and offers properties throughout the U.S. and the world.

Source : http://www.americanchronicle.com/

Orlando Condo Owners Not Paying HOA Fees, OUC To Cut Service

More problems are plaguing a downtown Orlando condominium and the city is getting involved to help.

Eyewitness News learned the Metropolitan at Lake Eola is almost $40,000 past due on its utility bills. The Metropolitan's manager said the homeowners association is $120,000 in debt.

The reason, he said, is that 38-percent of the condo owners are either not paying their HOA fees or they're not paying enough.

"The core people that care are paying for those that don't and it's not fair," said Ian Stewart, a condo owner.

OUC said it probably won't cut the power, but there's a chance it will shut off the air conditioning to the building. The Mayor's office said city staff is exploring some options like tax breaks to help the building.

Source : http://www.wftv.com/