Has Hotel Investment Reached Its Peak?

By Sunny Isles Real Estate Expert on November 24th, 2014

Diplomat Hotel Hollywood Florida

Hotel investment in South Florida has reached fever pitch. For some time now, it’s been one of the most sought after additions to a portfolio, as well as one of the most lucrative investments out there. However, things might be changing. There are signs that the sector has not only hit its peak, but begun the backward slide. The recent sale of the Diplomat hotel in Hollywood, Florida, might be the stop sign that potential investors need to heed.

The Scale of the Sale

In terms of price, the Diplomat’s price and accompanying expenditures were very, very impressive. The property was sold for $460 million to Thayer Lodging Group. In addition to that, the company spent another significant chunk of change on land around the hotel, as well as a golf course – to the tune of $75.5 million. Then there’s the additional investment of $100 million the company is planning to make improvements to the property and guestrooms. All told, the purchase will actually cost Thayer $635.5 million, making it one of the most expensive ever seen in South Florida.

The End of It All?

Experts are saying that despite the unprecedented scale of the sale, this might be a sign of the end. One reason for this is that the number of available hotel properties has dropped significantly through purchases and other transactions. There are very few properties out there that could match the Diplomat in cost per room anyway. That doesn’t mean that the entire hotel industry in Florida is on the brink. Just that South Florida might not be the ideal market for comparable investments or purchases. There are a number of similar properties farther north, though.

How the Diplomat Will Play Out

There’s a lot of interest in the upgrades and additional value that Thayer will add to the Diplomat with the expected $100 million. In terms of features, the Diplomat certainly wasn’t lacking in the first place, which means that the investor has their work cut out for them in terms of adding value to the property. One change that’s already been announced is the rebranding of the hotel. Currently, the Diplomat is part of the Westin family of properties. However, Thayer has announced that the Westin moniker will be dropped in favor of the new Diplomat Resort & Spa, and it will become part of Hilton’s Curio portfolio.

That move worries some experts in the area. Curio has only been around for a few years, and lacks the name recognition of Westin, or even other Hilton brands. Thayer could be “shooting themselves in the foot” with the rebranding efforts, although only time will tell which side of the argument potential guests fall on. With that being said, most travelers rely on branding to tell them what to expect from a property. A hotel with an unknown name, regardless of the power behind that name, stands to lose out to properties with better recognition.

The Priciest Condos in Hollandale and Hollywood Florida

By Sunny Isles Real Estate Expert on October 28th, 2012

South Beach Condos For Sale

South Beach Miami Condos For Sale

The new Hallandale Condos and Hollywood Florida Condos

have reputations as luxury real estate markets and, they more than live up to that reputation. The prices of some condominiums reflect this market more than others do and, to illustrate that, here are the 10 highest prices for condominium resales that went through between April 2012 and June 2012.

According to data, the priciest condominiums were as follows. With the exception of 2 units, denoted by asterisks, they were all located in the Hollywood Beach area. The other sales were both in the Hallandale Beach area. The sales are listed from least to most expensive.

· Beach Club I Hallandale 3-bedroom unit for $900,000*
· Diplomat Residences 3-bedroom for $950,000
· Beach Club II Hallandale 3-bedroom for $955,000*
· Villas of Positano 2-bedroom for $1,000,000
· Ocean Palms 3-bedroom for $1,025,000
· Diplomat Ocean Residences 2-bedroom for $1,060,000
· Diplomat Oceanfront Residences 3-bedroom for $1,383,000
· Trump Hollywood 3-bedroom for $1,800,000
· Diplomat Oceanfront Residences 3-bedroom for $1,800,000
· Villas of Positano 3-bedroom for $2,035,000

The prices of these condominiums has actually gone down on the average compared to what they were originally listed for, but the prices are obviously still well into the luxury range and make them interesting to investors.

Despite the impressive prices for these properties, they were all offered at a discount compared to their original asking prices. The #1 spot, in fact, at Villas of Position came at an 18% discount compared to the original asking price. Even at the luxury end of the real estate spectrum—the most luxury end—it is still a buyer’s market in many regards.

Sales in the areas listed and for south Florida on the whole remain steady. While there is some nervousness in the market overall, the real estate market does seem to be well on its way to a recovery. In addition to these pricey condominiums, there have been quite a few investors making their ways back into Florida’s real estate market and they have been eager to acquire properties. A combination of international factors and low interest rates has contributed to this.

