Fraction homes preceded jets, but jet shares got all the attention in the 90s as vacation-home fractions were defining themselves and picking up speed.

We now know that all types of property are being fractionalized: jewelry, cars, boats and the like.

So, it's not surprising that cruise ships are next. I spent an engaging afternoon with Randy Jackson, CEO of Residential Cruise Line and owner of the soon-to-be" keeled" Magellan a 860 foot, 15 deck vessel with 210 private residences sold both on a whole, fractional and club basis. Makes that other ship look like a shrimp!

The whole units go from $1.8 to over $7 million.

The fractions, for a month, range from $275,000 to $585,000 with annual fees from $9,500 to $20,000. Both sales and dues are certainly in the sweet spot for fractional products.

There's also a Club Membership for two weeks a year, floating unit, from $90k to $315k with dues from $4,000 to $10,000, which seems like pretty good deal. Matter of fact both the fractions and the clubs are both priced attractively.

www.residencecruiseline.com

Back to Randy…he's planned for some time to wed real estate, as he's a developer, to travel, cruising, aviation and high-styled amenity-action in one product. Sales so far, introductory level, are more fractions than whole units as one might expect, but, and here's the BUT, prospects are calling FOR the fractions! Sought good? Do those delicious words ring a bell?

A thought; is the fractional tipping point approaching? We've seen evidence over the past few months, not only with Magellan, but in many resort markets, that buyers are seeking out the product, and also those illusive real estate brokers may be coming around. Too good to be true? We'll see.

What part have the destination clubs played if the point is tipping? I don't know, but there is confusion out in the market place between the two products that may help both in the midterm period.

Lots of Hawaii calls recently….coming alive down there?

Just back from ULI's Council meeting in Chicago, and the four Recreational Development flights.

I was joined by other Star execs: Ron Frank and Ash Offermann and key alliance-guy Chirs Tivey he of Gravity.

Many old friends of 25 years including Bob Miller or Marriott, Ed McMullen, Sr. of hisself, Ed Spears among them.

Bob Miller recounted, yet again, his total praise of Howard Nusbaum as CEO or ARDA, and the job he has done to bring ARDA into the very mainstream of real estate lobbying groups. And, that the timeshare homeowner's PAC now raises some $3.5 million a year from $2 and $3 voluntary contributions from owners. Bob thought it up and Lynn Weas has been the honcho to bring it from pennies to multi millions.

The glamour side of the Rec Development function: Toni Alexander, as usual, lookin' LA great and Bryadyn Criswell 7 months PG, and looking very good, too. I can’t say as much for the ‘guys’ but I will state this: after Bob Miller and Ed McMullen, Sr showed up tieless for both Wednesday PM and all day Friday I sure has heck am not wearing mine next year

I was lamenting that we had not figured out how to sell fractions on an ‘event basis’ vs. tempo sales. Well, Randal Bone just opened up my thoughts with his Toscana experiences in selling, and how they 'evented' their way through the project by selling use vs. investment. Good stuff. Back to the drawing board, Carl.

As usual,, Mary Borgia, Red Flight Chair did a masterful job of programming and keeping the flight on track including that e mail sent at 3:45AM on the bus schedule!

Mary constructed a wonderful day of interactivity between members of the Red Flight that included round tables and panel discussions covering the whole spectrum of resort development and finance.

The Red Flight has such talented members. It's always a humbling experience to attend and learn. Sure, I've got the fractional side covered, but being a specialist of sorts can sometimes lead me to have tunnel vision. I certainly come away with my eyes wide.