Water Ways
July 1, 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.
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