Traditionally, most businesses have been slow in December. Well, not so resort development—at least not at Star.
Seahorse Beach Club & Residences - Like us on Facebook. Yes, we finally got our page up. We are beginning construction of our first Beach House this week; grading and the new composite fiberglass pilings next week and on January 23rd we are having our Ground Breaking event with the slabs in bottom and top, so our guests can climb up and see the view from the main, living floor. Save that date! Our discussions with the City of Freeport continue to be fruitful for the eventual city services that will help to remake our part of the Gulf Coast.
Our Club Membership Program for non-residents will begin in January, too. We have allocated up to 100 memberships, corporate and private, in our area of the Gulf.
Crystal Bay Resort on Marathon Key, Florida Keys - The lead investors and owners have decided to switch from a hotel with cottages for fractional sale to an all-condo, whole and fractional, resort with some 80 units. This is very exciting news for Star as the marketing agent, and we’ve received terrific assistance from Tim McLaughlin of RCI/Registry to help position the resort in the best possible way.
Florida Keys Resort, Marathon Key, Florida Keys - The phase two remediation work is underway at the old maintenance base; closing is set for early next spring. Design is underway, along with City approvals for the new boutique hotel and the detached cottages, plus the new marina and golf course revisions. Marvin Rappaport, Peter Rosasco and Adam Greenberg, as managing members, are all moving us ahead to meet our goal of construction starts on May 1, 2014, and soft sales opening for the detached cottages in September with a hard opening on December 15th. This is a truly exciting venture.
Square 97 French Quarter, New Orleans - The investors are now narrowed down to the few that can make this singular project really happen. The promote team of Don Dauzat, Richard Gerage and me are all hard at work to get a February closing. As you may recall, there is a boutique hotel, retail, food and beverage, parking and more than 100 condos, whole, fraction and timeshare. This is a big deal.
A very Happy Christmas [as the Brits say] and grand Holidays to all!
Monday, December 09, 2013
Thursday, November 14, 2013
Catching up with Carl: November 2013
What have I learned this month:
1. After a brief trip to Ft. Lauderdale on our two Marathon Keys projects, I am more than ever impressed with the team there led by Marvin Rappaport. Just top flight.
We’ll start selling the Florida Keys Club on December 1, 2014, with the first of the 16 fractional cottages while the golf course is under renovation, the marina put in place and the new hotel and clubhouse completed.
On the Crystal Marathon project, just a mile away, we discussed converting the whole project to condos, sold whole and fractional versus the hotel and fractions. Either way, this is a terrific site and to be able to sell two projects in close proximity will be a huge advantage for us.
2. I’m heading to Seahorse Beach Club in Texas next week for a long overdue trip, and to close our construction loan. We have our new Pearson Piling system ready to go. To recall, we need to build up 17 feet and go down 23 feet to hit bedrock. The composite fiberglass pilings will set the standard for Gulf-front building.
We are about to bring to market our membership sales program at Seahorse, which will not only allow financing of the 9,000 square foot club, also up 17 feet, but the other amenities like the pool, crabbing pier, game areas, etc.
Even though we are about three or four months behind schedule, we are now really ready to take off. We have a new round of private equity that allows us to move out very smartly.
3. New Orleans continues to be a mystery to me. It is such a prime parcel and area [the French Quarter] that I don’t know why a major developer has not yet bitten. To change the dynamic, we are hiring our own master developer, completing a new, more comprehensive offering package, and focusing on investors only.
4. I, along with many others, received an offering to take out the investors for the Mountain Club at Cashiers in North Carolina via Ragatz Resort Realty. This was an early fractional project that is still in sales. The developer has been very resilient over the past decade, and the fractional product has a good reputation. Star would jump at the opportunity to raise the money, but Greg Traxler, an outstanding project director and sales manager, already has the contract through Resort Equities. So, no play for Star. But, the interesting news is that the Mountain Club is gearing back up for the fractional market.
5. Happy Thanksgiving.
1. After a brief trip to Ft. Lauderdale on our two Marathon Keys projects, I am more than ever impressed with the team there led by Marvin Rappaport. Just top flight.
We’ll start selling the Florida Keys Club on December 1, 2014, with the first of the 16 fractional cottages while the golf course is under renovation, the marina put in place and the new hotel and clubhouse completed.
On the Crystal Marathon project, just a mile away, we discussed converting the whole project to condos, sold whole and fractional versus the hotel and fractions. Either way, this is a terrific site and to be able to sell two projects in close proximity will be a huge advantage for us.
2. I’m heading to Seahorse Beach Club in Texas next week for a long overdue trip, and to close our construction loan. We have our new Pearson Piling system ready to go. To recall, we need to build up 17 feet and go down 23 feet to hit bedrock. The composite fiberglass pilings will set the standard for Gulf-front building.
We are about to bring to market our membership sales program at Seahorse, which will not only allow financing of the 9,000 square foot club, also up 17 feet, but the other amenities like the pool, crabbing pier, game areas, etc.
Even though we are about three or four months behind schedule, we are now really ready to take off. We have a new round of private equity that allows us to move out very smartly.
3. New Orleans continues to be a mystery to me. It is such a prime parcel and area [the French Quarter] that I don’t know why a major developer has not yet bitten. To change the dynamic, we are hiring our own master developer, completing a new, more comprehensive offering package, and focusing on investors only.
4. I, along with many others, received an offering to take out the investors for the Mountain Club at Cashiers in North Carolina via Ragatz Resort Realty. This was an early fractional project that is still in sales. The developer has been very resilient over the past decade, and the fractional product has a good reputation. Star would jump at the opportunity to raise the money, but Greg Traxler, an outstanding project director and sales manager, already has the contract through Resort Equities. So, no play for Star. But, the interesting news is that the Mountain Club is gearing back up for the fractional market.
5. Happy Thanksgiving.
Thursday, October 17, 2013
Catching Up with Carl: October 2013
One thing about the development business is that it's ever changing. An example? Our Seahorse Beach Club. We know that development today is amenity forward, but we felt that by being on the Gulf Coast we could hedge and put in our main amenities after we had some sales success.
Wrong. Our buyer feedback is that they want to see and touch. We knew that, right? Well, we kinda forgot, but now have re-learned.
So, we are, to use an analogy, going to walk and chew gum at the same time: We will sell club memberships to locals while we sell fractions, lots and homes. The club memberships are aimed at those who have a home and boat, but are not on the beach. We'll take reservations and use those reservations to advance our funding for the $5 million Beach Club and community pool, both up 19 feet to meet FEMA requirements!
So, don't be a developer if you don't want to be nimble.
Wrong. Our buyer feedback is that they want to see and touch. We knew that, right? Well, we kinda forgot, but now have re-learned.
So, we are, to use an analogy, going to walk and chew gum at the same time: We will sell club memberships to locals while we sell fractions, lots and homes. The club memberships are aimed at those who have a home and boat, but are not on the beach. We'll take reservations and use those reservations to advance our funding for the $5 million Beach Club and community pool, both up 19 feet to meet FEMA requirements!
So, don't be a developer if you don't want to be nimble.
More orderly is the Florida Keys Club on Marathon Key, where the deal is cut with the former equity golf course owners to buy the property, and the re-design of the golf course is underway as is the architecture of the fractional cottages and the new boutique hotel with lock out rooms to be sold at the appropriate time. I'm sure we'll get into some twists and turns once sales begin. Our two managing directors, Marvin Rappaport and Peter Rosasco, are both talented and terrific businessmen.
Knocking at the door, though the door is not open yet, is Greek Peak in New York State. The project went into BK a few years ago due to its lender failing and a winter with very little snow. Local businessmen bought it from the FDIC earlier this year, and have asked for a proposal much like we had in line before the financial problems arose. They began construction on their Hope Lake Lodge in August of 2008. Talk about timing!
I write this flying back from New Orleans, where that deal continues to move ahead. Next week, I’m off again, heading to London for the annual Trafalgar dinner celebrating that battle of 1805, where in the British gained the sea superiority that allowed them to 'rule the world' during the 1800s. Also, visiting the newly opened wing of the Greenwich Naval Museum: Nelson, Navy, Nation. I toured the facility last spring when it was under construction and now I'll see the finished product. Lastly, a stop at the HQ of the Order of St. John, at St. John Gate in London, to tour the museum and thank the Queen for my membership approval.
