Hotel-Condo Conversions A Low Cost Option to Preconstruction
Condotel conversions can offer faster profits, faster rental income, lower dollar investment, seasoned rental management, and pre-sale viewing.
Though condo conversions are often looked upon as the “step-child” of preconstruction investing, there are several compelling points that can be made for choosing this type of investment real estate in addition to, or instead of, the current craze for preconstruction condos.
New Resorts LLC, a company in North Myrtle Beach that is dedicated to marketing and development of preconstruction and condotel projects, presently has conversion units available in several of the top resorts.
In Myrtle Beach, the redevelopment and conversion of the Sea Mist Resort, a 12 acre project that promises to change the look of the beach in that area, offers two oceanfront buildings as conversion units. Priced in the low to mid $100’s, buying a studio condominium in Sea Mist is almost within reach of anyone interested in purchasing a vacation or rental property.
Next door to Sea Mist is the fantastic Coral Beach Resort, which offers amenities that include numerous pools, lazy rivers, larger units, and even an on-site bowling alley. Coral Beach is also priced well below normal for any oceanfront preconstruction condo- from $200K to $400K- based on size and proximity to the ocean.
Conversions Offer Lower Costs
Since construction costs are less, the prices of hotel-condo conversions are often as much as half the price of a proposed new resort project.
Units are usually renovated extensively inside, and in the commons-areas, however, the building structure itself is not changed. This results in savings to the buyer as building costs now are ever increasing.
Short Length of Time For Renovation
The time span from sales release to closing on a conversion resort project is typically only about 3-8 months, as versus 1 to 2 years for a new preconstruction condo. Investors planning to “flip” the unit before closing can see a faster return of their down payment, and those who intend to keep the condo for rental purposes are able to start receiving income from vacation rentals very quickly after the initial purchase. For those concerned about any slow-down in the real estate industry, this provides an extra bit of security...realizing the results of their investment in just a few month’s time.
Established Rental Management
Typically, the on-site rental structure remains intact, providing seasoned and experienced employees and even a loyal vacationing clientele. This provides maximum rentals and income for the new owners, and little or no “break-in” time for the office staff.
There are a very limited number of condotel conversions available on the Grand Strand these days, as most of the hotels are being torn down for new preconstruction condos, or have already been renovated. The hotel conversions that are available now are of exceptional quality, with luxury amenities equivalent to the new resorts. With a lower cost, they are perfect for the first time investor, or those who might like to have multiple rental units in the same, or different resorts.
Says David O’Connell, New Resorts’ head, and local expert in the preconstruction and investment real estate field, “Buying condotel conversions or new preconstruction is still the hottest thing around, and Myrtle Beach is still the ultimate market for the best prices and vacation rental potential.” The Sea Mist and Coral Beach Resorts are an excellent value and investment and represent the prime resort opportunities in the area.”
New Resorts markets the resorts directly for the developers, most notably Strand Capital Group, LLC, which is one of the most well known and highly reputable resort developers in the Myrtle Beach area.
Comments(0)