Luxury Real Estate

By: Tony Illia
Courtesy of: Bruce Hiatt of Luxury Realty Group

Condo hotels see 'severe' downward drop in value as credit for mortgages disappears

Checks are in the mail for Cosmopolitan Resort Casino homebuyers. On Feb. 23, Clark County District Court Judge Elizabeth Gonzales approved a class action settlement refunding partial homebuyer deposits at the $3.9 billion, still under construction Strip development. The move essentially eliminates residences at the twin tower high-rise complex, on 8.5 acres, at 3700 Las Vegas Blvd., South.

"Many legal experts said a settlement agreement was unlikely, and I'm glad our fight paid off," said Marquis & Aurbach managing partner Terry Coffing, whose Las Vegas law firm represented 100 units. "The refund checks are scheduled to be cut in April."

The 490-unit East Tower settled at 68 percent of homebuyers' deposits, which ranged from $115,000 to $350,000 per unit depending on size and location. Attorney's fees were 7.82 percent of that amount. Escrow deposits typically represent about 20 percent of the final purchase. Homebuyers can opt out of the settlement before March 29.

The deal follows a similar action last year on Cosmopolitan's 1,322-unit West Tower, which returned 74.4 percent of homebuyer deposits. A court settlement ordered the owner to payback roughly $140 million. Marquis & Aurbach had represented owners of 430 units inside the West Tower, or 32.5 percent of the total building. A sold-out East Tower could generate $112 million or more in down payments. Homebuyers had claimed numerous breaches of contract, including unmet completion deadlines. Several lawsuits were eventually combined into a single case.

"Those units have to be 35- to 40-percent upside down. What is the catalyst to now close those units?" said Marquis & Aurbach associate Nick Crosby. "There isn't a credit market for condo hotels."

Cosmopolitan homebuyers have been scrambling to get out from underneath their purchases, as many face challenges securing mortgages amid a frozen credit market. It makes the project's plans for condominiums unlikely moving forward. Plans had called for two glass hotel-condo towers with a combined 3,000 units perched atop a multilevel retail, casino and entertainment podium.

Deutsche Bank AG, which bought the distressed property during a foreclosure sale in 2008, recently wrote down the project value by $103 million. It marks the second write-off in less than a year for the Cosmopolitan. The development is tentatively scheduled to finish construction in December. Perini Building Co. is the general contractor, with Related Cos. the project manager.

Calls to Deutsche Bank spokesman John Gallagher for comment were not returned by press time.

Luxury condominiums are being valued differently today than a few years ago during the real estate boom. Rising unemployment and a deepening recession are fueling more widespread financial conservatism, as once bullish investors delay, defer and cancel large capital expenditures. It has largely seized condominium sales, say industry observers.

"It's probably the most dramatic property drop we have ever seen. We are starting to see 30 percent drops in condo hotel prices. The downward trend has been quite severe. It appears Las Vegas has not yet reached bottom for the hotel condo market," said Bruce Hiatt, owner of Luxury Realty Group Inc., a Las Vegas-based high-rise condominium brokerage company. "Today's buyer is much more aware of the current resale marketplace and those price points, which are very different from what they were a few years ago."

PROJECTS

Las Vegas Paving Corp. recently broke ground on a $246.5 million I-15 widening project from Tropicana Avenue to just south of Silverado Ranch Boulevard in Las Vegas. The design-build project will widen the freeway, add collector-distributor roads and redesign five interchanges. Other work calls for 26 new bridge segments, 35 miles of retaining walls and 1.5 miles of sound walls. The job will employ 70 designers and 300 people during the peak of construction activity. The Las Vegas Convention and Visitors Authority is providing $250 million in bond-backed financing. The project is scheduled to finish in March 2012.

Courtesy of: Summit Sotheby's International Realty

By: Andrew Kirk, of the Park Record

Management calls it one of the most 'grand' of the luxury brand

One of the most anticipated moments of the winter occurred Friday morning when the ribbon was cut on the St. Regis Deer Crest hotel ushering in a new era in which Park City is expected to have a higher profile and greater exposure among the most wealthy vacationers from the Northeast.

