I Sleep Like A Baby

So, Why Do I Sleep Like A Baby?

Ha-ha, no, not because our “genius” president Grady Meeks has finally sold his last unit, and we bid him good riddance. Even though what Hurricane Ian did to Hawaiian Beach Resort on the outside, Grady Meeks did on the inside. In one case, it was force of nature, in the other – force of aggravated incompetence…

But today we are talking about the Hawaiian Inn in Daytona Beach Shores, a 208-unit condo-hotel developed by John Rainey, the same developer who did Oceanside Inn next.

Hurricane Ian

Hurricane Ian, which slammed the West Coast of Florida with 150 mph winds and traveled across the state to the Atlantic Ocean south of Daytona Beach as a Tropical storm still caused a lot of damage both from the wind and the flooding that followed.

Hawaiian Inn suffered very serious damage. Its sea wall is in ruins, and water gushed at the property and washed sand away, getting too close to the structure itself.

If you drive past the property, you will see an empty parking lot. The resort is closed. No guests there. Yet, on their website there is no mentioning of the storm, and everything is fine. The phones give you a busy signal, and the only indication that not everything is great is that when you try their reservations page, you can’t book anything.

From Atlantic Ave. the resort does not look as there is any damage, but the ocean side is where all the destruction took place.

Prior Year Sales

In the 12 preceding months 22 units changed hands in Hawaiian Inn. From May this year prices went over $200K – 6 units changed hands for $200K and more. The highest amount was $289K for a SE corner 1-bedroom unit. Great view – great loss, if the building is condemned, and this is what we are hearing now.

This $289K condo has new owners since August 26, 2022. They purchased it just 43 days ago. I can only imagine how angry are the new owners.

Hawaiian After The Special Assessment of 2008

I do not want to brag, but in the last 2 years I did not take a buyer to Hawaiian Inn. I was getting quite a few requests because Hawaiian is easy to owners. You pretty much can do whatever you want, do your own AirBnb, or long-term rentals. But I was telling the callers, that I am not going to help them buy a unit there as I new there were construction problems, and the massive Special assessment of 2008 did not resolve all the issues. It was a $20,000 or about Special Assessment per room plus the owners paid for their glass sliding doors to the balcony.

I knew I was losing money, as many did not listen to me and bought units there, but I did not regret it then, and I don’t regret it now.

You should not be a genius to understand it, just walk the hallways of the building, and look around. If the walls inside did not collapse and only the sea wall collapsed, it does not mean that the building is sound. It is a matter that another hurricane would handle .

But, boy, do I sleep like a baby?

What the Owners Can Get

A caller asked what the owners can get if the authorities condemn and raze Hawaiian to the ground. I do not have a Crystal Ball, I do not have their insurance policy, so I am guessing here. If there are no problems with their insurance and no negligence (which may be there easily) and it is insured for $10 Mil, the insurance money divided can get the owner just under $50K per unit, plus the proceeds from the sale of the land.

This is a wonderful piece of land and in perfect location. Should be relatively easy to find a buyer. City new height limitations are 26-story building if the lot is wider than 350 linear feet on the ocean. Hawaiian is on a lot with 400 linear ft on the ocean. The proceeds from land sale can get owners another $35K-$45K per unit. With latest sale prices over $200K, this resolution would hardly make owners very happy.

Of course, 2 years ago I did not know that a Tropical storm would do to Hawaiian Inn. But I am glad I did not allow the greed in me to take over my judgement.

I sleep like a baby.

About Jon Zolsky

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