August 14, 2008

Trend sees more U.S. condominium developers offering hotel-like amenities

New York

Zack Mishkin went all out to impress his girlfriend on the one-year anniversary of their romance.

He treated her to a professional massage in a poolside cabana at their Tempe, Ariz., apartment complex; champagne as they relaxed in a candle-rimmed hot tub; and a gourmet dinner he grilled by the pool. In her apartment, she found chocolate-covered strawberries, more candles, and rose petals forming a giant heart on her bed.

All this was engineered by the concierge staff at the complex, Grigio, one of a burgeoning number of places around the United States that aim to provide the convenience of home and the comforts of a hotel.

From New York to San Francisco, the amenities race is on among some high-end apartment and condominium buildings. Never mind a gym and a doorman — how about turndown service, pet sitting, gift wrapping, a wine cellar or a private library?

Yours — for a price — as some residential builders add resort-like amenities, and hotel-industry players create residential properties.

Even at a time when many Americans are struggling to hold onto their homes amid souring values, tightening credit and a stumbling economy, developers say that well-heeled, busy residents expect such luxuries. And layering them on can make a building stand out in a tough market.

People “are just looking for the place that gives them the best bang for their buck,” said Robert Goldstein, chief executive of Hospitality Consultants Inc.

The Boca Raton, Fla.-based hotel development firm increasingly gets calls from condo developers seeking advice on add-ons, he said.

For US$850 a month, Mishkin had plenty of Phoenix-area options.

“The amenities and personal services at Grigio were the main reason I chose to live here,” said the 23-year-old real estate agent.

Perks include room and laundry service, in-home massages, pet grooming and outdoor movie showings on a rooftop deck. Social events are free, but members pay for housekeeping, massages and other services.

Mishkin and girlfriend Katie Swilley, 22, a furniture and equipment co-ordinator for a developer, rented separate apartments there earlier this year.

“You can kind of always be on vacation,” she said.

Among the hotel-industry names expanding into luxury housing, meanwhile, is Ritz-Carlton, which opened its first urban residential offering in November in San Francisco.

It added eight floors to an 1890 stalwart that was once the tallest skyscraper west of the Mississippi River. Housekeeping is available twice daily, and concierges stand ready to tackle airport pickups, party catering, even stocking the fridge.

Some perks are aimed at fractional owners, who buy the use of a unit for a period of time each year. But Ritz-Carlton sees the amenities as an important draw for full-timers, too.

“What separates us from buying an apartment somewhere else in the city is they do have access to those services,” said Robert Phillips, senior vice-president of the Ritz-Carlton Club, the company’s residential arm. All but a few of the 52 full-time San Francisco condos, which start at more than US$1 million, have sold, he said.

Still, developers acknowledge that the lure of amenities has its limits.

“People are very conscious in today’s market as to what their expenses will be once they move in,” said Manhattan developer Harry Jeremias.

“At the same time, people also want to feel like they’re buying into luxury.”

Associated Press

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