Luxury Properties in South Florida

Many of south Florida’s more desirable properties are luxury condominiums and this hasn’t been lost on investors. There are numerous projects in the works at present and, though some may have written off the south Florida real estate market only some years ago, it’s become an attractive place to invest—and live—again.

All of these prices came with discounts, which is important if you’re looking for a new home and you want to make sure you get a good deal. Even at this level of luxury, there is room to negotiate prices and prices may actually be reduced on their own compared to the original offer. If you’re in the market for luxury property, remember that the price you see advertised may well be subject to change with a bit of negotiation or with a bit more time on the market and that can make even very expensive condominiums attractive buys, indeed.

South Florida Is In Construction Phase Once Again

By Sunny Isles Real Estate Expert on February 11th, 2012

Miami real estate

Hallandale preconstruction condo

The latest report from Miami Herald (http://www.miamiherald.com/2012/02/08/2631956/construction-spending-finally.html) indicates that the construction spending in South Florida rose for the fourth month in a row in Broward County in November 2011, joining Miami-Dade County as areas with sustained growth in the real estate sector. “We’re seeing a lot of custom-home building,” said Bernie Navarro, head of the Latin Builders Association. “You see it in Key Biscayne and Coral Gables and Pinecrest. Those places had fallen to zero. Now they’re back on.” While construction employment is falling, the losses are more narrow than previously. “It’s going better than I expected six months ago,” said David Denslow, an economist at the University of Florida. “Remember, six months ago we were worried about a double dip. Now all of the evidence is pointing the other way.”

The Hollywood and Hallandale Condo resales

jumped in 2011 as well. Buyers purchased an average of 140 condominium units per month in the Hollywood and Hallandale Beach areas showing an increase in 2011 of nearly 20 units per month from 2010. This is due to the influx of investors chasing discounted condo resales that can be leased out to tenants who are willing to pay higher rents.

Latest report indicate that office vacancy in Miami-Dade County was at 19.1% at the end of 2011, according to data from CBRE Group’s Florida Market Perspective 2011. There was a total of 44.1 million rentable square feet in the county, and 8.4 million vacant. Last year saw net absorption of 64,238, with 359,630 square feet under construction, with the average asking lease rate in the county at $30.32. “The Miami office market has gained strength during 2011 with tenant activity picking up,” said Carter Hopkins, first vice president at CBRE. “The market should continue to strengthen in 2012.”

In addition to single family homes in Miami

the pre-construction condo sector is also on the rise. Fueled by steady pre-sales at the nearby Apogee Beach Hollywood condo, Jorge Perez of the Related Group is planning a new 31-story tower with condo and hotel units fronting the Intracoastal Waterway in the Hollywood nad Hallandale Beach coastal market of Southeast Broward County.

Despite the unsold inventory, the Related Group broke ground on the 23-story Apogee Beach condo tower on the sand just north of Hallandale Beach Boulevard in December 2011. As of Jan. 30, 2012, buyers have committed to purchase 41 out of 49 units in Apogee Beach project, according to company marketing material.

The path to development for the proposed Beachwalk tower – a few blocks west of the Apogee Beach project – is shaping up to be a bit more complicated initially. The proposed Beachwalk tower – which would stand 305-feet high with 84 residential units and 432 hotel rooms. Beachwalk is the 22nd project to be proposed east of Interstate 95 in South Florida. If they are all built, the projects would add nearly 4,400 units into a market that had 4,200 developer units unsold at the end of last year.

A Related affiliate bought the Beachwalk development site, home to Manero’s Steakhouse for five decades, for more than $2.9 million from TD Bank in May 2011. The Beachwalk project is slated to cost $60 million to construct and have a market value of $80 million at completion.

Related is also planning to start construction in two weeks on its MyBrickell condominium in Miami. To date, about 80 percent of the 192 units are under contract, with buyers paying a 20 percent deposit, the company said. It would be the first new condominium project to break ground in downtown Miami in several years.

Developers seeking to launch new condo projects are focusing particularly on the high-end market, which continues to dominate because of the ability of its prospective buyer pool to pay cash for units. The 70-unit Bellini Williams Island – a high-end condominium in Aventura’s William Island recently broken ground.