Michael Zaccaro, managing partner of the ownership group Deer Crest Janna, said the vision for an internationally-recognized, five-star-brand hotel was inspired by the site itself.

Perched above and to the east of the base of Deer Valley Resort, the site is adjacent to one of the ski runs in the private community of Deer Crest. From below the site can only be seen from a particular angle near the south tip of Jordanelle Reservoir.

With ski-in, ski-out access, incredible views of the Wasatch Back, situated in one of Park City's most upscale communities adjacent to a resort repeatedly voted No. 1 in America by affluent skiers, something like a St. Regis was the only thing deserving of the site, Zaccaro explained Thursday. The ownership group in conjunction with the developers, Stan Castleton and DDRM, chose Starwood Hotels' St. Regis brand because of the large and loyal following it has among elite travelers especially those in the Northeast.

General Manager Michael Hatzfeld said St. Regis is excited to be in Park City because being at the best addresses in the best destinations is core to its values. Deer Crest and Deer Valley is one of those addresses and Park City is one of those destinations.The St. Regis in Aspen, Colo. has been "an iconic ski destination" for the company, but it isn't ski-in, ski-out. Furthermore, the summer activities in Park City are superior to those in Aspen, he said."It's not just a focus on the three or four months of ski season, but the summer months can bring Fortune 500 companies to these destinations," he said.

So as not to overload Deer Crest with traffic, most guests and visitors are brought to the hotel by a funicular starting near the Deer Valley parking lot. A gondola just wouldn't have done, Zaccaro said. The smooth, roomy and unique experience the funicular ride provides is the perfect introduction to the hotel. It was a focal point in the planning process, he said. "It's not that much different than an elevator but far more spectacular," he said. It is the first commercial funicular in the United States, holds 15 people plus luggage and is a 90 second ride that is touted as energy efficient. The views are expansive as well. "Nothing else has the same impact," he said.

Zaccaro said the condominium-hotel industry was "given a black eye" by the start of the recession, but said the financial structure of the hotel is incredibly sound. The committed buyers are closing at a rate that has soothed fears, he explained. At the ribbon cutting, Hatzfeld and Starwood senior vice president of operations Carla Murray both said they had been general managers at the Aspen location and both agreed St. Regis Deer Crest was "a little grander." "This is by far the most spectacular and interesting (St. Regis) I've had the privilege to run in my career," Hatzfeld said. "Count on us," Murray said during her remarks. "We plan to be an active member of this community." Lt. Gov. Greg Bell addressed the crowd at Friday's ceremony and said he considered the hotel to be one of the country's most amazing structures. Conceptually, legally, financially and structurally it is a "remarkable" feat, he said, and called its completion despite the recession "miraculous."

As the hotel and its three competitors (Dakota Mountain Lodge, Stein Eriksen Lodge and The Montage) create more world-class amenities it will garner greater world-wide recognition, Zaccaro said adding, all four hotels are "looking forward to working with each other."

By Ann Adenius of Signature Residences Worldwide

Today’s Phuket is one of the premier destinations for the discerning holiday traveller and second home owners. With a property market that is strong, especially in the exclusive, high-end sector, it continues to draw discriminating property investors seeking extraordinary opportunities. Real estate prices on Phuket are still relatively low when compared with comparable tropical destinations.

Jumeirah Private Island Phuket will offer levels of luxury, privacy and security as yet unseen in the Phuket area. This exclusive resort development is situated less than 500 metres off Phuket Island, at the southern gateway of Phang-Nga Bay, one of the world's most fantastic seascapes. The island is a scenic 5-minute helicopter journey or 20-minute drive and short speedboat ride from the Phuket International Airport. An on-demand 24-hour ferry service connects the island to Phuket’s full portfolio of leisure and lifestyle amenities including world renowned golf courses, fine dining and shopping outlets.