Knocking at the door, though the door is not open yet, is Greek Peak in New York State. The project went into BK a few years ago due to its lender failing and a winter with very little snow. Local businessmen bought it from the FDIC earlier this year, and have asked for a proposal much like we had in line before the financial problems arose. They began construction on their Hope Lake Lodge in August of 2008. Talk about timing!
I write this flying back from New Orleans, where that deal continues to move ahead. Next week, I’m off again, heading to London for the annual Trafalgar dinner celebrating that battle of 1805, where in the British gained the sea superiority that allowed them to 'rule the world' during the 1800s. Also, visiting the newly opened wing of the Greenwich Naval Museum: Nelson, Navy, Nation. I toured the facility last spring when it was under construction and now I'll see the finished product. Lastly, a stop at the HQ of the Order of St. John, at St. John Gate in London, to tour the museum and thank the Queen for my membership approval.
Tuesday, September 17, 2013
Catching Up with Carl: September 2013
So far, September is shaping up as a very good month for Star.
On the Gulf Coast, Seahorse Beach Club, www.beachclubatseahorse.com, is knocking down its first sales. Richard Korowicki, sales director, is leading the charge. The Beach and Bay homes are finally approved by the county. Whatever happened to the easy counties to do business in? Our PR program, led by Bernard Kaplan of Houston's Kaplan Public Relations, is in full force with front, business section stories in last Sunday’s Houston Chronicle.
The Florida Keys Club, in Marathon Key in the Florida Keys, is moving at flank speed. We are in due diligence now, and expect to exit in a month and close after the first of the year. Both Marvin Rappaport and Peter Rosasco are working through the myriad tasks and consultants to gain all approvals for the fractional cottages, the hotel, the new clubhouse and the renovation of the golf course and tennis complex. Bill Meyer, of Meyer Jabara Hotels, and Newmark Capital round out the development and operational team along with Star.
The Crystal project, also on Marathon—with the Residence Inn by Marriott as the anchor plus the fractional cottages on the Gulf—may soon be joined by eight additional cottages on the neighboring property, making a total of 21 Key West–style cottages to sell. The EB5 program is taking a bit longer than anticipated, but still moving along.
After investors made runs at it from all over the country, the French Quarter project in New Orleans is now back in local hands, where it should have been the entire time.
The NOLA promote team is led by Don Dauzat and family, and joined by attorney Richard Gerage and Star. Premier architect and interior designer Billy Sizeler, of Sizeler Thompson Brown Architects, is leading the team to ensure this square block in the French Quarter is singular in its design and economic contribution to this iconic venue. The project, while massive, can be a capstone to Star’s work in the resort arena.
As I have for the past 19 years, my summer has been spent in Northwestern Montana up by Glacier National Park. What a change from urban settings: the warm days and cool nights, the grandeur of the Continental Divide and, speaking of iconic, Glacier National Park! I return in great shape from hiking only to erode slowly as business travel takes over. To fly in and out of Kalispell, Montana, as I do for business during the summers, is one expensive experience, primarily on those wonderful regional jets. So, a price is paid for the gorgeous outdoors here.
On the Gulf Coast, Seahorse Beach Club, www.beachclubatseahorse.com, is knocking down its first sales. Richard Korowicki, sales director, is leading the charge. The Beach and Bay homes are finally approved by the county. Whatever happened to the easy counties to do business in? Our PR program, led by Bernard Kaplan of Houston's Kaplan Public Relations, is in full force with front, business section stories in last Sunday’s Houston Chronicle.
The Florida Keys Club, in Marathon Key in the Florida Keys, is moving at flank speed. We are in due diligence now, and expect to exit in a month and close after the first of the year. Both Marvin Rappaport and Peter Rosasco are working through the myriad tasks and consultants to gain all approvals for the fractional cottages, the hotel, the new clubhouse and the renovation of the golf course and tennis complex. Bill Meyer, of Meyer Jabara Hotels, and Newmark Capital round out the development and operational team along with Star.
The Crystal project, also on Marathon—with the Residence Inn by Marriott as the anchor plus the fractional cottages on the Gulf—may soon be joined by eight additional cottages on the neighboring property, making a total of 21 Key West–style cottages to sell. The EB5 program is taking a bit longer than anticipated, but still moving along.
After investors made runs at it from all over the country, the French Quarter project in New Orleans is now back in local hands, where it should have been the entire time.
The NOLA promote team is led by Don Dauzat and family, and joined by attorney Richard Gerage and Star. Premier architect and interior designer Billy Sizeler, of Sizeler Thompson Brown Architects, is leading the team to ensure this square block in the French Quarter is singular in its design and economic contribution to this iconic venue. The project, while massive, can be a capstone to Star’s work in the resort arena.
As I have for the past 19 years, my summer has been spent in Northwestern Montana up by Glacier National Park. What a change from urban settings: the warm days and cool nights, the grandeur of the Continental Divide and, speaking of iconic, Glacier National Park! I return in great shape from hiking only to erode slowly as business travel takes over. To fly in and out of Kalispell, Montana, as I do for business during the summers, is one expensive experience, primarily on those wonderful regional jets. So, a price is paid for the gorgeous outdoors here.
Thursday, September 05, 2013
Catching Up with Carl: August 2013
Into the heart of summer we go! I am returning from our Texas Gulf Coast project, Seahorse Beach Club. Our sales team continues to do well, as does project management. However, our building permit for the oceanfront homes has been delayed by the State of Texas, which now wants previously unspecified survey results of mean low and high tides. So, we expect to finally get the data to them and begin construction in two weeks. To think we had counted on beginning construction last June!
So, the Texas that was easy to do business in is not so now! The trials of being in the development business are many, but heck, they are worth it. At least better than sitting on the sidelines and doing nothing!
We have engaged Kaplan Public Relations to launch our Houston-area PR blitz. We are firm believers that the best leads come from PR versus the old, print model. We'll soon see if this holds up.
That mid-state New York deal, Greek Peak, has been purchased by local investors, and we are not sure if they want to continue the fractional sales or not, or if they'll consider using Star. Time will tell.
To the contrary, the Florida Keys projects continue to move smartly along, especially the Florida Keys Club on Marathon. Key developer Marvin Rappaport has assembled a first class team—Star included—to redevelop the property, including building new fractional cottages and hotel units. The team includes hospitality management and architecture.
Our New Orleans project—the square block in the French Quarter, plus nearby parking and two other choice sites in the Quarter—is on the fast track with our developers, architects and investors. Previous thinking that this deal was 'too big to go' has now changed to 'it will go'. Here's hoping.
I read an interesting Wall Street Journal article (available here) about a golf course owner in Michigan who has an 18-hole course, as well as 5, 7, and 12-hole options. We know that most all younger folk don't have the time for 18 holes anymore. So, this is an interesting, cutting-edge approach. Thanks to Chris Kelsey for bringing this shorter option to my attention.
For more Star news and updates, be sure to "like" Star Resort Group on Facebook.
So, the Texas that was easy to do business in is not so now! The trials of being in the development business are many, but heck, they are worth it. At least better than sitting on the sidelines and doing nothing!
We have engaged Kaplan Public Relations to launch our Houston-area PR blitz. We are firm believers that the best leads come from PR versus the old, print model. We'll soon see if this holds up.
That mid-state New York deal, Greek Peak, has been purchased by local investors, and we are not sure if they want to continue the fractional sales or not, or if they'll consider using Star. Time will tell.
To the contrary, the Florida Keys projects continue to move smartly along, especially the Florida Keys Club on Marathon. Key developer Marvin Rappaport has assembled a first class team—Star included—to redevelop the property, including building new fractional cottages and hotel units. The team includes hospitality management and architecture.
Our New Orleans project—the square block in the French Quarter, plus nearby parking and two other choice sites in the Quarter—is on the fast track with our developers, architects and investors. Previous thinking that this deal was 'too big to go' has now changed to 'it will go'. Here's hoping.
I read an interesting Wall Street Journal article (available here) about a golf course owner in Michigan who has an 18-hole course, as well as 5, 7, and 12-hole options. We know that most all younger folk don't have the time for 18 holes anymore. So, this is an interesting, cutting-edge approach. Thanks to Chris Kelsey for bringing this shorter option to my attention.
For more Star news and updates, be sure to "like" Star Resort Group on Facebook.
Catching Up with Carl: July 2013
The two LinkedIn groups I manage—Luxury Resort Development and Luxury Resort Fractions—now have a total of 4,742 members. That's up about a thousand from last year. So, congratulations to those who 'hung in’ there during the last of the recession and welcome to those who have more recently joined.