Hot Condo Deals in Hollywood and Hallandale Florida

By Sunny Isles Real Estate Expert on May 11th, 2010

Hollywood Condos for sale

Hallandale Fl condos for sale

Hollywood real estate

and especially brand new luxury ocean front condos offer care free living on the ocean with top of line amenities. Due to economic downturn the prices in Broward county have dropped significantly. However, because of enormous popularity, location and demand, these condos sell very well and currently present a great opportunity to buyers.

Diplomat Condo Hollywood Fl

This beautiful 28-story residential tower offers spacious two and three bedroom units, spectacular views of the Ocean or Intracoastal Waterway, and a wide variety of amenities. Residents have access to a spa and a picturesque private beach. Nine-foot tall ceiling, floor to ceiling windows, custom designed bathrooms and kitchens, and state of the art designer fixtures and appliances offer the ultimate in luxury living.

Two, three and four bedroom residences at The Diplomat Hollywood are now available at price reductions of 10% or more. Units start at just $239 per foot, an incredible Hollywood deal.

Ocean Palms Hollywood

This incredible oceanfront condominium offers residents nearly 250 feet of beach frontage, state of the art amenities and a full range of luxury services. An incredible pool and sundeck, a fitness center, and spacious, lavishly designed residences offer the utmost in luxury living.

There is a variety of reduced priced units available at Ocean Palms condo today. Price reductions of 10%, 11% and even more represent impressive deals on Hollywood oceanfront residences.

Beach Club Hallandale

This property features incredible amenities such as an elaborate pool area with several pools, top notch fitness center, sauna and steam rooms. It is no accident that The Beach Club I boasts Broward County’s finest condominiums. If you want to buy a condominium in Florida, come and see what makes The Beach Club complex stand out from the rest.

Today there are three great deals available in all three towers of Beach Club. Two 2-bedroom and one 3-bedroom residence are now being offered at price reductions of more than 40%.

Hollywood Diplomat Residences – Luxury and Comfort in Hollywood

By Sunny Isles Real Estate Expert on August 20th, 2008

Diplomat Residences Condos For Sale & For Rent
Diplomat Residences Hollywood

The Diplomat Residences Hollywood is an incredible

departure into luxury. This fantastic building soars 28 stories into the sky and features 135 condominium units. Each unit offers stunning views of the Atlantic Ocean, as well as the Intracoastal Waterway. In addition, you will enjoy some of the most sumptuous amenities on property.

What does the Diplomat Residence offer?

You will find six distinct floor plans from which to choose, as well as numerous amenities in each. All residences offer 9 ft. ceilings, fully equipped kitchens and baths, state of the art appliances, walk in closets in master bedrooms, granite counter tops in the kitchen and marble countertops in the bathrooms. Floor to ceiling, coated windows provide incredible views of the pristine waters of the Atlantic, as well as the beauty of the bustling Intracoastal Waterway. Whirlpool tubs, beautiful marble floors and much more make each residence incredible.

Three bedroom, 3 ½-bath floor plans

and two bedroom, 2 ½ bath plans make up the offerings. You will not find single bedroom units or studios; these condos are designed to provide you with the spacious accommodations that you and your family require in order to live in style and comfort. Only six residences on each floor mean that you have the most space possible, as well as the quiet atmosphere that you want. In addition, the entire 28th floor is a single, enormous penthouse, providing a bird’s eye view of the surrounding area.

The property

itself, offers you numerous amenities designed to maximize your enjoyment. The Owner’s Theatre is an incredible option, while the state of the art fitness center will keep you in top shape. The full service spa is the best place in Hollywood in which to relax, while the outdoor pool complex is not only stunning, but fun, as well. The Westin Diplomat Resort & Spa is nearby, offering owners even more benefits and ways in which to relax. For additional enjoyment, head to the private beach or explore the manicured grounds; you will find tropical plants in profusion, offering shade and privacy, as well as beauty for a simple stroll.

The Diplomat Residences

is the newest luxury condominium among Hollywood Florida real estate and provides you with the opulent accommodations that you demand. With the stunning rooms, the best views and immediate access to the beach and the city of Hollywood, there is no better place for your enjoyment.

See what’s on the MLS currently available for sale and for rent in Diplomat Residences Hollywood Florida