Ownership of property on a completely private island in an idyllic setting has always been perceived to be the ultimate in real estate. There is a certain romanticism about being cut off from everyday modern life and being surrounded by water. It is a symbol of prestige, wealth, and has enormous investment value, largely because islands are limited, the supply can only diminish.

Opulent Jumeirah residences are currently for sale within the development. Revel within your own palatial Jumeirah private residence and enjoy full access to a luxury Jumeirah Resort & Spa together with a super yacht marina and the private members only Jumeirah Private Island Yacht Club. The super yacht marina will have 101 berths and will offer true “super yacht” facilities with 24 hour deep water access. The benefits of berthing in Phuket include fuel, crew and dockage costs up to 80 percent less than Europe and there are no luxury yacht import taxes.

The majority of the Estates rest along the northern coast with stellar views of Phang-Nga Bay; while a few select Estates are positioned on the southern coast and offer direct beachfront access and views spanning the island-dotted seascape. The custom-designed villas present a great range of options incorporated into a single-storey, low-density home that induces the superlative tropical lifestyle.

Prices from THB 120 million. Private homes will be completed from Q2 2009 with the soft opening of the resort Q2 2010 and the official opening set for October 2010.

Homeowners can look forward to enjoying the great stress-free, luxury lifestyle that Jumeirah has to offer.

For further information, contact Signature Residences Worldwide, www.signatureresidencesworldwide.com, email info@signatureresidencesworldwide.com or call +44 20 7095 8703

By Ann Adenius of Signature Residences World Wide

The Seychelles is synonymous with the world’s most beautiful islands and beaches. As nature intended – it’s one of the world’s best-kept secrets and ranks amongst the purest destinations anywhere

Raffles Estates in the Seychelles is a residential paradise consisting of 23 free-standing villas on secluded lots adjacent to a signature Raffles Resort. Situated on 500 meters of stunning beachfront, the resort and estates will be truly unique – private, relaxing, close to nature, yet offering the very best personalized pampering that money can buy and which only Raffles can deliver. Designed to maximize the stunning views of the Indian Ocean with large windows and expansive verandas, these generously apportioned villas will range in size from three to five bedrooms and are priced from €2 million to €4 million.

Raffles facilities available to home owners include: RafflesAmrita Spa – Raffles’ Signature Spa, Fitness Center, Beach Clubs, On-Site Restaurants & Lounges, Sugar Palm Kids Club, Infinity-Edge Swimming Pools, 24-Hour Concierge and On-Site Property Management.

Raffles Estates seeks out the most spectacular expanses of land suited to the grandest villas and mansions, offering the ultimate experience for those impassioned to enjoy the privileges of a Raffles lifestyle with full private ownership.

By Jim Walberg
From his blog: Caribbean Fractionals Expanding To Botany Bay Resort!

St. Thomas, USVI is the location, and the former Preserve At Botany Bay is the spot!

Caribbean fractionals continue to be THE real estate choice of thousands of Caribbean buyers. Last week David Burden – founder and CEO of Timbers Resorts – announced that the ultra-luxury resort located on the western tip of St. Thomas will be managed by the international hospitality management group – Jumeirah Group, which is a member of Dubai Holding. This announcement was made at the signing ceremony with Gerald Lawless, Executive Chairman of Jumeirah (Remember my past article about the Virgin Islands fractional market?).

“We selected Jumeirah as the ideal hotel company to partner with at this unprecedented resort on the secluded western tip of St. Thomas,” remarked David Burden. “Based on their internationally renowned hotel experience in luxury service, they will be a perfect match for our discerning owners and resort guests.”

Jumeirah Botany Bay Resort is one of the true world-class luxury resorts which include mashed-potato sand beaches, private coves to explore, protected coral reefs and a nature conservancy, ultra-fine dining, a beach club as well as a Talise Wellness Spa.

Jumeirah Group will manage the five-star luxury hotel of 84 rooms, spread over nine tropical buildings in a very secluded setting on St. Thomas’ western shores. Scheduled to open in 2011, the 400-acre resort will also include 30 fractional residences, 30 whole-ownership villas and 20 grand estates. These full-service residences will be managed by Jumeirah Living, combining the luxury of a prestige hotel with all the privacy and comforts of your home away from home.

