Couple of days ago I posted Glimpse at Market Conditions at Oceanside Inn
I received a call form someone curious about condo-hotels. He read my blog post, and yet, I could see that he had difficult time navigating in this field. He was asking about the comparison.
It is not something that is cut in stone. It is never just one factor, but rather the multitude of factors affecting any condo-hotel. But in real estate there are some basic parameters, and they are location and price.
Location is very similar. They are all on the ocean. Of course, some are closer to Main Street, and all the buzz, but in nearly 2 decades dealing with condo-hotels, I saw about equal number of people, who wanted to be in the heart of all the activity, and those who wanted to be in a more quiet place.
And the other parameter is money, a universal one.
How is Oceanside doing? It is better to understand when comparing it to other condo-hotels. And it is even better when we limit ourselves to the same city, in our case – the City of Daytona Beach Shores.
Let us look at each of those 4 condo-hotels.
Castaways Beach Resort. 156 units
1 ocean view studio unit (380 sf) for sale for $60K.
In preceding 12 months 1 unit (331 sf) was sold for $55,500.
Hawaiian Inn. 208 units
Lowest priced unit with no view is offered for $45,900. Lowest priced ocean view studio (352 sf) is offered for $69,900.
18 units sold in preceding 12 months. Lowest priced studio was closed for $30K. 3 units without a balcony ranging in size from 278 sf to 337 sf were sold in the $30s. Nothing in the $40s and $50s. Next sold price was $64,500 and up, up, up…
Pirate’s Cove. 164 units
The building is along the ocean and overwhelming majority of units are oceanfront. Lowest priced studio unit (385 sf) is $75,900. Very stable condo-hotel, has money in their coffers, no assessments even after Matthew.
19 units sold in preceding 12 months. Lowest priced closed studio unit (385 sf) went for $57,900 and it was the only one in the $50s. All other sales were in the $60s (5), $70s (11), $80s (1) and 1 for $175K.
Subject property (Oceanside Inn. 123 units)
16 units for sale. Starting price for ocean view large (433 sf) studio is $39,900.
In the preceding 12 months 8 units sold. Lowest priced unit was a studio closed for $32K. Lowest priced double unit was sold for $40K ($20K per room). The most expensive double unit fetched $48,500. A triple unit was sold for $52,500.
As we all know, statistics is a tool, and it is numbers only, while life has more dimensions. Let’s say, we got to the point that we are now comparing condo-hotels to Plaza Resort & Spa (it is in Daytona Beach, not Daytona Beach Shores) simply because the numbers are close.
In 2006-2007 we would never put any of the condo-hotel next to Plaza. It would be clearly comparing apples to oranges. No other condo-hotel could even dream of the prices they were selling their units for. But now, due to mismanagement among other factors, they are on the same level with Oceanside – 2 distressed condo-hotels in Daytona area.
And while Plaza was the best of expensive ones, Oceanside was leading the modestly priced condo-hotels. It was the best of a bunch of other condo-hotels, 7 or 8 of them.
It has inside corridor system (which is a big plus), nicer lobby, nicer common area, nicer rooms. We used to have an office in Fountain beach Resort, and we used to tell people that Oceanside Inn was at least 2 grades better. Well, today Fountain is better, no comparison. And not only Fountain Beach Resort. From the leading position Oceanside Inn slid to the last place.
I just thought that it is very strange, that the best expensive condo-hotel – The Plaza Resort & Spa, and the best budget condo-hotel – Oceanside Inn – both suffered tremendously and are not both among the worst. But I am far from thinking that there is a curse. Both seem to have serious problems with management.
And management means people.
So, how is Oceanside doing? The best answer today is so-so.