Turnberry Driving Fledgling Hotel-Condo Market

July 15, 2005

MIAMI, Florida — Turnberry Associates is strengthening its foothold in the nascent condominium-hotel industry in bold strokes. The firm, which calls itself the ''largest high-rise developer on the East Coast,'' finished building a 36-story tower at the renowned Fontainebleau Resort (Miami Beach, Fla.). Construction has begun on an 18-story sister tower, called Fontainebleau III Ocean Club.

Both towers will stand on the property of the Fontainebleau Resort, a luxurious landmark hotel that opened in 1954 as a Hilton.

Completed in March, Fontainebleau II's 462 fully furnished suites, were sold six months before construction was completed, according to the company. The interior designer, Winovich Associates Inc., based the design of the suites on two South Florida styles: an upscale Palm Beach theme (bright, tropical colors) and a more relaxed South Beach motif (neutral light tones). Turnberry reported sales in excess of $200 million for Fontainebleau II.

Fontainebleau III Ocean Club is slated to be complete by the summer of 2006. It will house 311 residences valued between $450,000 to $1.7 million. The furnished junior, one- and two-bedroom suites will range in size from 500 to 1,000 square feet, plus terraces. At press time, 80% of the space in the tower had been sold.

The space in both towers is sold as condo space. Buyers have the option of putting rooms into the hotel's rental system.

Attuned to what it believes is strong demand in the condo-hotel arena, Turnberry has forged partnerships to build similar properties in Las Vegas and in the Bahamas, with more projects expected to be announced in the future.

In cooperation with MGM Grand, the company is well into work on the Residences at MGM Grand. Projected to consist of three 40-story condo towers, Turnberry expects that the first tower will be ready for service by the middle of next year. Buyers can choose from studio, one-bedroom and two-bedroom combination suites. Prices range from $450,000 to more than $2 million.

Residents and guests at the Residences will have plenty to do. The property will contain a 171,000-square-foot casino, five swimming pools and private cabanas, a spa with 30 treatment rooms, a handful of signature and casual restaurants, shopping outlets, and entertainment, including Cirque du Soleil's newest show, KÀ.

Meanwhile, in the Bahamas, Turnberry is jointly developing the 505-unit Residences at Atlantis, with Kerzner International. Pre-sales are underway on the $200 million, five-star property, which will be built on the grounds of the Kerzner-operated Atlantis Resort in Paradise Island. Also on deck for Turnberry in Sin City is a shopping center, called Town Square Las Vegas. The project will include an open-air mall slated to house 150 retails shops, a luxury boutique hotel with 229 rooms and a children's entertainment area.

Turnberry gained traction in the Las Vegas's high-rise condominium market in 1999, having erected Turnberry Place. The company holds 10 retail properties and seven hotels around the country, according to its website.


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