I have begun to receive Google alerts for 'Fractional Resorts' after a hiatus of what has seemed to be a few years. So, is there a market perking up? On the buyer financing side, as far as I can tell, the answer is ‘no.’ On the development financing side, a qualified ‘yes.’
It’s interesting that the banks we've spoken with say they are not 'collateral' lenders. While I realize what that means, how do they lend to make any money? Does that mean they don't lend anymore to auto dealers, hardware stores and the like against their inventory? They can ask for the personal or corporate guarantee, but for the post-recession resort business, they are not going to get much in those areas.
A recent Wall Street Journal story about luxury Tuscan resorts featured the Timbers Resorts property Castello di Casole, which has succeeded during the recession by selling fractions and whole homes to European buyers. That was the message a few years back from Timbers’ then-sales manager at Piers Brown's fractional London conference, so good for them to be able to attract those buyers.
In Star Resort Group news, we are about to come to market at our Texas project, Seahorse Beach Club, with both whole and fractional homes for sale. We’ll see if the fractional product is still recognized and sought after by the booming Houston market.
We have a great team there with Ward Communications out of Houston leading the marketing way. We also have such talent as architect Margit Whitlock of Architectural Concepts; our terrific home designer, Alan Kent of Kent & Kent out of Houston; Bob Duke of Galveston’s Duke Landscaping Architecture; Gary Bullard, our quite down-to-earth building contractor; as well as our in-house team of Richard Korowicki leading sales, Chris Cannon for marketing and Scott Tracy for project management.
All else at Star is fine.
I have begun to receive Google alerts for 'Fractional Resorts' after a hiatus of what has seemed to be a few years. So, is there a market perking up? On the buyer financing side, as far as I can tell, the answer is ‘no.’ On the development financing side, a qualified ‘yes.’
It’s interesting that the banks we've spoken with say they are not 'collateral' lenders. While I realize what that means, how do they lend to make any money? Does that mean they don't lend anymore to auto dealers, hardware stores and the like against their inventory? They can ask for the personal or corporate guarantee, but for the post-recession resort business, they are not going to get much in those areas.
A recent Wall Street Journal story about luxury Tuscan resorts featured the Timbers Resorts property Castello di Casole, which has succeeded during the recession by selling fractions and whole homes to European buyers. That was the message a few years back from Timbers’ then-sales manager at Piers Brown's fractional London conference, so good for them to be able to attract those buyers.
In Star Resort Group news, we are about to come to market at our Texas project, Seahorse Beach Club, with both whole and fractional homes for sale. We’ll see if the fractional product is still recognized and sought after by the booming Houston market.
We have a great team there with Ward Communications out of Houston leading the marketing way. We also have such talent as architect Margit Whitlock of Architectural Concepts; our terrific home designer, Alan Kent of Kent & Kent out of Houston; Bob Duke of Galveston’s Duke Landscaping Architecture; Gary Bullard, our quite down-to-earth building contractor; as well as our in-house team of Richard Korowicki leading sales, Chris Cannon for marketing and Scott Tracy for project management.
All else at Star is fine.
Catching Up with Carl: June 2013
We’ve fallen behind our schedule at Seahorse Beach Club on the Texas Gulf Coast. Too many nits and nats to cover, so construction will begin in July versus June for home delivery in November versus October. Darn it.
The good news is the FF&E package is just terrific. Margit Whitlock’s company and Dahlgren Duck have both outdone themselves. The homes will be a knockout! Pictured is our Beach Club and pool:
It pays to have a mature and experienced team tying down the proverbial tent pegs in a strong wind. Richard and Amy Korowicki in sales are doing yeoman's work at the site with the temporary sales center just delivered. Chris Cannon has designed a knockout interiors plan for the modular structure. This is to be used until the Beach Club opens next summer.
Our project director, Scott Tracy, continues to manage the hundreds of details on site. Talk about getting gobsmacked for corporate housing. Our area is in a boom phase with the petro chemical and natural gas plants all expanding. Dow Chemical alone is spending more than $2.5 billion. With all the workers and new employees flooding in, it was very tough and very, very expensive to find housing for our team.
New Orleans, that Square #97 in the French Quarter, is moving ahead. It’s a very complicated deal, but Don Dauzat, the local developer in charge, continues to keep about 22 balls in the air at any one moment.
And, Marathon Key in the Florida Keys continues to look good for the Gulf-side cottages, and maybe another golf club deal. Only Marvin Rappaport knows for sure.
The Greek Peak deal in upstate New York State has gone away, sold by FDIC to local investors who plan to market the Hope Lake Lodge themselves. Alas, a really good deal, but caught up in the recession. All else at Star is fine.
The good news is the FF&E package is just terrific. Margit Whitlock’s company and Dahlgren Duck have both outdone themselves. The homes will be a knockout! Pictured is our Beach Club and pool:
It pays to have a mature and experienced team tying down the proverbial tent pegs in a strong wind. Richard and Amy Korowicki in sales are doing yeoman's work at the site with the temporary sales center just delivered. Chris Cannon has designed a knockout interiors plan for the modular structure. This is to be used until the Beach Club opens next summer.
Our project director, Scott Tracy, continues to manage the hundreds of details on site. Talk about getting gobsmacked for corporate housing. Our area is in a boom phase with the petro chemical and natural gas plants all expanding. Dow Chemical alone is spending more than $2.5 billion. With all the workers and new employees flooding in, it was very tough and very, very expensive to find housing for our team.
New Orleans, that Square #97 in the French Quarter, is moving ahead. It’s a very complicated deal, but Don Dauzat, the local developer in charge, continues to keep about 22 balls in the air at any one moment.
And, Marathon Key in the Florida Keys continues to look good for the Gulf-side cottages, and maybe another golf club deal. Only Marvin Rappaport knows for sure.
The Greek Peak deal in upstate New York State has gone away, sold by FDIC to local investors who plan to market the Hope Lake Lodge themselves. Alas, a really good deal, but caught up in the recession. All else at Star is fine.
Catching Up with Carl: April/May 2013
At our Seahorse project—located on the Gulf Coast of Texas and an hour from downtown Houston—we are charging ahead with plans to get in sales by June 1st. We're excited to welcome Richard Korowicki as sales director. Richard previously worked with both the Teton Club and Pronghorn and achieved top sales at each project.
We are kind of stymied on the electronic component for our homes and for the Beach Club. Our area of the Gulf Coast is not on the major grids, so what we use for Internet, bandwidth for movies on demand and how we remotely regulate the heat and air are all very expensive. Any suggestions?
These days, the challenge is to fit out a beach house that will be used by three generations, with the kids wanting all the access and toys and the grand-folks perhaps not caring quite as much. How many big, flat-screen TVs does it take to trick out a five bedroom home including one bunkroom?
Until the Beach Club is finished next spring, our temporary sales center will be a modular unit, 22 x 45 feet with viewing deck, handicap access and maybe not quite enough parking. Recall that all our buildings, including the pool and its surrounding 3,500 square foot deck, will be 17 feet off the beach! Now, that’s a picture worth seeing.
As any developer knows, the process of getting started has hundreds of details. We continue to be impressed with architect Margit Whitlock, who has great advice and work-arounds. Our team of my partner, John Howton, our project director, Scott Tracy, and our marketing guru, Chris Cannon, are all high performers as is our sales guru, Richard Korowicki. In a real twofer, his wife, Amy, will back him up for sales!
In other news, Marvin Rappaport of the Florida Keys reports good success with his EB5 program. His trip to China was very successful, as have been the subsequent visits by contacts he met there. This virtually ensures the Marriott Residence Inn plus 11 to 18 cottages on the Gulf will be a ‘go.’
Don Dauzat of the French Quarter in NOLA reports that he has a buyer almost in place for the square block thanks, in part, to the willing seller.
Why is all the action in the southeast?
We are kind of stymied on the electronic component for our homes and for the Beach Club. Our area of the Gulf Coast is not on the major grids, so what we use for Internet, bandwidth for movies on demand and how we remotely regulate the heat and air are all very expensive. Any suggestions?
These days, the challenge is to fit out a beach house that will be used by three generations, with the kids wanting all the access and toys and the grand-folks perhaps not caring quite as much. How many big, flat-screen TVs does it take to trick out a five bedroom home including one bunkroom?
Until the Beach Club is finished next spring, our temporary sales center will be a modular unit, 22 x 45 feet with viewing deck, handicap access and maybe not quite enough parking. Recall that all our buildings, including the pool and its surrounding 3,500 square foot deck, will be 17 feet off the beach! Now, that’s a picture worth seeing.
