Water Ways

Kim Fredericks

07/01/2008

The freedom of walking out your back door and stepping into sand, onto a dock, or even into a boat is a privilege that comes with owning waterfront real estate. While this lifestyle traditionally comes at a higher price, in today’s pensive market, waterfront homes—whether newly constructed condos or historic estates—must deliver more than location if they want to attract serious buyers.

"It’s great if you have the beach, but you also have to have a beach club," says Sid Landolt, president of S&P Destination Properties, a company that specializes in the development, marketing, and sales of resort real estate. "Today’s buyers are not only looking for beach access, they want views, the setting, unique experiences, and the space to accommodate the multigenerational family."

In Hawaii, one of the world’s most popular places for waterfront real estate, Landolt says there are currently two markets. "The commoditized, primarily residential market is suffering, but the specialized market that delivers the resort experience and a prime location is performing better." Hawaii is also getting a boost from a flourishing international, specifically Japanese, economy. Most islands are showing growth, with the lava-rich Big Island flourishing with fresh developments such as Hokulia, and its neighbor a few miles up the coast, the steadily growing Kukio.

On Maui, the first day the Ritz-Carlton, Kapalua put its 107 new residential suites (priced from $895,000) on the market, they sold more than half—including the 2,250-square-foot penthouse, which sold for $6.4 million to a Japanese buyer—setting a sales record for the area. Part of the hotel’s $160 million renovation, which also includes a new spa, the suites range in size from 875 to 1,325 square feet.

The Ritz is also busy with the Club and Residences at Kapalua Bay. Set to open in April 2009, the 24-acre adjacent oceanfront development will have 84 private residences (priced from $3.9 million) encompassing 3,000 to 4,200 square feet as well as 62 furnished Ritz-Carlton Club homes (priced from $350,000 for a one-twelfth share), ranging in size from 1,912 to 2,257 square feet. Both club homes and residences deliver membership in the Kapalua Club, which includes a beach club, swimming pool, a spa, and golf benefits.

"Waterfront is one of the core elements to retaining real estate value," says Landolt. "But brand names such as Ritz-Carlton provide comfort to buyers because they know what to expect." Mention Baccarat, and visions of sparkling crystal may come to mind, but the luxury brand is also making a name for itself in resort development, partnering with real estate investment firm Starwood Capital Group to launch Baccarat Wailea on Maui. Infused with the Baccarat aesthetic, the resort will feature 193 condominiums, some furnished, ranging in size from 1,288 to 4,070 square feet and priced from $1.8 million to $10.2 million. Designed by HKS Hill Glazier Studio with interiors by Yabu Pushelberg, the project’s East-West style will put the focus squarely on the water—framing the ocean from the entrance, lobby, restaurants, and residences.

Baccarat’s second hotel and residences will be located on the Caribbean island of Anguilla, within the Temenos Anguilla Resort and Residences (The Robb Report Collection, January 2008). The 114-room hotel will manage 50 oceanfront units (1,100 to 2,400 square feet), while Temenos will provide 38 spa villas (3,400 square feet), 10 villas (3,000 to 3,400 square feet), and 18 estate homes (4,000 to 4,500 square feet). All residences on the resort are priced from $1.4 million to $14 million. Within the 286 acres are a Greg Norman–designed golf course, Anguilla’s first and only course.In Miami, big names and architectural designs are helping waterfront homes retain their value. "Our market is challenging because of the amount of homes that have become available," says Carlos Justo, founder of SOL Sotheby’s International Realty, based in Miami and Fort Lauderdale. He says that bad press has also had a major impact on the market. "Buyers are coming to Miami from all over the world thinking they will get a good deal, but ultimately, they will buy what they like, and they will pay to get it." In addition to purchasing architectural cachet, buyers want to be on the ocean and in the most exclusive communities.

The St. Regis chose the tony enclave of Bal Harbour to launch its new project, a trio of glass towers designed by Sieger Suarez with interiors by Yabu Pushelberg. "Bal Harbour is luxurious, and we are taking it to another level," says Serge Rivera, president of Starwood Vacation Ownership. Set on nine acres, the development will hold 183 hotel rooms, 36 condo-hotel suites ranging in size from 1,300 to 1,475 square feet ($1.8 million to $2.1 million), 24 St. Regis Residence Club units, and 268 private residences ($1.8 million to $6.2 million) from 1,777 to 3,884 square feet.

