Turquoise Place renting 90 units
Developer says having portion off market makes 45 remaining condos easier to sell Sunday, May 10, 2009 By KATHY JUMPER Real Estate Editor
The owners of 90 units at the 24-story Turquoise Place in Orange Beach have furnished and are now renting the brand-new units, according to Rich Richardson of Spectrum Capital, based in Jackson, Miss.
Spectrum paid about $45 million for 90 of the 181 Gulf-front units, according to court records.
Spectrum is the real estate arm of Yates Cos., the contractor that built Turquoise Place on Ala. 182 in partnership with developer Larry Wireman of Orange Beach, Richardson said.
About 46 units have been sold and the owners have moved in, Wireman said. The 90 are in rentals, and the remaining 45 units start at $1.2 million, according to Wireman, who also developed Caribe Resort in Orange Beach.
In 2005, the units presold for an average $1.5 million, with the 6,000-square-foot penthouses averaging $5 million.
Offering the 90 units for rent "is a good thing," Wireman said last week. "They are off the sales market. It makes the rest of the units a lot better. We're not sitting there with 100 units to sell."
"The condo market is changing, and we have to adjust with the times," Richardson said. "You are definitely not going to find ones to rent like this that are brand-new with Sub-Zero refrigerators, high-end appliances and hot tubs. The smallest unit is a three bedroom with 2,300 square feet and private balconies."
"The market is going to be back. This is a way for people to buy some time and go ahead and furnish it for people to enjoy and use," said Chuck Norwood of REMAX of Gulf Shores. "It makes good sense. The rentals will offset some of the expenses."
However, Norwood added, "It doesn't make sense to buy a unit there as a rental."
The units will be operated by Spectrum's resort management division, Spectrum Vacations, which has an on-site rental management team.
The rental prices are competitive for the area rental market, with a three-bedroom, 3cm HALF-bath unit leasing for $290 per night, according to Richardson.
The lushly landscaped tower's amenities include an indoor pool, outdoor pool, a lazy river on the fourth floor, steam room, sauna, 3,000-square-foot gym and high-speed glass-and-tile elevators. Views from the tower stretch from Pensacola Beach to The Beach Club on Fort Morgan.
/cut/1/cPress-Register file photoThe first Turquoise Place tower is shown in June 2008. The owners of 90 of the high-profile condo project's units have decided to offer them as rentals. The Orange Beach development has sold about 46 units; the 45 remaining units start at $1.2 million.