Sea Dip is a 5-story 134-room Daytona Beach condo-hotel. It is one of the oldest condo-hotels in the area – it was built in 1960. In early 2000 it has undergone concrete restoration. The first condo-hotel to go through that. At that time $7K-$8K Special Assessment sounded like a lot of money.
So, for 40 years it withstood time, Florida humidity and heat… We thought that it would carry it without any serious work for yet another 40 years, but this is not the case here. If you drive by Sea Dip today, you will see considerable work being performed on the building. Not as massive, as back in the early 2000, but still costing owners money. Special assessment is set in 3 phases. Phase I was $800, Phase II – 1,111, and Phase 3 coming right now is $554.
Is Florida getting more humid and hotter than before? Or it is simply that the work done before wasn’t a stellar one?
Rooms are one of the smallest among the condo-hotels starting from 221 SF, but some of the units are larger. This is one of 3 condo-hotels, offering not only an outdoor pool, but an indoor pool as well. And, of course, this condo-hotel offers owner a lavish split of 70% of rental income going to them.
However, this is a self-managed condo-hotel, rentals are not the greatest, so 70% may not mean a lot. Profitability depends on the income more than on a split…
Condos on the market
So, what’s cooking there?
8 units are for sale in the resort as of February 1, 2018. Starting price $34,500. 2 units in the $30s, 2 units in the $50s, 3 in the $60s and one unit is advertised at $79,900.
One unit is Pending, and one is Contingent.
There were 6 sales in the last 12 months from $31,750 to $55,000. Note that 5 out of six were priced in the $30s… Is it a reflection of the work on the property?
In 2016 there were 8 units sold in Sea Dip starting from $26,500. 2 units fetched the price in the $30s, one in the $40s, and 4 units were in the $50s, so yes, the restoration work affected the prices of unit, but there is nothing unusual. Every serious work on any condo-hotel causes a decline in values, which usually disappears after the work is completed.
From this point of view, buying in a property, where prices are depressed, maybe a good tactical move.