Jumeirah Group is also in the midst of ultra-luxury resort developments in Phuket, Shanghai, Argentina, Mallorca, London, Dubai, Abu Dhabi, Doha and Jordan, among others. “We are impressed by Timbers Resorts’ commitment to responsible development and the care with which they intend to develop this protected enclave,” said Gerald Lawless, Executive Chairman of the Jumeirah Group. “With its secluded location in a tropical environment, the Jumeirah Botany Bay Resort will be true to our ‘STAY DIFFERENT’ promise.”

Timbers Resorts is a world-class developer that we have enjoyed working with in serving our client’s needs. The Timbers Collection is a group of small, private, luxury resort properties in the world’s most sought-after ski, golf, beach and scenic countryside locations. They include One Steamboat Place in Steamboat Springs, Colorado; Botany Bay Resort on St. Thomas in the USVI; Castello di Casole in Tuscany, Italy; The Rocks Luxury Residence Club in Scottsdale, Arizona; Esperanza Resort in Cabo San Lucas, Mexico; The Timbers Club in Snowmass, Colorado; and there latest is The Orchard at The Carneros Inn in Napa Valley.

For further information regarding Botany Bay Resort, or any other of the Jumeirah and Timbers Collection, contact me today! We are standing ready to serve any of your luxury real estate needs around the world! I look forward to speaking with you soon.


Editor’s Note:
Jim Walberg is the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville. He is also a member of the global Luxury Real Estate network. Jim is an exceptional blogger, as you can see by visiting his blogs, East Bay Real Estate and Caribbean Islands Realty, and reading his great blog entries like the one above. He is the master of fractionals and other luxury homes in the Bay Area and the Caribbean, and he always has a lot of great opportunities to share. Hmm… Botany Bay. You know what that reminds me of? Call me crazy, but Botany Bay brings to mind Khan Noonien Singh, the famous villain in one of my favorite films of all time, Star Trek II: The Wrath of Khan. As Khan would say: Ah, Jim Walberg… my old friend. Do you know the proverb that says vacations are a dish best served warm? It is very warm and pleasant… in the Caribbean! Feel free to nerd out in the Comments section if you know what I’m talking about.

By Jim Walberg
From his blog: Palmetto Bay Resort in Belize Continues To Feature “Green Development”

This boutique luxury resort on the Placentia Peninsula is a trendsetter when it comes to its “Green Features”!

Palmetto Bay Resort is one of the leaders of “green” Caribbean developments in Belize. This luxury resort has integrated into its design certain features that other developers are watching closely. Palmetto Bay Resort has carefully considered its impact on the environment from the earliest planning stages of its development. Some of the features they have implemented are:

- Geothermal cooling and heating technology.

- Solar power for outside illumination – pathways, water features, landscaping and the beach.

- Grey-water systems to recycle water.

- LED lighting that will reduce energy costs by as much as 80 percent.

- Indigenous species of plants, including fruit trees, in the landscaping.

- Cisterns to catch and store rain water and act as a renewable water supply for the saline pool, water features and landscaping.

- Strategically implemented wind power.

This gated project has plans for around 120 full-ownership condominiums. The initial phase that has just been released has 36 whole-ownership Caribbean beachfront condos starting in the low $300,000s US and they are currently the most sought-after resort luxury real estate for sale in Belize. It is just a short two-hour flight from Houston or Miami to Belize where there are no restrictions on foreign ownership of property or capital gains tax. This is a project you may want to put on your list for your piece of paradise! They even just announced a fly-in package for people who want to seriously consider this as their next tropical home.

