New Info. Posted 1/31/12
THE TRANSITION HAS BEEN COMPLETED! CRESCENT HOTELS AND RESORTS NOW MANAGES SHELL ISLAND RESORT HOTEL.
To keep everyone in the loop let me copy you on part of an email that I sent to a client.
I assume you know that Shell Island Resort is all one bedroom units and all oceanfront. At this time I do not know of any financing available through normal banking channels due to the units being a condotel and nonconforming. Most purchases are cash only.
There are 6 units avaiable from $179,000 to 289,000. All have good views except first floor looks at a dune. They are as follows:
Unit Price
112 $179,000
507 249,000
513 265,000
516 276,500
818 278,500
812 289,000
We have just switched over to a new business model which will direct more profit to the HOA and a larger percentage of income to the owners. The average unit should bring in just under $20,000 net to the owner before paying HOA dues which will be around $6600.00. This will turn into a 5% ROI based on a purchase of $260,000.00. Although you will not get rich quick on this, I feel you would be hard pressed to find any oceanfront property with this return. In 2013 we expect income for an average unit to be $22,000.00 and the dues to drop to $5400.00 for a ROI of 6.4%. In 2014 we expect income to be $25,000.00 and the dues to drop to $4020.00 for a ROI of 8.0%. Dues at this time will level out. The ROI does not take into consideration any appreciation which should occur due to the well being of the Resort. Units have sold as high as $395,000.00 in the past. Also I do not know of any property, much less oceanfront that is projecting to decrease their dues by almost 40% within two years.
These incomes are averages which include the lower floors. Any unit 5th floor and above should do better. In addition, this past year we were able to acquire insurance to cover dues in the event there was a storm which paid off. This year we will have business interuption insurance which will cover dues, and income from rentals and banquet facilities. This will be paid by your own HOA. We have about One Million in the bank now and expect upwards of Three Million in the next couple of years. We are working on getting financing available at which time I believe that the prices will go up to $310,000.00.
I know this is a lot to swallow at one time. Hope I didn't give you too much information. Call with any questions. As a final note, with all that is now going great at Shell Island, it is the cheapest Oceanfront Condo at Wrightsville Beach! It is just a matter of time before the word gets out
Steve White
Shell Island is continuing to stay updated and be your favorite place to stay at Wrightsville Beach, NC. Check our info page for
GREAT THINGS TO COME!
Call us for more information. 1-800-508-6188 or Steve's cell phone 910-262-6189
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Check us often. We update when not fishing!
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