As any developer knows, the process of getting started has hundreds of details. We continue to be impressed with architect Margit Whitlock, who has great advice and work-arounds. Our team of my partner, John Howton, our project director, Scott Tracy, and our marketing guru, Chris Cannon, are all high performers as is our sales guru, Richard Korowicki. In a real twofer, his wife, Amy, will back him up for sales!
In other news, Marvin Rappaport of the Florida Keys reports good success with his EB5 program. His trip to China was very successful, as have been the subsequent visits by contacts he met there. This virtually ensures the Marriott Residence Inn plus 11 to 18 cottages on the Gulf will be a ‘go.’
Don Dauzat of the French Quarter in NOLA reports that he has a buyer almost in place for the square block thanks, in part, to the willing seller.
Why is all the action in the southeast?
Catching Up with Carl: March 2013
Three areas to cover this month:
1. London Fractional/hotel conference: Piers Brown deserves credit for pushing on through the recession. The conference shrank from two to one day. The one-day was, however, excellent and saw about 100 attendees, all of whom were interactive and some real, top tier talent. Here are my takeaways:
•The European market is in limbo with the recent Italian elections, and the continued weak economies in Italy, Spain and Crete. There is no bank money for resort development as the money is all committed to the bail-out initiatives the EU is working through.
•The timeshare market in Europe continues to fight uphill against past transgressions in marketing and sales. Add to that, the UK regulations that a timeshare/fraction has to be on leasehold versus fee.
•That said, very established sun areas, specifically theAlgarve in Portugal, continue to sell and plan new developments.
2. Seahorse Beach Club, Texas Gulf coast outside of Houston: We have now set our Beach Club and Pool and fractional home designs. FF&E continues to be a bit high, and we’re working on that. Our website will be up in the next two weeks, and premarketing will begin in April. Two observations:
•Houston residential real estate continues to boom. Yes, boom. The energy and medical sectors that dominate Houston are going up, up and up. Houston is our primary market just an hour away.
•First homes will be ready for occupancy in mid-August. The Ocean homes will be 5-bedroom/5 bath and the Bay homes will be 4 and 4. The Beach Club willopen spring 2014 featuring day use for owners who don’t want to stay the night. Pricing will reflect the start up nature of the project.
3. Future Deals: The Wall Street Journal had an article on the EB5 program focused on the Trapp Family Lodge in Vermont. On the Florida Keys project, previously reported on, the developer is currently in Shanghai rounding up the necessary funds to get that project underway.
•New Orleans—the hotel component is drawing terrific attention recently. So, we expect that part of the French Quarter square block to be put to bed shortly.
•Nakoma Golf Resort in the Sierra Nevada north of Lake Tahoe. We first visited in the early 2000s and went back this week. The resort welcomed new owners, savvy folks who will reintroduce the fractional product in the coming months.
1. London Fractional/hotel conference: Piers Brown deserves credit for pushing on through the recession. The conference shrank from two to one day. The one-day was, however, excellent and saw about 100 attendees, all of whom were interactive and some real, top tier talent. Here are my takeaways:
•The European market is in limbo with the recent Italian elections, and the continued weak economies in Italy, Spain and Crete. There is no bank money for resort development as the money is all committed to the bail-out initiatives the EU is working through.
•The timeshare market in Europe continues to fight uphill against past transgressions in marketing and sales. Add to that, the UK regulations that a timeshare/fraction has to be on leasehold versus fee.
•That said, very established sun areas, specifically theAlgarve in Portugal, continue to sell and plan new developments.
2. Seahorse Beach Club, Texas Gulf coast outside of Houston: We have now set our Beach Club and Pool and fractional home designs. FF&E continues to be a bit high, and we’re working on that. Our website will be up in the next two weeks, and premarketing will begin in April. Two observations:
•Houston residential real estate continues to boom. Yes, boom. The energy and medical sectors that dominate Houston are going up, up and up. Houston is our primary market just an hour away.
•First homes will be ready for occupancy in mid-August. The Ocean homes will be 5-bedroom/5 bath and the Bay homes will be 4 and 4. The Beach Club willopen spring 2014 featuring day use for owners who don’t want to stay the night. Pricing will reflect the start up nature of the project.
3. Future Deals: The Wall Street Journal had an article on the EB5 program focused on the Trapp Family Lodge in Vermont. On the Florida Keys project, previously reported on, the developer is currently in Shanghai rounding up the necessary funds to get that project underway.
•New Orleans—the hotel component is drawing terrific attention recently. So, we expect that part of the French Quarter square block to be put to bed shortly.
•Nakoma Golf Resort in the Sierra Nevada north of Lake Tahoe. We first visited in the early 2000s and went back this week. The resort welcomed new owners, savvy folks who will reintroduce the fractional product in the coming months.
Catching Up with Carl: February 2013
Seahorse Beach Club is on target for a spring opening. Last week, our team traveled to Texas to meet with architect Margit Whitlock, who designed the Beach Club, and home designer Alan Kent, who designed the Ocean and Bay homes. We approved almost-final plans for all the buildings. This is going to be one terrific amenity complex: Plans include a 75-foot pool some 13 feet off the ground, surrounded by a large deck plus a kiddie wading pool, and the Beach Clubhouse is replete with a movie theater, kids’ game room, bar, indoor and outdoor dining, treatment rooms, workout equipment, family changing room, three hotel-type rooms for prospects and owner rentals and a sales center.
Pat Hanes came down from outside of San Antonio to share tips on how to make Seahorse even more attractive to Texas buyers. As a result of Pat's comments, we plan to use the priority rotating reservation system first invented at Deer Valley and used by Star in all projects through 2005.
In conference news, I'm heading to London for the Leisure Real Estate Conference being held February 28th. This is the evolution of the Fractional Life Conference presented in past years, which I spoke at in 2011. I'll be speaking at the fractional breakout on Feasibility, Market Analysis & Program Design, and then again on Marketing and Sales. Later in the day, I'll participate in general session panel: The Resort Real Estate Market—Have We Reached the Bottom Yet? I fear that the UK and Europe are behind the U.S. in a recovery, so I'm unclear on what I can add. Our former World's Finest partner, Russell Bragg, is also speaking. We have been in touch on our respective areas, and it will be good to see him. The last time was 2011.
I attended the GNEX Conference in LA two weeks ago: It was very well presented and certainly posh, held at the famed Beverly Wilshire. Sharon and Paul Mattimoe of Perspective Magazines, which put on the conference, are very good marketers and business people, and it was nice to catch up with the many industry folk in attendance. Star is continuing to move ahead with Marvin Rappaport and Randy Rieger's Marathon Key project in the Florida Keys. It is an approved EB5 operation after years in the approval process. We are also working with Don Dauzat and his New Orleans, French Quarter project. Whatever happened to projects close to home?
Pat Hanes came down from outside of San Antonio to share tips on how to make Seahorse even more attractive to Texas buyers. As a result of Pat's comments, we plan to use the priority rotating reservation system first invented at Deer Valley and used by Star in all projects through 2005.
In conference news, I'm heading to London for the Leisure Real Estate Conference being held February 28th. This is the evolution of the Fractional Life Conference presented in past years, which I spoke at in 2011. I'll be speaking at the fractional breakout on Feasibility, Market Analysis & Program Design, and then again on Marketing and Sales. Later in the day, I'll participate in general session panel: The Resort Real Estate Market—Have We Reached the Bottom Yet? I fear that the UK and Europe are behind the U.S. in a recovery, so I'm unclear on what I can add. Our former World's Finest partner, Russell Bragg, is also speaking. We have been in touch on our respective areas, and it will be good to see him. The last time was 2011.
I attended the GNEX Conference in LA two weeks ago: It was very well presented and certainly posh, held at the famed Beverly Wilshire. Sharon and Paul Mattimoe of Perspective Magazines, which put on the conference, are very good marketers and business people, and it was nice to catch up with the many industry folk in attendance. Star is continuing to move ahead with Marvin Rappaport and Randy Rieger's Marathon Key project in the Florida Keys. It is an approved EB5 operation after years in the approval process. We are also working with Don Dauzat and his New Orleans, French Quarter project. Whatever happened to projects close to home?
Catching Up with Carl: December 2012
An experience we all used to know, but during this recession of four-plus years we may have forgotten, is the rush of setting up a new project. I’ve been getting the ‘rush’ back with Seahorse Beach Club.
