Can A Condotel Be Completed On A 1073?

[Ken B]

They aren't like a time share.

A typical condo-hotel consists of residential units, commercial units, and the hotel unit. The structural elements and common areas in which a residential unit owner might have an undivided ownership interest in a traditional condominium are a component of the hotel unit ownership interests in a condo-hotel.

 

[Meandering]

A condo-hotel is legally structured so that those components of the property in which traditional condominium unit owners have an undivided interest are actually owned by the hotel unit. Common area elements are virtually non-existent. Unit owners in a condo-hotel literally own the paint on the walls and ceiling, the carpet on the floors, and the air in between. And that is all.

A key aspect of a condo-hotel unit is that the unit can only be leased through the hotel operation. Naturally, marketing will tell a prospective owner how much they can make by leasing the unit when the owner doesn't occupy it. Naturally, they understate the maintenance fees you pay (for property in which you have no ownership interest except right of use when you occupy the unit) and the grossly overstate the occupancy rate. Some operations limit the time an owner can occupy the unit.

They are a sucker's game.

So, it's more investment type property? time share equivalent? I would not call it 1-4 residential if it's only part time use by the unit owner.

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[Ken B]

JG, if you are familiar with a luxury SFR residential development in west BB located across from a thoroughbred training facility, you may know that the development has, as a common element, a horse boarding facility for those owners who don't wish to keep their horses boarded on their home site. What you may not know is that the stable is an optional amenity and the stalls may be purchased by non-residents of the development. If you lease a stall, you do so through the stable operator.

That facility is legally structured as a condo-hotel. I did an appraisal on unsold stalls at the facility a number of years ago. Stall owners literally own the air between stall walls and 6" of dirt below that air. Nothing else. It was one of the strangest appraisals I had done.

 

[J Grant]

JG, if you are familiar with a luxury SFR residential development in west BB located across from a thoroughbred training facility, you may know that the development has, as a common element, a horse boarding facility for those owners who don't wish to keep their horses boarded on their home site. What you may not know is that the stable is an optional amenity and the stalls may be purchased by non-residents of the development. If you lease a stall, you do so through the stable operator.

That facility is legally structured as a condo-hotel. I did an appraisal on unsold stalls at the facility a number of years ago. Stall owners literally own the air between stall walls and 6" of dirt below that air. Nothing else. It was one of the strangest appraisals I had done.

Are you referring to Equus? They have a stable with condo stalls for horses (only in America, right?), separate from the single family residences. That does sound like a strange one, appraising the stalls! I have appraised houses there (without stall ownership) I do not know all the history of the stable but have heard it had issues over the years and was half empty, they have new management and may have bought out some of the condo stalls to straight board to public, not sure...they are big money polo based so may be using some of the stalls for polo ponies.

I own a horse and keep him in a facility called Sunshine Meadows in Delray Beach . The barns were all condos at one time owned by race horse trainers. Some still are, others sold out to a management company /owner who leases the stalls out.

I've appraised a couple of "dockmominums", kind of similar ...the waterfront dock is it own condo unit. Can be sold with or without the condo apartment. Talk about strange.....

 

[Ken B]

So, it's more investment type property? time share equivalent? I would not call it 1-4 residential if it's only part time use by the unit owner.

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Here is a listing for one: (deleted)

Try this link instead: http://www.movoto.com/weston-fl/250-racquet-club-rd-3-413-weston-fl-33326-432_a1983131/

 

[Meandering]

You have to log in to see the listing.

 

[Ken B]

Are you referring to Equus? They have a stable with condo stalls for horses (only in America, right?), separate from the single family residences. That does sound like a strange one, appraising the stalls! I have appraised houses there (without stall ownership) I do not know all the history of the stable but have heard it had issues over the years and was half empty, they have new management and may have bought out some of the condo stalls to straight board to public, not sure...they are big money polo based so may be using some of the stalls for polo ponies.

I own a horse and keep him in a facility called Sunshine Meadows in Delray Beach . The barns were all condos at one time owned by race horse trainers. Some still are, others sold out to a management company /owner who leases the stalls out.

I've appraised a couple of "dockmominums", kind of similar ...the waterfront dock is it own condo unit. Can be sold with or without the condo apartment. Talk about strange.....

Yes, and I know. Well, not where you board your horse. That would be a little too stalk-ish. I just remember what you have posted here...

lol...that reminded me of a time when, where I previously lived on a couple acres by a lake out in the country, relatives and friends of a part-time resident drove a couple hours to that neighbor's house, but forgot the key or couldn't find a hidden key, or something like that. There was no cell phone reception, so they stopped by my house, where I was a full-time resident and asked to borrow the phone. Long story short - I popped the door from their garage into the home and let them in. I said something about it being that easy and showed my "favorite credit card for doing that job." Then I noticed it got really quite and they were looking at me very strange.

I realized what I had said and explained that I was an appraiser and sometimes needed to get into new construction for final inspections. When a builder would fail to have a door open on the inspection date, I would improvise. That got a nervous "ohhhhh" and I decided it was time to go home.

 

[DTB]

Ken what would be the price difference between that unit and a more traditional condo unit of similar attributes and amenities? I'm more of a Gulf Coaster but would like to get a handle on the nuances.

TIA

 

[Ken B]

I don't know off the top of my head. Maybe if any residential Florida appraisers are lurking, they can answer. I just knew that property was a condo-hotel, so it was the first place I looked.

 

[J Grant]

Would be impossible to answer generically. The best comparison is a similar condo hotel unit building to traditional condo in same location The last one I did was a year ago, prior to that a gap of several years . If I remember correctly, there was not a big price difference , the condo hotel units sold for 1 around 10% lower than similar in a non condo hotel complex.