WORLD PROPERTY CHANNEL ®

Resort at Singer Island

(SINGER ISLAND, FL) -- Talk about fire-sale prices for luxury condominium resorts.

The 239-suite, two-year-old Resort at Singer Island in South Florida has been sold for $7.1 million or $29,707 per unit. 

Comparable new construction would be at least  $300,000 per unit or about $72 million, general contractors familiar with similar projects tell Real Estate Channel. 

The buyer was Urgo Hotels of Bethesda, MD.  The seller was WCI Communities Inc. (NYSE: WCI)  of  Bonita Springs, FL.

"We purchased this luxury resort, which opened in 2007, out of bankruptcy at an attractive price," says Urgo senior vice president Kevin M. Urgo,

"By rebranding and repositioning the property and installing our proprietary management systems, we believe we can make an immediate impact on the property."

He adds,  "The economy and the hotel industry remain mired in difficulty over the short term, but we believe the outlook for this resort offers great promise."

Singer Island, FL skyline

Urgo immediately rebranded  the property as Palm Beach Marriott Singer Island Beach Resort & Spa. 

The acquisition included four, three-bedroom residential condo apartments, 14 condo-hotel units, all of the hotel's facilities and amenities including the common areas, restaurants, lounges, conference and function rooms, spa, fitness center, recreational areas, and operating agreements.

"We have the financial power to acquire and/or joint-venture with others," says Urgo.  "And, we have expertise and the infrastructure in place to comfortably add more third-party management contracts.

"We have an active pipeline in the U.S., Canada and the Caribbean.  Florida is particularly attractive to us."

Urgo  says his company has a 25-year proven track record developing upscale hotels that exceed brand standards, and the acquisition, re-positioning, re-branding, and conversion of underperforming properties. 

The hotel is located on six acres of prime beachfront with 300-foot frontage on the Atlantic Ocean in Palm Beach County, FL.  The property is 15 minutes from Palm Beach International Airport and is near the heart of Palm Beach shopping, restaurants, and night life.

Property amenities include an 8,500-square-foot-spa with eight treatment suites and an 1170 square-foot, state-of-the-art fitness center.  A lagoon-style, outdoor, infinity swimming pool, highlighted by a two-story waterfall and slide, is surrounded by cabanas and a whirlpool.  

David Fry

Since emerging from Chapter 11 reorganization, WCI Communities, Inc. is "exceeding key goals of its Plan of Reorganization,"  WCI president and CEO David L. Fry said in an Oct. 13 prepared statement, the company's most recent announcement..

"Most significant is the fact we have paid down over $60 million, which is 20% of our senior secured term loan, in the past 40 days," Fry said.. "We are executing well on a plan that will generate significant cash flow and provide the company with flexibility to react to opportunities once the Florida real estate market recovers."

(Please see related Real Estate Channel article, WCI Gets $2B of Debt Wiped Off Books, Aug. 27, 2009)

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