The Real Deal Miami

1 Hotel and Homes registers in New York to sell condos

23 condos remain: 17 penthouses and six units on floors 9-15, priced from $1.7M to $18.5M

July 22, 2016 03:00PM
By Ina Cordle

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1 hotel and richard lefrak

1 Hotel and Homes unit 1708 and Richard LeFrak

Hoping to unload its remaining condos — and capitalize on Northeasterners’ hankering for oceanfront Miami Beach pied-à-terres — 1 Hotel and Homes has registered its units for sale in New York, The Real Deal has learned.

Developed by Starwood Capital and LeFrak, 1 Hotel and Homes has 23 condos left, including 17 penthouses and six other units, among 150 that were originally for sale, Michael Tillman, managing director of LeFrak, told TRD. Prices range from $1.7 million to $18.5 million for a duplex penthouse.

Although the New York Attorney General’s Real Estate Finance Bureau’s website has not yet recorded its approval of 1 Hotel and Homes’ request to market and sell its units in New York, a letter to 1 Hotel and Homes, obtained by TRD, shows the request was approved.

“The buyer demographic really fits with New York, and with two New York-based development companies, we thought it was the right time to actively market directly to New Yorkers,” Tillman said.

Despite the slowdown in the Miami luxury condo market, as economic turmoil and foreign currency fluctuations have dampened sales, Tillman said 1 Hotel and Homes has not been affected. The move to register in New York was not due to a slump in foreign sales, he said. In fact, the project has “seen an uptick in foreign interest, especially from South America,” and four recent penthouse sales were to Brazilian buyers, Tillman said. Forty-five percent of sales have been to domestic buyers.

1 Hotel and Homes, at 102 24th Street, launched condo sales in 2013, before the LEED-certified condo and hotel project opened last year. As TRD reported, 1 Hotel South Beach is now being marketed for sale.

“When we started we were focused on Latin America, but as the hotel opened and New Yorkers started coming down, we had a big uptick in New York buyers,” Tillman said. “But we weren’t able to market directly to New Yorkers until now.”

To capture that market, other South Florida condo projects also have registered in New York, including Turnberry Ocean Club in Sunny Isles Beach, which has not yet broken ground; and Canvas Miami, which is under construction.

1 Hotel and Homes‘ advantage, Tillman said, is that it is move-in ready. “Summer is here and once we get into the summer, the New York people start to think about where they are going for the winter,” he said. “So we have the opportunity, which is unique right now, that they can literally close and be here for the holidays.”

In addition to the penthouses on floors 16 and 17, units available on floors nine to 15 include one-bedroom, two-bedroom and four three-bedroom units. Overall, sizes range from 970 square feet to more than 4,200 square feet for penthouses with prices per square foot from about $1750 to about $4,400, Tillman said. Prospective buyers have the option to purchase a furniture package, and some of the units are currently fully furnished.

Condo owners also have the option to place their units in the hotel’s rental program to rent on a nightly basis, or use an outside broker.

1 Hotel & Homes South Beach was completed last year on the site of the former Gansevoort Hotel. Amenities include four swimming pools; a spa and gym; Beachcraft restaurant, led by celebrity chef Tom Colicchio; an STK steakhouse and a SoulCycle.

Tillman said 1 Hotel and Homes has not yet begun its marketing program in New York, but expects to begin later this summer.