Oceans Jewel Club. A Daytona Beach Condo-Hotel

Oceans Jewel Club at 935 S. Atlantic Avenue was converted to condo-hotel in late 90s. This was the beginning of the condo-hotel era, units were nice, though small, but with stoves. Some with view, some direct oceanfront, and some with no view of the ocean.

Commercial space including Front Desk belonged to a management company, who were running rentals and were packing the property whenever tourist were coming to Daytona. Not a glitzy property and not a snobbish place, but simple and inexpensive.

The property flies Travelodge flag.

About 3 years ago, the management company changed hands. The new owner was not a particular hotelier, but a butcher from New Jersey, who was looking for a partial retirement.

Really, what can be easier than running a hotel operation?

The new owner could still have a chance of surviving if he kept the GM, an aggressive and effective guy, who was doing very well there, but the new owner may not understand it and let the manager go. Things were going downward since then. Service was not the best, actually, nothing was the best. Money was getting tighter, condo owners were more and more frustrated, I heard that management was slow to send owners the checks, so they started opting out of the rental program, which is not mandatory. Fewer units, less money, so the management started a vicious circle.

The new owner raised some money, but it was spent, and business did not improve. The general fallout in the economy also did not help. It was obvious that they were drowning, but when I came to them with a bailout offer from my client, they laughed at me. They wanted double the money.

Then I heard that the company's commercial space is in foreclosure, and, finally, when passing by yesterday, I saw a note on the door. It said that the Front Desk was closed. A maintenance guy was in the lobby telling peple that rentals were stopped, and he could not provide any more information. He gave me the number for the Association Manager, and I called her later.

The association's hands are tied. The commercial property still belongs to the same guy, the foreclosure is in the works, but until the property is foreclosed, chances that there will be rentals are slim to none. What an unpleasant surprise to the owners, who expect that the units are rented when they are not here, and help them to offset the expenses.

Not now, not in Oceans Jewel.

There are 25 units for sale in Oceans Jewels. Starting from $45K and all the way to $165 for direct oceanfront. And even though you can actually claim it as your primary residence, and homestead it, I would be hard pressed to suggest it as a viable investment.

Not now, not in Oceans Jewel.

Jon Zolsky, your Daytona, Florida condo-hotel guru
www.DaytonaCondoHotel.com