OK… so how is this for a description of what Palmetto Bay Resort has created? As you walk into your Caribbean condo you first notice a wraparound veranda overlooking the turquoise-blue Caribbean Sea. What I immediately do is dump my watch and find my bathing suit. The temperature is around 85 degrees Fahrenheit with a delightful warm breeze, and I then head to mashed-potato coral sand. Then the stress really starts because a decision needs to made: sunbathe; snorkel, SCUBA dive; drink… because thirst is a dangerous thing; read; nap; eat; schedule a jungle tour checking out how many Toucans I can spot, and many more choices to consider. Here is the fun part – I get to do it ALL! My first task is to take out the cold beer in the fridge and head to a lounge waiting for me on the beach. All the rest of the remaining choices will show up in their proper order… actually, there is no proper order. This mindset is the way I get to “Caribbean Time” as fast as possible.

Here is more good news for those you intrigued about buying luxury property in Belize. Belize has made owning real estate very simple and easy with some of the most advantageous offshore investment legislation in the world. The official language in Belize is English, and the legal system is based on English common law. Belize has no capital gains tax, no inheritance, estate or probate taxes and no restrictions on foreign ownership of property. The ease of air travel to Belize from the U.S., Canada, and the U.K. is effortless compared to many of your choices for other tropical destinations.

Finally… you will discover a country of diversity! It has a very wide variety of ethnic backgrounds that live together in a marvelous melting pot, each adding to the cultural color of the next. Belizeans are some of the friendliest people in the world. They are a cross-pollination of cultures – ancient Mayan people, Spanish, British, African roots, Mexican, Chinese, Japanese, Lebanese and Indian influences, AND the official language is still English. This is one of the special Caribbean destinations that you will want to put on your “must-see” list. Let me know if you want more information about my favorite spots. Until next time… fair winds!


Editor’s Note:
Jim Walberg is the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville. He is also a member of the global LuxuryRealEstate.com network. Jim is an exceptional blogger, as you can see by visiting his blogs, East Bay Real Estate and Caribbean Islands Realty, and reading his great blog entries like the one above. He is the master of fractionals and other luxury homes in the Bay Area and the Caribbean, and he always has a lot of great opportunities to share. Jim always has many awesome opportunities to share. He’s a great blogger, and I always learn a lot when I read his work. I just finished writing an editorial for the winter 2009 issue of LuxuryRealEstate.com Magazine on “green” luxury homes. It was a very educational experience, and I’m glad to see these properties becoming popular as energy prices increase dramatically.

By Jim Walberg

From his blog: Tierra del Sol Expands Aruba’s Fractionals In The Caribbean Real Estate World!

NEWS FLASH: The most beautifully planned development in Aruba is about to offer fractionals!

Tierra del Sol – the only planned community in the Caribbean, with the Trent Jones champion golf course – is launching a fractional project to go along with their beautiful development that includes homes, villas, condominiums, golf, spa & fitness, fine dining and much more. At the northwest tip of Aruba, has emerged a gorgeous 600-acre community offering a lifestyle to satisfy even the most discriminating of owners and world travelers. With today’s planned lifestyle, Tierra del Sol gives you the opportunity to purchase the home of your dreams just a chip shot away from the green, even if you are not an avid golfer.

This private community offers a remarkable experience within a meticulously planned and highly acclaimed environment. Homeowners and vacationers experience world-class amenities, including fine and casual dining, a full-service spa, fitness and full-care beauty salon, lighted tennis complex and unlimited greens at a championship golf course, displaying its own challenging version of Robert Trent Jones II – the only professional golf course on Aruba.

The tranquil setting provides a gracious lifestyle amid some of the most beautiful views of the Caribbean. Custom homes, villas, casitas and home sites accommodate a wide variety of expectations for your personal lifestyle. Homes at Tierra del Sol incorporate distinctive design features, tailored to the desert surroundings and complementing the natural beauty of the landscape, creating an inspiring and peaceful environment within this beautiful private community.

Body & Soul is a sanctuary amidst the finest displays of nature. Nourish your body, revitalize your mind and enhance your well being with a journey to vitality. Pamper yourself from head to toe. Their spa treatments are designed to ease tension and restore balance to your body and spirit. The spa’s professional staff offers a variety of therapies, including massages, body wraps, skin and body treatments, aromatherapies, hydrotherapy, manicure and pedicure and a newly opened full-service hair salon.

