Jun. 21--Developer Bill Levy and his team have sealed a deal with The Ritz-Carlton Hotel Company to manage and operate the Entrada project on lower State Street. 

The 56 luxury condominium-style units will become the newest property offered by The Ritz-Carlton Club, which features "fractional ownership" vacation homes with the amenities and services found at five-star hotels. 

Teaming up with The Ritz-Carlton elevates Entrada to a premier, world-class property, said Mr. Levy, who spent more than 10 years getting the project underway. 

"This is truly a major step in letting people know what this project will be like," he said. "We couldn't have ended up with a better name that represents world-class properties." 

The Ritz-Carlton is 99 percent owned by Marriott International, which has one hotel in Buellton. 

In addition to managing and operating the project, Ritz-Carlton has also taken a partnership stake in Entrada, which is a mix of two and three story buildings with retail shops and restaurants at the street level. 

"Right now its a 50-50 split, but that will probably change," Mr. Levy said. "(The Ritz-Carlton) has taken a very active role in the project." 

Mr. Levy's company, William Levy Investments, had also been in talks with two other resort operators -- the Four Seasons and Singapore-based Amanresorts -- that have a strong interest in the timeshare market. 

"Ritz-Carlton has emerged as the leader in this industry," said Mr. Levy, explaining the decision to align with the Atlanta-based company. 

From this point on, the Entrada project has a new official name -- The Ritz-Carlton Club Santa Barbara. It joins four other Ritz-Carlton Club properties located in the wealthy enclaves of Aspen, Colo.; St. Thomas, U.S. Virgin Islands; Bachelor Gulch, Colo.; and Jupiter, Fla. 

The club concept, developed by Ritz-Carlton in 1999, offers buyers a one-twelfth interest in a second home for time periods longer than the traditional timeshare. 

Buyers become club "members" and are entitled to spend about four weeks in their unit. They can also spend a portion of this time at the other club properties. 

Unlike the typical timeshare, the fractional ownership market caters to those who are accustomed to the services offered at five-star hotels. 

The Ritz-Carlton Club offers a concierge staff that will shuttle members to and from the airport, unpack suitcases and even arrange personal items in the units so they feel like home. Amenities include a pool, spa services, and a club restaurant. 

Just how much can buyers expect to spend to become a Ritz-Carlton Club member? 

That's still being determined, said Mr. Levy. Focus groups are now being held in Los Angeles to help set the unit prices and the duration of stay. 

"We think they'll sell somewhere between $200,000 to $500,000 for a stay of 28 days a year," he said, which is similar to the price range and time of the club property in Aspen. Members would also be charged annual dues. 

At least one local real estate agent believes the project will sell easily. 

"I don't think they'll have any trouble selling them," said Steve Epstein with Coldwell Banker in Santa Barbara. "I think L.A. people and others in Southern California, especially, will be drawn to them." 

"If you could sell each of those units 12 times for $300,000, that would be some chunk of cash," he added. "Definitely not a bad business to be in." 

The success of other resort operators in the luxury timeshare market points to positive results in Santa Barbara, but there are no other projects in the area to compare it to, said Ed Galsterer of the Four Seasons Biltmore. 

Until Mr. Levy's project came along, there hadn't been anything else in the Santa Barbara area that offered this type of product, Mr. Galsterer said. 

"The Four Seasons has vacation ownership at several of its properties," he added, including one in north San Diego and another in Scottsdale. "They have been very successful, and the Four Seasons has been very pleased with them." 

Construction on The Ritz-Carlton Club Santa Barbara is expected to begin in early 2003. A sales office with a model unit near the project will open around the same time said Mr. Levy. 

-----To see more of the Santa Barbara News-Press, or to subscribe to the newspaper, go to http://www.newspress.com 

(c) 2002, Santa Barbara News-Press, Calif. Distributed by Knight Ridder/Tribune Business News. MAR, CD, FS,