Our challenge is to have inventory ready for use by next summer. To be realistic, we should have started last summer, but the reality is that we are beginning now. So, the tasks at hand: design the homes, design the Beach Club and pool, design and install project entry structures and site signage, construct the fishing and crabbing pier that goes out into Drum Bay, and install all of the soft amenities. On top of that, there’s the website, marketing materials, exchange program, buyer financing, documentation and registration plus a whole host of other items.
We have a terrific partner in John Howton, the original developer, as he understands business and best practices, and has ramped up his understanding of the resort development business and is passionate about the development of the Seahorse Beach Club.
Our senior marketing exec is Chris Cannon, whom we worked with in the early 2000s when we introduced World’s Finest Resorts. Chris then went on to working with Four Seasons, Raffles/Fairmont on foreign-based condo development programs. He was and is a real pro.
Our project director, Scott Tracy, has been with the company since Meriweather Ranch in the mid-2000s. He’s the company broker, chief administration officer, heads up escrow management and has his hands on all aspects of the project.
I am backed by my Star Resorts partner, Rich Feldheim, and our operations manager, Christine Dempsey.
Our sales and site marketing director has not yet been selected, but we have a couple of excellent candidates, and our pre-marketing will begin in March with sales in June.
Oh, did I mention that we have a distinct focus on fractions? A one-sixth or one-twelfth interest is available in either a 3,500 square foot beach home or a 2,500 square foot Bay home. Seahorse is a 36-unit home development and our horizon is to sell through it in 36 months beginning this coming summer. Being an hour's drive from six million people in Houston is our hole card. Man, the 'rush' feels good!
Our challenge is to have inventory ready for use by next summer. To be realistic, we should have started last summer, but the reality is that we are beginning now. So, the tasks at hand: design the homes, design the Beach Club and pool, design and install project entry structures and site signage, construct the fishing and crabbing pier that goes out into Drum Bay, and install all of the soft amenities. On top of that, there’s the website, marketing materials, exchange program, buyer financing, documentation and registration plus a whole host of other items.
We have a terrific partner in John Howton, the original developer, as he understands business and best practices, and has ramped up his understanding of the resort development business and is passionate about the development of the Seahorse Beach Club.
Our senior marketing exec is Chris Cannon, whom we worked with in the early 2000s when we introduced World’s Finest Resorts. Chris then went on to working with Four Seasons, Raffles/Fairmont on foreign-based condo development programs. He was and is a real pro.
Our project director, Scott Tracy, has been with the company since Meriweather Ranch in the mid-2000s. He’s the company broker, chief administration officer, heads up escrow management and has his hands on all aspects of the project.
I am backed by my Star Resorts partner, Rich Feldheim, and our operations manager, Christine Dempsey.
Our sales and site marketing director has not yet been selected, but we have a couple of excellent candidates, and our pre-marketing will begin in March with sales in June.
Oh, did I mention that we have a distinct focus on fractions? A one-sixth or one-twelfth interest is available in either a 3,500 square foot beach home or a 2,500 square foot Bay home. Seahorse is a 36-unit home development and our horizon is to sell through it in 36 months beginning this coming summer. Being an hour's drive from six million people in Houston is our hole card. Man, the 'rush' feels good!
Catching Up with Carl: November 2012
The election results are in: Last month, I said that if Romney won, the floodgates would open, and if Obama won, the market might come back as vacation home buyers wouldn’t defer vacation home ownership for another four years.
So, the latter has now happened.
I intend to focus on where I can find strength in the economy, in employment and in a positive attitude, and that's Texas!
Our Seahorse Beach Club project on the Gulf Coast, just an hour from Houston, is going to be a winner. Here's why:
1. I will shed my doom and gloom attitude as there's no gain to be in that mood for another four years!
2. Houston has more than six million residents.
3. The local economy, built on energy and medicine is, if not booming, doing very, very well. A Texan is a Texan!
4. We can build to suit as Seahorse is a collection of homes versus a vertical project.
5. We have just returned from Durango to see Gary Derck's structured-built home—the new phase of modular—and we are sold. As he said, "Why build it on the site if you can build it in the factory?" Delivery time is 120 days to occupancy. How about that?
6. This means we can be in the market to close next summer with quality housing built to our specs.
7. Seahorse will be mixed use: wholly owned homes plus two sizes of fractions.
8. We have heard that coming out of the recession [are we doing that?], the buyer will be more cautious, value oriented, thrifty, etc.
9. This may, just may, be the '"Return of the Fractional Interest."
What do you think? If there ever was a time for the product's rebirth, this is it. So, that's my story and I'm sticking to it. If you disagree, I invite you to share your thoughts with me!
We are still working on New Orleans, New York state, the Florida Keys and the Dominican Republic. So, project-loading for 2013.
So, the latter has now happened.
I intend to focus on where I can find strength in the economy, in employment and in a positive attitude, and that's Texas!
Our Seahorse Beach Club project on the Gulf Coast, just an hour from Houston, is going to be a winner. Here's why:
1. I will shed my doom and gloom attitude as there's no gain to be in that mood for another four years!
2. Houston has more than six million residents.
3. The local economy, built on energy and medicine is, if not booming, doing very, very well. A Texan is a Texan!
4. We can build to suit as Seahorse is a collection of homes versus a vertical project.
5. We have just returned from Durango to see Gary Derck's structured-built home—the new phase of modular—and we are sold. As he said, "Why build it on the site if you can build it in the factory?" Delivery time is 120 days to occupancy. How about that?
6. This means we can be in the market to close next summer with quality housing built to our specs.
7. Seahorse will be mixed use: wholly owned homes plus two sizes of fractions.
8. We have heard that coming out of the recession [are we doing that?], the buyer will be more cautious, value oriented, thrifty, etc.
9. This may, just may, be the '"Return of the Fractional Interest."
What do you think? If there ever was a time for the product's rebirth, this is it. So, that's my story and I'm sticking to it. If you disagree, I invite you to share your thoughts with me!
We are still working on New Orleans, New York state, the Florida Keys and the Dominican Republic. So, project-loading for 2013.
Catching Up with Carl: October 2012
Well, we’re back in business—it’s been a long haul. Save for a small Whitefish, Montana, project begun in the depths of 2009, Star has been fairly dormant since the fall of 2008. We’re typical of many in the resort business, I guess.
We continue to work on New Orleans, which offers abundant opportunity, and the four-season resort in central New York, where there is currently inventory to sell. Also, the Florida Keys deal continues in good, straight lines as its experienced developers find the best way to come to market.
Star also continues to work on the Seahorse Beach Club on the Texas Gulf Coast. It’s about an hour from boomtown Houston and 30 minutes south of Galveston, and will include whole and fractional homes right on the Gulf or on the Bay across the highway. Seahorse will be in presales spring of 2013 and in sales for the summer of 2013. We began looking at the project a year ago after its developer, John Howton, had come to the fractional conclusion on his own. Star was very cautious in proceeding, not being sure of consumer confidence, discretionary income and all the slow economic factors facing the nation.
It’s now less than two months until the election. Regardless of whom you favor running for president, one cannot ignore the state of the economy and the attendant low consumer confidence, lack of spending on big-ticket items and the limited bank financing. All these elements need to change for the resort real estate market to become robust again, and for fractions to become the product of choice that all research says they will be.
Here’s our assessment of the market. If Romney wins in November, then the dam will burst with pent-up demand. If Obama wins—and this is where our analysis gets dicey—the buyers will have to face four more years of his policies, but the buyers will return as they will not deny themselves their personal and family use of a resort property. The latter scenario will mean a slower up-take in sales.
Maybe 2013 will be a positive resort development and sales year? Boy, we sure hope so. We are ready!
We continue to work on New Orleans, which offers abundant opportunity, and the four-season resort in central New York, where there is currently inventory to sell. Also, the Florida Keys deal continues in good, straight lines as its experienced developers find the best way to come to market.
Star also continues to work on the Seahorse Beach Club on the Texas Gulf Coast. It’s about an hour from boomtown Houston and 30 minutes south of Galveston, and will include whole and fractional homes right on the Gulf or on the Bay across the highway. Seahorse will be in presales spring of 2013 and in sales for the summer of 2013. We began looking at the project a year ago after its developer, John Howton, had come to the fractional conclusion on his own. Star was very cautious in proceeding, not being sure of consumer confidence, discretionary income and all the slow economic factors facing the nation.
It’s now less than two months until the election. Regardless of whom you favor running for president, one cannot ignore the state of the economy and the attendant low consumer confidence, lack of spending on big-ticket items and the limited bank financing. All these elements need to change for the resort real estate market to become robust again, and for fractions to become the product of choice that all research says they will be.
