Welcome to San Diego Blog | July 10, 2010
Hard Rock San Diego Condo Opportunities
I had a client contact me today about selling his condo at the San Diego Hard Rock Condo-Hotel. Let’s just say I feel bad for any buyer that bought one of the Hard Rock condo rooms when the developer released them for sale. This particular person bought a 425 square foot one bedroom Hard Rock Condo Suite for $539,000. He currently receives $1800 in the low season to a max of $2400 in the high season for income produced by the property.
Unfortunately, something that promised to be such a good investment did not pan out as had been advertised by the developer. With a cost of $539,00o and a current anual estimated return at $24,000, the annual return on investment is only 4.5%. Worse yet, over the past 12 months only six Hard Rock Condo hotels have sold and they sold for less than half of what they once sold for (see below).
- #924 | 337 sq/ft studio | $160,000
- #928 | 340 sq/ft studio | $173,900
- #525 | 331 sq/ft studio | $185,000
- #529 | 337 sq/ft studio | $220,000
- #459 | 438 sq/ft 1 bedroom | $240,000
- #633 | 372 sq/ft studio | $238,000
San Diego Hard Rock Hotel Condos, It’s Time to Buy!
We’ll, I hate to be the guy to say it, but we’ve all heard that old saying, “one man’s loss is another’s gain.” That is exactly what we have going on here. The integrity of the brand the Hard Rock Hotel has built is not going anywhere. While condo sales and hotel occupancy are much lower than they once were, this presents a good opportunity for buyers.
With prices now in the high $100’s and low to mid $200’s, you can have a room in one of the hippest buildings in all of San Diego. When your not using it, you let the hotel rent it back and make back some of your investment. I like thinking of it as a really good rewards program at a place like the Hilton, The Ivy, or maybe the Marriott. But, the San Diego Hard Rock Hotel is so much cooler! Beautiful people, great restaurants, hopping bars, the poolside bar at Float. The Hard Rock certainly has it all going on.
Hard Rock Condos that are listed for sale now are as low as $175,000 and still offer up an annual return in the real of $1500-$1800 month. Now those numbers are staring to make a little more sense for a luxury ticket item. Compare a Hard Rock to a Bentley…you buy it for the exclusivity and pleasure, not for the return on investment. The nice part about buying a Condo at the Hardrock now is that you do have a good opportunity to make a descent return on your investment and still have an Exclusive Room in your own Condo-Hotel.
For questions about buying or selling a condo at the San Diego Hardrock Hotel, contact us and we will get you started in the right direction.