Reinventing the condo-hotel

New York /
Dec.December 21, 2009 10:00 AM

Condo-hotels, like the Plaza Hotel at 768 Fifth Avenue, and the new Trump Soho at 246 Spring Street, may soon become a thing of the past. The buildings allow condo buyers to access hotel services and restrict their occupancy so that units can be rented out while they are away. But they are now proving difficult to sell — not because of a lack of interest but because of a lack of financing. “There is no financing for condo-hotels, so people have to buy in cash,” said Rodrigo Niño, president of the Prodigy Network, which is marketing Trump Soho. “What we think is, out of the original sales, we’re going to lose 10 to 15 percent of the people who won’t be able to close because of lack of financing.” After their planned 205-unit Nobu Hotel and Residences fell through, Raphael and father Robert De Niro are now planning a new condo-hotel in Miami’s South Beach, but the model is slightly different: Buyers’ occupancy will not be restricted and the units will not be rented out part-time. Condo-hotels using the Trump Soho’s model “are proving to not be successful,” said Raphael De Niro, managing director at Prudential Douglas Elliman. At the Fannie Mae-approved 75 Wall Street, hotel services are being sold to buyers à la carte. “Fannie Mae will not approve a condo-hotel under their guidelines,” said Larry Kruysman of Corcoran Sunshine Marketing Group, who is directing sales at 75 Wall Street. [NYT]


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Elvis Presley and his childhood home in Tupelo, MI
Don’t be cruel: Elvis childhood home back on auction block
Don’t be cruel: Elvis childhood home back on auction block
116 East 65th Street and Ghislaine Maxwell (Zillow, iStock)
Investor Frederick Rudd sells Ghislaine Maxwell’s former UES townhouse
Investor Frederick Rudd sells Ghislaine Maxwell’s former UES townhouse
Berkshire Hathaway HomeServices' Steven James (right) and Brad Loe (BHHS, iStock)
Berkshire Hathaway HomeServices wants to be a New York contender
Berkshire Hathaway HomeServices wants to be a New York contender
Amy Schumer and 19 Cranberry Street in Brooklyn Heights (Zillow, Getty Images)
No joke: Amy Schumer strikes deal for “Moonstruck” home
No joke: Amy Schumer strikes deal for “Moonstruck” home
From left: Jon Bon Jovi, CAA co-founder Michael Ovitz and 155 West 11th Street (Getty Images, Compass Real Estate, iStock)
Ovitz revealed as Bon Jovi’s Greenwich Village condo buyer
Ovitz revealed as Bon Jovi’s Greenwich Village condo buyer
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...