Here’s our assessment of the market. If Romney wins in November, then the dam will burst with pent-up demand. If Obama wins—and this is where our analysis gets dicey—the buyers will have to face four more years of his policies, but the buyers will return as they will not deny themselves their personal and family use of a resort property. The latter scenario will mean a slower up-take in sales.
Maybe 2013 will be a positive resort development and sales year? Boy, we sure hope so. We are ready!
Sunday, July 01, 2012
Catching up with Carl - July 2012
Talking Timeshare, the weekly, two-hour radio program hosted by Mark Silverman, is part of a new wave of Internet radio programs. I was on for an hour last week with Mark lobbing me both soft and hard balls. I'm not sure who exactly tunes in, but the station has a bunch of sponsors, so apparently there are plenty of listeners out there.
In other news, Star is closing in on a project on theGulf Coast of Texas. Located south of Galveston, the project will include building sites on both the ocean and the bay. The plan is to build four bed/bath homes sold on both a whole and fractional basis. There's terrific rental income in the area, so that should help the larger fractions that are sold. The project is an hour from Houston, which is not feeling as much of the recession as is the rest of the country. Houston's business is centered on energy and medicine. We are eager to 'git at' those Texans.
I've just returned from New Orleans after having made multiple trips to assist in the packaging of a number of French Quarter properties. If funded, which looks promising by the way, there will be a major mixed-use project comprised of a hotel, hotel condos, regular condos, fractional and timeshare condos along with plenty of retail and parking lots. Talk about mixed use!
The other parcels are more condos and mid-rise parking. As you can imagine, parking in the Quarter is a major deal. The local team is first rate, and property values in the Quarter have jumped 25% in the past year. The only negative is that those folks really believe the New Orleans Saints can win their conference and host the Super Bowl to be held in NOLA in February. Naturally, it will be the 49ers there instead.
Our business continues to be dogged by lagging consumer confidence, as you are aware, and a very sluggish economy. So, any starts Star has will be gradual in the hopes that 2013 and 2014 will see us come out of the current malaise.
I want to give a 'shout out' to the 4,000-plus members of LinkedIn that are members of the Luxury Fractional Group and of the Luxury Resort Development Group. Both were put together by Bruce Cuthbertson. If you haven't joined already, feel free to click the links above to do so.
In other news, Star is closing in on a project on theGulf Coast of Texas. Located south of Galveston, the project will include building sites on both the ocean and the bay. The plan is to build four bed/bath homes sold on both a whole and fractional basis. There's terrific rental income in the area, so that should help the larger fractions that are sold. The project is an hour from Houston, which is not feeling as much of the recession as is the rest of the country. Houston's business is centered on energy and medicine. We are eager to 'git at' those Texans.
I've just returned from New Orleans after having made multiple trips to assist in the packaging of a number of French Quarter properties. If funded, which looks promising by the way, there will be a major mixed-use project comprised of a hotel, hotel condos, regular condos, fractional and timeshare condos along with plenty of retail and parking lots. Talk about mixed use!
The other parcels are more condos and mid-rise parking. As you can imagine, parking in the Quarter is a major deal. The local team is first rate, and property values in the Quarter have jumped 25% in the past year. The only negative is that those folks really believe the New Orleans Saints can win their conference and host the Super Bowl to be held in NOLA in February. Naturally, it will be the 49ers there instead.
Our business continues to be dogged by lagging consumer confidence, as you are aware, and a very sluggish economy. So, any starts Star has will be gradual in the hopes that 2013 and 2014 will see us come out of the current malaise.
I want to give a 'shout out' to the 4,000-plus members of LinkedIn that are members of the Luxury Fractional Group and of the Luxury Resort Development Group. Both were put together by Bruce Cuthbertson. If you haven't joined already, feel free to click the links above to do so.
Friday, June 01, 2012
Catching up with Carl - June 2012
As we all know, the U.S. economy lurches in fits and starts—good news is followed by negative news on consumer confidence, job creation and the like. We have yet to see what exactly the new reporting requirements for community banks, which supply much of the necessary capital for our projects, will mean.
I could not attend the ULI’s Recreational Development Council in May, but from reports, there was some upbeat news (economists aside). On the whole unit side, there are sales of new inventory of smaller houses and cottages (such as the successfulTalking Rock Ranch in Prescott, AZ), as well as the very high end, which continues to perform well. What’s left of distressed homes will sell if the price is right. At least we know the demand is still there for second homes; the younger boomers and the older Gen Xers see the value in quality family time and the multi-generational aspect of vacation home ownership.
On the downside, Daniel Alpert reports from ULI that 23% of all homes in the U.S. are under water. I know we’ve all heard the statistics before, but one in four homes—wow. It’s certainly holding down any recovery in our sector. However, the Wall Street Journalrecently reported that foreign buyers, particularly Canadians, are very active, which is some good news for the areas they travel.
In other updates, Sherman Potvin reports that his inquiries are few and far between and mainly raw land as there’s little or no money available for building. Here at Star, we continue to work on deals on the Gulf Coast of Texas and in New Orleans. The money is elusive; here, but not on the table. Gosh, this has been going on for near four years now!
Some positive news: Timbers Resorts continues its streak as it picks up yet another project in Northern California wine country (can they make the golf course any more playable?) and opens the hotel portion of its Tuscany project. And, Auberge Resorts has expanded into Oregon. Auberge is unique in that it manages small, luxury properties, many with a fractional component, allowing the company to really understand the “demands” of owners. A big congratulations to Auberge Resorts and CEO Mark Harmon.
I could not attend the ULI’s Recreational Development Council in May, but from reports, there was some upbeat news (economists aside). On the whole unit side, there are sales of new inventory of smaller houses and cottages (such as the successfulTalking Rock Ranch in Prescott, AZ), as well as the very high end, which continues to perform well. What’s left of distressed homes will sell if the price is right. At least we know the demand is still there for second homes; the younger boomers and the older Gen Xers see the value in quality family time and the multi-generational aspect of vacation home ownership.
On the downside, Daniel Alpert reports from ULI that 23% of all homes in the U.S. are under water. I know we’ve all heard the statistics before, but one in four homes—wow. It’s certainly holding down any recovery in our sector. However, the Wall Street Journalrecently reported that foreign buyers, particularly Canadians, are very active, which is some good news for the areas they travel.
In other updates, Sherman Potvin reports that his inquiries are few and far between and mainly raw land as there’s little or no money available for building. Here at Star, we continue to work on deals on the Gulf Coast of Texas and in New Orleans. The money is elusive; here, but not on the table. Gosh, this has been going on for near four years now!
Some positive news: Timbers Resorts continues its streak as it picks up yet another project in Northern California wine country (can they make the golf course any more playable?) and opens the hotel portion of its Tuscany project. And, Auberge Resorts has expanded into Oregon. Auberge is unique in that it manages small, luxury properties, many with a fractional component, allowing the company to really understand the “demands” of owners. A big congratulations to Auberge Resorts and CEO Mark Harmon.
Sunday, April 01, 2012
Catching up with Carl - April 2012
I’ve recently returned from the ARDA World Convention, which was held in Las Vegas April 1–5. It’s still very heavily timesharing, and let me say that I found it energizing to attend. I went just for the day on April 4, and was able to make a lunch held for former ARDA chairs, which is a really nice event sponsored by ARDA.
How grand to see Bert Blicher, Deb Linden, Bob Miller, Jon Fredricks, Don Harrill (ARDA current chair), Franz Hanning (chair-elect) and Bill Ingersoll,whom I first met in 1972! What a time warp. And, of course, the irrepressible Howard Nusbaum. I’m pleased to report that everyone is doing quite well: Bert has bought a resale company, and will be the first resale operation led by a developer and to ‘do it right’. Deb’s son is going to college, gosh her wedding was just yesterday! Jon at Welk continues to grow and add projects, Don at Holiday Inn is on a roll, Franz at Wyndham is the big gun in terms of sales and member families, and Bob has spun Marriott Vacations Worldwide into a separate public company. Bill is the only one with the sense to be retired, but that’s not specifically true as he’s got to manage Stu Bloch. Speaking of the “Bloch-busta,” he and Bob Wengel won the golf tourney this year!
ARDA also gave me the chance to catch up with other colleagues: Art Spaulding, Michael and Christine Butler, and The Ragatz himself along with daughter and fractional pro Tracy. Of course, I can’t leave out the dynamic duo of Gregg Anderson and Michele Combs from the Registry Collection, and David McDonald, who was a wave in the hallway between meetings. The A team was there!