In addition to a variety of restaurants, a fitness center, Remède spa, and a brigade of butlers, residents will have access to 1,000 feet of beach equipped with private cabanas. When shopping calls, every notable designer from Chanel to Yves Saint Laurent is just across the street at the Bal Harbour shops. "It’s like saying you live on Fifth Avenue looking at the Park," says Rivera.

Other Miami developments that are banking on their location include CIMA, a new 52-story, 507-unit condo tower designed by Luis Revuelta set on the banks of the Miami River—a 5.5-mile waterway that runs through downtown Miami. Ranging in size from 930 to 1,803 square feet and priced from $330,000 to $900,000, the residences will be close to shopping, dining, and the arts.

CIMA residents will have their own club, a 53,000-square-foot space that encompasses a fitness center, wellness pavilion with reflecting pools and cabanas, his-and-hers spas, a game room, dining options, two swimming pools, and a meditation garden. Partnerships with Miami’s Carnival Center for the Performing Arts and the Club at Doral give residents VIP access to concerts and golf.

Sandwiched between South Beach and Miami on Watson Island, Island Gardens will feature a Shangri-La hotel and a collection of 100 hotel-managed private residence club units designed and furnished by Italian architect Piero Lissoni. Sold in one-eighth shares, the residences ($215,000 to $765,000) will range in size from 850 to 3,700 square feet.

The development will include various perks such as a CHI spa, retail, waterfront dining, and a fish market fashioned after Venetian fish stalls. The megayacht crowd will be attracted to Island Gardens’ 50-slip harbor, which can accommodate boats longer than 300 feet. Residence club members will also be able to enjoy the yachting lifestyle without the hassle of boat ownership, receiving two to seven days aboard a 60- to 80-foot boat equipped with a captain and full crew. "They can go out for a day or take a three-day trip to the Bahamas," says Mehmet Bayraktar, chairman and CEO of Flagstone Property Group, the resort’s developer. He believes that hassle-free fractional ownership is a good alternative for buyers looking in Miami. "It’s also easier for us to find construction workers and materials now that the boom is over," he says.Along Mexico’s Riviera Maya, the development boom is just getting started. An area that used to cater to tourists with budget package deals is now seeing a surge of high-end projects from big names such as Mandarin Oriental, Capella, Viceroy, and Rosewood. "The Mexican government has been conscious about creating these new destinations," says Alan Becker, of Becker Arquitectos, the developer of Nizuc. Recent laws have put restrictions on development, forcing them to pay more attention to environmental issues, he says. As a result, new properties are lower density and higher end.

While the Riviera Maya benefits from its proximity to the world’s second-largest reef and Mayan ruins such as Chichen Itza (one of the new Seven Wonders of the World), Nizuc has its own history. The former retreat where Mexico’s presidents entertained heads of state sits on a 28-acre sliver of land bordered by a 1.4-mile beach. Nizuc will offer three 11,000-square-foot beachfront villas ($10 million to $13 million), 160 apartment-style residences ranging in size from 1,200 to 2,500 square feet ($1.3 million to $3.5 million), and 16 1,800-square-foot club suites, part of the 45-room hotel. All units face the beach and are equipped with plunge or infinity-edge pools as well as access to a spa by ESPA, three restaurants, and a marina where residents can hop a water taxi to golf.

There’s also plenty of room to wander the boardwalks running through a series of mangrove preserves. "Every development should respond to its surroundings and integrate with nature," says Becker. Nizuc’s location, although secluded, is just five miles from Cancun’s airport, another aspect that has attracted international buyers to the area. "Buyers become more sophisticated when there is an economic crisis," says Becker. "They investigate, they weigh their options, but in the end if they want the product, they take it."

S&P Destination Properties, 808.566.8091, www.sprealestate.com
Hokulia, 324.6500, www.hokulia.com
Kukio, 808.325.4040, www.kukio.com
The Ritz-Carlton, Kapalua, 866.665.9184, www.livingkapalua.com
The Ritz-Carlton Club and Residences, Kapalua Bay, 877.205.5564, www.kapaluabay.com
Baccarat Wailea Resort and Residences, 866.296.6240, www.baccaratwailea.com
Baccarat Anguilla, 800.567.1845, www.baccaratanguilla.com
Temenos Anguilla, 888.759.6802, www.temenosanguilla.com
SOL Sotheby’s International Realty, 305.573.4700, www.solsir.com
St. Regis Bal Harbour, 305.993.6000, www.stregisbalharbour.com
CIMA, 305.285.1418, www.cimabyneo.com
Island Gardens, 305.531.3747, www.islandgardens.com
Nizuc, 888.696.4982, www.nizuc.com