"The hybrid concept of a luxury hotel that sells some of its units as condominiums has become one of the most popular trends in the industry in recent years," Owais Khanini, a development principal in Sage Resort, tells GlobeSt.com. "Condo-hotels in the past two or three years have expanded beyond traditional markets in ski resorts or Hawaii and have established themselves in other tourist destinations such as Orlando and Las Vegas." Khanini says Orlando has "great potential" for the condominium hotel market.
Turkey Lake Partners LLC and Ryze Development LLC, both locally based, are co-developing Sage Resort. Khanini is founder and president of Ryze Development. The other development principals are William T. Gaudry, president and co-managing member of EMG Design Group LLC, and Charles C. Frey, co-managing member and founder of Sun Resorts Holding LLC.
Forbes Hamilton Management Co. of Orlando is the onsite property manager for the project which is five miles from Walt Disney World and about 1.5 miles from Sea World in south Orlando. ResortQuest and Weichert Realtors make up the project's brokerage and marketing team. Locally based Scott Partnership Architecture Inc. is designing Sage Resort.
In their pro forma, the developers envision Sage Resort as "a highly profitable development." They place the projected gross sellout of the project at $130.3 million and a total development cost of $93.2 million. That figure, however, has now been revised to $104 million. On the earlier $93.2-million projection, the developers expected a profit before financing costs of $37.1 million and a pre-finance expense profit margin of 28.49%.
In their earlier projections, the developers anticipated selling the condo hotel units at an average $382 per sf. Khanini calls that number "highly supportable based on comparable sales of luxury hotel condominiums in the Orlando area." He says the average price of hotel condo units in the Orlando market is about $444 per sf. The developers based their own sales projections on $382 per sf.
To date, the developers have sold 156 units at an average $480,769 per unit. The Sage Resort tower is expected to have 437,617 gross sf and net sellable sf of 341,201 sf.
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