In a city of celebrity, glitz, and glamour, an exceptional newcomer is creating quite a buzz. Dubbed simply “3550,” as in 3550 S. Ocean Blvd, this Palm Beach stunner is a 30-unit, gleaming glass masterpiece. SecondShelters.com recently caught up to premier Palm Beach real estate broker John Abdelsayed of Trends Realty. “This is the first new tower in Palm Beach in more than a decade. (The) 3550 has everything you expect from Palm Beach.”
Rudy Bush at the Dallas Morning News reports that Developer Leobardo Trevino, whose company, Ricchi Dallas Investments is currently renovating the old LTV Tower at 1600 Pacific, has purchased The Statler Hilton, once one of Dallas’ finest downtown hotels. Trevino apparently plans to gut much of the building while maintaining its historic facade and important elements like the lobby. Trevino also purchased the Dallas Central Library and plans to re-develop both buildings. Be sure to click on the developer’s plans.
“We believe this is going to be a great icon again. This building is going to do what it did in 1956,” Trevino said.
He said that the building does have challenges, but that he sees many more positives.
“I don’t see an obstacle that would be an impediment. We have the issue with the parking, but we are considering converting the basement and some of the unused space,” he said.
“People complain about 8-foot tall ceilings; we don’t see nothing wrong with them. We don’t see a big challenge. The biggest challenge is the size of the building,” he said.
Enter the skeptics: Ricchi Development Group is also redoing the 1600 Pacific / LTV Tower project on Elm into what I heard was going to be the area’s first condo-hotel. Everyone is happy the building sold, but a bit skeptical about Ricchi and whether he has the resources to see the project through. Is he spreading himself too thin? The LTV Tower has been gutted for months, with only some renderings and a tiny website to show for it: http://www.thegrandricchi.com/.
The concept behind condo-hotels is actually pretty cool: the developer sells the room, usually an oversized hotel room with a mini-kitchen that includes a dishwasher, fridge, and maybe mini-stove, to the owner/investor who can use it when he wants, but rent it out as a hotel when he’s not using it. The developer collects the money, builds the unit, then takes a management/maintenance fee off renting it. Investor gets a little return, too.
Of course, if it remains vacant, no cash flow for either of them.
It’s a lot like fractional ownership, which is a huge trend in vacation homes, except the hotel units tend to be smaller. The Mission hotel condos are priced at $189,000.