July 31–The Related Group of Miami has announced plans for a second phase of the sold-out Hyde Resort & Residences under construction in Hollywood.
Hyde Beach House Hollywood at 4000 S. Ocean Drive will be a 40-story tower with 77 condominiums and 265 condo-hotel units. Carlos Rosso, head of the condo division for Related, said buyers have reserved roughly half of the 342 units, with prices ranging from $430,000 to $1 million.
Owners will have membership at Hyde Beach Kitchen + Cocktails, a three-story club on site. Construction is expected to begin next year and be completed in 2018.
Related is partnering with 13th Floor Investments, Key International and hospitality group sbe on the project at the Intracoastal Waterway near the ocean. It’s across the street from Hyde Resort & Residences, which is due to open in 2016.
An entity tied to Related owned the note on the two-acre Hyde Beach House site and asked $16.7 million at a foreclosure auction last year. The bidding reached only about $750,000, so Related kept the property and planned to develop it.
This will be the firm’s third condo-hotel in southern Broward County. Aside from the two Hyde projects, it also built the 33-story Beachwalk Resort, which opened May 1 in Hallandale Beach. In Fort Lauderdale, Related is working to revive the W condo-hotel project.
Condo-hotels serve as vacation homes, which are rented to the general public when the owners aren’t living there. The buildings are professionally managed and usually include maid and concierge services.
But the concept fell out of favor during the housing bust, in part because rental income wasn’t enough to cover buyers’ maintenance fees and other expenses.
Rosso said management companies typically kept half of the rental income, but Related is using a firm that will charge only what it costs to rent the units and not keep any share of the income. The condo-hotel concept had such a negative connotation, Rosso said, that Related prefers the term “resort condominiums.”
“Buyers really are getting a great deal,” Rosso said. “The U.S. economy is recovering, the future has everybody excited, and it creates value.”
Peter Zalewski, principal of the CondoVultures.com consulting firm, said Related essentially has a “conveyor belt system” for building condo-hotels in Hollywood, capitalizing on the influx of visitors from the Northeast and Canada who don’t need or want a unit year-round.
But one issue looming for Related is the weakening of the Canadian dollar that is making it less advantageous for Canadians to buy a place here, Zalewski said.
“I think Related will get a little pushback from buyers who don’t have the wherewithal to buy the way they used to,” he said.
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