Also in attendance were those whom I have followed in their businesses from inception: June and Mel Grantfrom SFX Exchange, Brian Rock from VacationGuard and Marc Saxe of Resort Opportunities. These folks, who have made successful businesses from their original ideas, were thrilling to catch up with.
I was able to enjoy an excellent breakfast with former business partner John Kazanjian, who I had not seen in, what, 5 years?! Old friends should not let that happen. I also caught a few good moments with PR proGeorgie Bohrod and architect extraordinaire Rick Hulbert. Perhaps the most inspirational part of the trip, however, was seeing all the young kids who are committed to an industry that I helped to found.
So, back to business after all this name dropping: I am more fully convinced that the real market won’t be back until after the elections; one way or another, our customers will make their move. We are closing in on a Texas venture and have a couple more serious candidates for work and/or ventures. Each deal has some hair on it, but what would one expect after three and a half years of recession?
How grand to see Bert Blicher, Deb Linden, Bob Miller, Jon Fredricks, Don Harrill (ARDA current chair), Franz Hanning (chair-elect) and Bill Ingersoll,whom I first met in 1972! What a time warp. And, of course, the irrepressible Howard Nusbaum. I’m pleased to report that everyone is doing quite well: Bert has bought a resale company, and will be the first resale operation led by a developer and to ‘do it right’. Deb’s son is going to college, gosh her wedding was just yesterday! Jon at Welk continues to grow and add projects, Don at Holiday Inn is on a roll, Franz at Wyndham is the big gun in terms of sales and member families, and Bob has spun Marriott Vacations Worldwide into a separate public company. Bill is the only one with the sense to be retired, but that’s not specifically true as he’s got to manage Stu Bloch. Speaking of the “Bloch-busta,” he and Bob Wengel won the golf tourney this year!
ARDA also gave me the chance to catch up with other colleagues: Art Spaulding, Michael and Christine Butler, and The Ragatz himself along with daughter and fractional pro Tracy. Of course, I can’t leave out the dynamic duo of Gregg Anderson and Michele Combs from the Registry Collection, and David McDonald, who was a wave in the hallway between meetings. The A team was there!
Also in attendance were those whom I have followed in their businesses from inception: June and Mel Grantfrom SFX Exchange, Brian Rock from VacationGuard and Marc Saxe of Resort Opportunities. These folks, who have made successful businesses from their original ideas, were thrilling to catch up with.
I was able to enjoy an excellent breakfast with former business partner John Kazanjian, who I had not seen in, what, 5 years?! Old friends should not let that happen. I also caught a few good moments with PR proGeorgie Bohrod and architect extraordinaire Rick Hulbert. Perhaps the most inspirational part of the trip, however, was seeing all the young kids who are committed to an industry that I helped to found.
So, back to business after all this name dropping: I am more fully convinced that the real market won’t be back until after the elections; one way or another, our customers will make their move. We are closing in on a Texas venture and have a couple more serious candidates for work and/or ventures. Each deal has some hair on it, but what would one expect after three and a half years of recession?
Thursday, March 01, 2012
Catching up with Carl - March 2012
A breath of fresh air—finally! After three-plus years in the doldrums of recession, there appears to be hope.
I just returned from the Ragatz Conference held this year in Scottsdale. Some highlights: glorious weather and good hotel meeting rooms; a first-class outdoor reception replete with a golf contest to benefit Christel House and, afterward, an elegant and fun dinner courtesy of Gregg Anderson, who heads up the Registry Collection; and, for the second year, the socko business card exchange roundup managed by Rob Webb and Howard Nussbaum. I first saw the business card exchange at Fractional Life in London thanks to Piers Brown, who, by the way, will host his U.S. Fractional Life Conference this October in Denver.
Now, on to the substance: Dick Ragatz and his seasoned team put on an excellent conference this year. I think the best innovation was to have a panel with three researchers, all good by the way, moderated by the talented Michele Combs of the Registry Collection, and then followed by my panel with four users of research, Pat Hanes, Sean Zimmerman, Gary Moore andGregg Anderson. So, we had the theory followed by the practical.
Later in the day, Gregg moderated the first of two panels on marketing resort real estate with Dick moderating the second one. Gregg’s was on new media, and it was riveting!
It was good catching up with others in the industry: Jim Chaffin, a powerhouse developer and ULI leader, is doing a Maryland coastal project with fractional units. Meanwhile, Keith Cox of Resort Equities is on a super tear, adding staff and businesses, all while continuing to represent Ragatz Realty and turning consulting clients into business partners. He’s become a formidable conglomerate in the business, and is aided by the ever-talented Greg Traxler and others too numerous to mention.
And, wonderful to see old friends, especially Stuart Woolley, late of the Running Y and Eagle Crest, who is now semi-retired and selling ski hills with Jerry Andres, former ARDA Chair and ECO of Eagle Crest and founder of Trend West.
The overall feeling of the attendees was that 2012 would be better than the previous years (we hope so!) with many believing that it would be materially better. To exhibit the general sophistication of the
I just returned from the Ragatz Conference held this year in Scottsdale. Some highlights: glorious weather and good hotel meeting rooms; a first-class outdoor reception replete with a golf contest to benefit Christel House and, afterward, an elegant and fun dinner courtesy of Gregg Anderson, who heads up the Registry Collection; and, for the second year, the socko business card exchange roundup managed by Rob Webb and Howard Nussbaum. I first saw the business card exchange at Fractional Life in London thanks to Piers Brown, who, by the way, will host his U.S. Fractional Life Conference this October in Denver.
Now, on to the substance: Dick Ragatz and his seasoned team put on an excellent conference this year. I think the best innovation was to have a panel with three researchers, all good by the way, moderated by the talented Michele Combs of the Registry Collection, and then followed by my panel with four users of research, Pat Hanes, Sean Zimmerman, Gary Moore andGregg Anderson. So, we had the theory followed by the practical.
Later in the day, Gregg moderated the first of two panels on marketing resort real estate with Dick moderating the second one. Gregg’s was on new media, and it was riveting!
It was good catching up with others in the industry: Jim Chaffin, a powerhouse developer and ULI leader, is doing a Maryland coastal project with fractional units. Meanwhile, Keith Cox of Resort Equities is on a super tear, adding staff and businesses, all while continuing to represent Ragatz Realty and turning consulting clients into business partners. He’s become a formidable conglomerate in the business, and is aided by the ever-talented Greg Traxler and others too numerous to mention.
And, wonderful to see old friends, especially Stuart Woolley, late of the Running Y and Eagle Crest, who is now semi-retired and selling ski hills with Jerry Andres, former ARDA Chair and ECO of Eagle Crest and founder of Trend West.
The overall feeling of the attendees was that 2012 would be better than the previous years (we hope so!) with many believing that it would be materially better. To exhibit the general sophistication of the
Wednesday, February 01, 2012
Catching up with Carl - February 2012
Star is now awash in deals! So, what happened? Either developers got antsy and finally decided to make a move, or it's just a bubble. We’ll see. However, the reality is that—until the economy gets its legs and consumers regain confidence—it will be hard to get sales. That said, this is the time for deals and planning for sales. Yes, employment got a shot, but the coming months are going to tell the tale. And, what of inflation? Will it not come?
Star is tracking deals in Texas, New York, Colorado, Louisiana and North Carolina. All projects, save one, need money, but that's expected. Almost all have inventory ready to sell, which got hung up with the recession. Some have willing bankers, others not.
We are a Gold Sponsor of the Ragatz Conference, held March 12–13 in Scottsdale, Arizona. Organizers expect around 250 attendees, certainly down from the good years, but better than 2011. Star will have a full complement in tow. I am moderating one session and sitting on another panel. It will be interesting to see who turns out this year: those looking for a job or those looking to staff up a project? Dick Ragatz has powered on through the recession, and our hope is that a broader representation of registrants attends this year than the past two years.
I've taken over two discussion groups on LinkedIn: Luxury Resort Development Group and Luxury Fractional Group. They total about 3,500 members—more than half of whom come from outside the USA—with some 8 to 12 new members joining every day. There are many deals in the two groups, though I’m not sure how many ever get taken up. The daily ebb and flow is very interesting to follow. We know this is the era of connectivity.
I ran into Bobby Coats of the Registry Collection in Kalispell, Montana, on February 2nd, and he confirmed little action for Registry but good activity for timeshares. On that note, Bob Wengel reports from Vegas that the more budget-priced timeshares are selling at a fast pace.