As you know, each time I get off a plane in the Caribbean, no matter what island it is, the words that go through my brain are, “Welcome Home!” That is the experience you will have when you arrive at Tierra del Sol. For more information about pricing, contact me! Until next time…fair winds.


Editor’s Note:
Jim Walberg is the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville. He is also a member of the global LuxuryRealEstate.com network. Jim is an experienced blogger, as you can see by visiting his blog, Caribbean Islands Realty. Feel free to submit your blog entries and comments to the LuxuryRealEstate.com Blog.

By Jim Walberg

From his blog: Caribbean Islands Real Estate Developments Continues to Focus on Belize!

The Placencia Peninsula, an 11-mile strip of land sandwiched between the Caribbean Sea and the Placencia Lagoon in Belize, has beautiful white sandy beaches and – because of its distance from the reef – it also has “real” surf. The water is clean and clear; the trade winds gentle and cooling.

Remember that Belize has a stirring and lively history beginning in 200 B.C. with the ancient Mayans. In the 17th century Spain settled the country. It then survived war, piracy and slavery until being declared a British colony – British Honduras – in 1871. It gained self-government in 1964, chose the name Belize in 1973 and became an independent member of the British Commonwealth in 1981.

The beaches along the Placencia Peninsula are dotted with small resorts that can easily arrange dive and snorkel trips to the reef, which is about 17 miles away. They can also arrange day trips to many small, idyllic cayes, such as Laughing Bird Caye, a mini-atoll that offers protected snorkeling and swimming, a white sand beach and many cooling palm trees (it even has hammocks!) Laughing Bird Caye is also a favorite camping site for reek kayakers who base their expeditions in Placencia. A hotel can also arrange deep-sea or reef fishing trips, or day sailing on a 57-foot catamaran.

Placencia, along with Ambergris Caye, are now two of the country’s main tourist destinations, and they are also well-visited by Belizeans from across the country on local holidays. You can get a delicious plate heaped with stewed chicken, rice and beans for about $4 USD. There are also several small gift shops, a post office and some night life. Nearby Mango Creek/Independence Village also has a disco and weekend activities.

Another new resort is planned for Belize – The Palmetto Bay Resort at Maya Beach being developed by Dave Bowman and his exceptional team. It is located on Placencia Peninsula it will offer beachfront real estate and Four-Star amenities and will be the first development in the Caribbean designed “green” from inception to completion.

The first phase of the gated resort, which is currently under construction, will be comprised of 36 whole-ownership, luxury beachfront condominiums ranging from approximately 1,100 to 4,500 square feet, each with open views of the Caribbean. (In a perfect world, I would be talking with Dave about offering some of their units as fractionals.) Prices will start in the low $300,000s. The turnkey one- two- and three-bedroom residences are spread through two low-rise buildings. Designer Julieanne Dobson also worked on Francis Ford Coppola’s Turtle Inn in Belize. He is creating the interiors using warm woods and natural stone, vibrant contemporary textiles, and niche-lit Mayan and African-inspired art.

Ownership at Palmetto Bay Resort will include access to fitness facilities, conference rooms with wireless Internet; 24-hour reception and security; fully equipped luxury kitchens with gourmet utensils and stainless steel appliances; balcony barbecues; and lush, mature landscaping with use of indigenous fruit trees and plants. The property will feature a 300-foot oceanfront infinity pool, a 400-foot private beach, beach boardwalk, and private dock.

We have been telling you about Belize and the many awesome opportunities for second and third home ownership for months! It is now time to act. Let me know if you are ready!


Editor’s Note:
Jim Walberg is the co-Broker/Owner of The Bay Area Team, the most-successful team at Keller Williams Realty-Danville. He is also a member of the global LuxuryRealEstate.com network. Jim is an experienced blogger, as you can see by visiting his blog, Caribbean Islands Realty. We welcome your blog entries and comments in the LuxuryRealEstate.com Blog.