Lag in Condotel Sales Doesn’t Affect ‘The Donald’

In recent months, the condotel or condo hotel ownership industry has seen a slight decline in sales. Most industry experts are not concerned and believe it is only part of a normal rise and fall in real estate trends and that the recent lag in sales parallels the overall decline in the housing market nationwide.

Yet apparently, if your name is Donald Trump and the condotels you are offering are well located and well-priced, you are bulletproofed against the effects of a sluggish real estate market.

The Trump Organization, together with Irongate, a Los Angeles investment and real estate company, have co-developed a multi-stage luxury resort project in North Baja, Mexico. Located only thirty minutes from downtown San Diego, when completed, The Trump Baja will include 525 luxury condotel suites. The three cliff side towers will overlook the Coronado Islands and the Pacific Ocean. The first 231 units are expected to be ready for occupancy by late 2008.

Interested buyers paid $5000 apiece to reserve the opportunity to select their specific unit on a first come-first serve basis. Typically, prices for Trump ownership hotel suites start around $700,000. ($799,000 USD for Trump International, Ft. Lauderdale, Florida and $815,000 USD for a suite at Trump Chicago). When The Trump Baja began their presales with fully furnished suites priced from the mid $200,000’s to a little over one million dollars, it was not surprising they were gobbled up quickly. One hundred and eighty-eight of the first tower’s units were sold by noon on the first day of presales, accounting for over $46 million. According to an AP report, presales hit $122 million within the first week.

Owners of the condotel units can hold their suite solely for their own use or participate in a rental program, with a management company handling all the details of guest services.