To be sure, this February looks better than the past three Februarys. So, that’s a start!
Star is tracking deals in Texas, New York, Colorado, Louisiana and North Carolina. All projects, save one, need money, but that's expected. Almost all have inventory ready to sell, which got hung up with the recession. Some have willing bankers, others not.
We are a Gold Sponsor of the Ragatz Conference, held March 12–13 in Scottsdale, Arizona. Organizers expect around 250 attendees, certainly down from the good years, but better than 2011. Star will have a full complement in tow. I am moderating one session and sitting on another panel. It will be interesting to see who turns out this year: those looking for a job or those looking to staff up a project? Dick Ragatz has powered on through the recession, and our hope is that a broader representation of registrants attends this year than the past two years.
I've taken over two discussion groups on LinkedIn: Luxury Resort Development Group and Luxury Fractional Group. They total about 3,500 members—more than half of whom come from outside the USA—with some 8 to 12 new members joining every day. There are many deals in the two groups, though I’m not sure how many ever get taken up. The daily ebb and flow is very interesting to follow. We know this is the era of connectivity.
I ran into Bobby Coats of the Registry Collection in Kalispell, Montana, on February 2nd, and he confirmed little action for Registry but good activity for timeshares. On that note, Bob Wengel reports from Vegas that the more budget-priced timeshares are selling at a fast pace.
To be sure, this February looks better than the past three Februarys. So, that’s a start!
Sunday, January 01, 2012
Catching up with Carl - January 2012
Life exists out there! Developers are beginning to stir. They have partially sold inventory that they need to sell for a number of reasons: getting stale, to work down bank loans, hopes that the economy is turning around, etc.
Star has been contacted by a number of developers to design work-through programs. The good news is that these are regional resorts where the market should come back first. The exception might be in Aspen, where the market never really went away, at least compared to other resorts.
Fractions have been 'missing in action' during the financial collapse and recession for reasons discussed before. But, as the seers have been saying, when the market comes back, the fractional interest will be the product of choice, again, for all the aforementioned reasons.
Will investors look at otherwise healthy resorts, where pricing is right, as an investment opportunity and finally leave the chase for buying damaged assets for cents on the dollar? We don't know that yet. But, there is an indicator or two that this may be the case. The ability to buy into a resort or project that has been well maintained and well positioned to re-enter the market with good to excellent margins should be appealing to knowledgeable investors.
There are obvious markets that have not been hyper-damaged by the recession. Texas stands out. As does New England, where prices did not crater as in other areas of the country.
Our approach has been cautious. We have poked and prodded the primary and secondary markets. We have probed the projects to see if there are fatal flaws. We have recommended use plans that fit the primary market, so in some cases there will be use plans within use plans.
It's clear that the market for buying a vacation home is still traumatized, but if the offering fits the specific lifestyle of the buyer and if the buyer will consider making an investment for his kids, then a sale will go down.
What of Gen X? We think they will be the driving force in the coming year or two. And thereafter, too, if the fractional product, pricing and lifestyle can stay attentive to Gen X needs. What say Chris Kelsey?
Damn, it's good to be back in business!
Star has been contacted by a number of developers to design work-through programs. The good news is that these are regional resorts where the market should come back first. The exception might be in Aspen, where the market never really went away, at least compared to other resorts.
Fractions have been 'missing in action' during the financial collapse and recession for reasons discussed before. But, as the seers have been saying, when the market comes back, the fractional interest will be the product of choice, again, for all the aforementioned reasons.
Will investors look at otherwise healthy resorts, where pricing is right, as an investment opportunity and finally leave the chase for buying damaged assets for cents on the dollar? We don't know that yet. But, there is an indicator or two that this may be the case. The ability to buy into a resort or project that has been well maintained and well positioned to re-enter the market with good to excellent margins should be appealing to knowledgeable investors.
There are obvious markets that have not been hyper-damaged by the recession. Texas stands out. As does New England, where prices did not crater as in other areas of the country.
Our approach has been cautious. We have poked and prodded the primary and secondary markets. We have probed the projects to see if there are fatal flaws. We have recommended use plans that fit the primary market, so in some cases there will be use plans within use plans.
It's clear that the market for buying a vacation home is still traumatized, but if the offering fits the specific lifestyle of the buyer and if the buyer will consider making an investment for his kids, then a sale will go down.
What of Gen X? We think they will be the driving force in the coming year or two. And thereafter, too, if the fractional product, pricing and lifestyle can stay attentive to Gen X needs. What say Chris Kelsey?
Damn, it's good to be back in business!
Tuesday, November 01, 2011
Catching up with Carl - November 2011
I just returned from Urban Land Institute's annual meeting and the semiannual meeting of the Recreational Development Council. Here's some of the news:
No one is enjoying robust sales, though a few, like Martis Camp in the Sierra Nevada, have seen good sales in 2011.
The bottom fishing is still going on with prices in Vail; some are even 30+% below 'back then'. Second-tier resort properties are discounted higher. The worst possible holding is entitled land without improvements. It's currently priced as the agriculture land it once was.
Buyers of resort projects, the big lot sales deals, have mainly been the very wealthy who are buying and holding. Interestingly, the buys, both personal and institutional, were at 20-30% of debt in 2010; in 2011, they are lower, like 10-15%. So, the sellers are realizing how bleak the landscape is. And some of the institutions are facing reality.
Consumer research [presented by Peter Yesawich of Y Partnership and Brooke Warrick of American Lives] validates that permanent changes have occurred with the wealthy post September 2008. There is a greater inward focus versus conspicuous showing off, and more emphasis on family. For sure, the youngest boomers and the Gen Xers take their kids everywhere, as we all have seen. And, as we know, everyone is placing more emphasis on value.
So, the wealthy are cutting back on the conspicuous areas, but not cutting out their interest in those things that benefit their family. Then, there's the multi-generational movement that continues to pick up speed.
Our workweeks have increased to 48 hours, the highest in the world for tier-one economies. And work is not ever left behind. We in the business need to provide the facilities to efficiently stay in touch. Then, there's personalization that we all are getting more and more used to. We want everything our way, and can usually get it. What does that say for vacation homes, use plans and amenities and activities?
Walking and bike paths— the least costly amenity (or no cost, such as in Whitefish, where the city has supplied them)—are among the most valuable amenities for reasons of health and sharing time. The happiest folk are those who have human interaction for at least six hours a day.
Peter continues to be a major fan of shared ownership as fitting all the trends of vacationing Americans. One reason is that buyers of resort property do not believe in appreciation anymore, so the shared product, bought for use, makes the most sense. Let it roll, Peter!
No one is enjoying robust sales, though a few, like Martis Camp in the Sierra Nevada, have seen good sales in 2011.
The bottom fishing is still going on with prices in Vail; some are even 30+% below 'back then'. Second-tier resort properties are discounted higher. The worst possible holding is entitled land without improvements. It's currently priced as the agriculture land it once was.
Buyers of resort projects, the big lot sales deals, have mainly been the very wealthy who are buying and holding. Interestingly, the buys, both personal and institutional, were at 20-30% of debt in 2010; in 2011, they are lower, like 10-15%. So, the sellers are realizing how bleak the landscape is. And some of the institutions are facing reality.
Consumer research [presented by Peter Yesawich of Y Partnership and Brooke Warrick of American Lives] validates that permanent changes have occurred with the wealthy post September 2008. There is a greater inward focus versus conspicuous showing off, and more emphasis on family. For sure, the youngest boomers and the Gen Xers take their kids everywhere, as we all have seen. And, as we know, everyone is placing more emphasis on value.
So, the wealthy are cutting back on the conspicuous areas, but not cutting out their interest in those things that benefit their family. Then, there's the multi-generational movement that continues to pick up speed.
Our workweeks have increased to 48 hours, the highest in the world for tier-one economies. And work is not ever left behind. We in the business need to provide the facilities to efficiently stay in touch. Then, there's personalization that we all are getting more and more used to. We want everything our way, and can usually get it. What does that say for vacation homes, use plans and amenities and activities?
Walking and bike paths— the least costly amenity (or no cost, such as in Whitefish, where the city has supplied them)—are among the most valuable amenities for reasons of health and sharing time. The happiest folk are those who have human interaction for at least six hours a day.
Peter continues to be a major fan of shared ownership as fitting all the trends of vacationing Americans. One reason is that buyers of resort property do not believe in appreciation anymore, so the shared product, bought for use, makes the most sense. Let it roll, Peter!
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