Jon Zolsky, your Daytona Beach, Florida connection

Oceans Jewels Club

935 South Atlantic Ave., Daytona Beach, FL 32118

150-room oceanfront condo-hotel was built in the 70s. Operates under Travelodge flag. Three years ago the management company was sold. New management company is not enjoying high occupancy, and in a dwindling Daytona economy is affecting the performance of the resort.

Recently one of the buildings underwent the upgrading.

There are 2 Pools(1 heated) plus a Kiddie Pool. Fitness Center, Oceanfront BBQ Grill and Picnic Tables. Complimentary wireless access is available in the lobby.

This hotel does not rent to area locals. No pets policy. No RV/Trailer/Semi parking available.

Presently 39 units for sale from $49,900 for a studio with no vew to $179,500 for a one-bdr unit. The mere number of units for sale is indicative of slow performance. Especially if you notice that there were only 2 units sold since January 1, 2008. One for $39,000 for a studio and a one bdr unit for $85,000.

On April 11 I posted a blog The Best FSBO in the Nation? It was about a real estate marketing idea by a person, who is not a Realtor. The author of the idea - Clementina Marie Giovannetti - offered her Ocala Mansion for ... the best pet lover story of 300 words or less plus a $200 entry fee. So, if you win, you owe a $1,250,000 (according to the owner) mansion on a very large lot with mature vegetation free and clear in this beautiful part of quaint Ocala.

The rules were quite elaborate, but the idea behind was pretty simple. Ms. Giovannetti would only do it if she gets the minimum number of entries (over 6,000) so that she gets her $1,250,000 that she claimed the mansion was worth. If she could not get the set number of entries, she would return the $200 entry fee minus $20 processing fee. There was an attorney involved, which was clear from the well thought rules.

I first saw it on our Central Florida TV, checked her website and was fascinated with the idea. Knowing how tough the market was, I was curious to watch how this would play out. I did not know whether all the heavy artillery that Clementina employed would help to melt the iceberg of the real estate slowdown.

After I posted a blog about the Ocala Mansion sale for the best pet lover story, I received the comment from... Clementina Marie Giovannetti herself. Obviously she was monitoring Google, and came to AR from there. As a very aggressive marketer, she went way beyond commenting on my blog, and one day spammed everyone leaving comments with the link to her site (http://www.ocalamansion.com/mansion.html) on every post she could find. That raised a lot of eyebrows of us. I sent her a comment regarding spamming, and she stopped (maybe not because of me, but it is always warm to feel that you are important, so here I am).

On March 23 (if memory does not fail me) I went to the kick off ceremony. We toured the property, and, when leaving, had a chat with Clementina (she is posing for me on this photo). She told me that she was viciously attacked by AR members in private e-mails sent to her. She threw some well known names at me. She said there were threats, cursing, and everything you can imagine. She even promised to send me them by e-mail, but did not, and I did not insist, as I believed she got some nasty stuff just from what I have seen myself on AR. Some of that stuff was simply hilarious. Claims that this was not her real name, that she is a man and other funny and not funny stuff.

I drove around this gorgeous very stable higher end area, made a few calls of for sale signs to get the idea of the prices, then sent an e-mail to a local broker asking for CMA. He did not do CMA, he did not like the whole thing about the owner, told me that the house was for sale since she had bought it, and that the last price was $995,000 and there were no takers.

I wanted to write a blog after visiting Ocala, but got busy and dragged, and dragged and dragged. Recently, from curiosity, I went to her blog, and read the announcement that due to lack of interest she cancelled the pet lover contest and that every cleared check is being refunded in dull. She did not take $20 fee, so it is clear that she had quite the expenses with this endeavor, and she spend some money on this idea.

So, now it is listed by Tom Heller. I communicated with Tom by e-mail, he thinks that the price is somehow supported. For me, if it did not go for $995,000, and the market is still on a downward trend, I would be very surprised to see any activity on this house,

Me wife and myself both thought that the value range was more in the $700s to $800s, but we could be wrong.

After all adversaries are happy that she failed, I want to look back at that whole Ocala Mansion thing.

• It is practically impossible to build the value, if it is not there. Though theoretically there are ways to hype the property, you can't really fool the market.
• It is very difficult to create a successful campaign which would go against the grain, like in this scenario.
• I don't think this wouldn't play in a hot market. A lot of hunters, a lot of hype, so what's the big deal about $200? We spend more on state lottery where the odds are soemtime 1 in 81 million, and here the odds were only one in just over 6,000.
• The apathy of a slow market puts us into the letargic state
• Sellers are not happy with agents (quite often) and try taking the control
• Agents get easily pissed off by these sellers

I guess there is some lesson in that story, At least for myself.

Harbour Beach Resort, 701 South Atlantic Ave, Daytona Beach, FL 32118

Built in 1975, the Resort had seen better days. Until 5 years ago we considered it a nicer property and liked to bring our customers there. Then the property started slowly deteriorating, management and maintenance going down the hill.

They did not have luck with the management company, three companies within the last 4 years made a big dent in trust between the onwers and the management. The Board failed to set the goals to preserve the and increase the rentals. It is just mind boggling what can people do to diminish the value of the property for the owners. No decent rentals, the whole front desk is missing...

Last year the resort started serious work on replacing concrete balconies. They also are replacing the windows and sliding doors to those heavy hurricane resistant one that are meeting the codes. Not only they are hurricane resistant, they are double pane and this adds a lot of sound and temperature insulation. The North side has been completed. The main part of the building will start now, and it wil take 12 to 18 months to complete. During this time the pool will not be in operation, according to staff.

There are 9 unit for sale as of June 7, 2008. Prices start from from $69,000 for a street view unit, $92,500 for an oceanfront studio and all the way to $159,900 for a tiny 483 sf one bedroom.

No sales since 2006. It is a bit paradoxical: no sales for 2 years, but prices are high. Go figure.

If interested in inexpensive alternative to oceanfront vacation property, call us 386-255-5355.

Jon Zolsky, your Daytona Beach connection

www.DaytonaCondoHotel.com

Daytona Inn

219 South Atlantic Ave, Daytona Beach, FL 32118

157-unit older condo-hotel right in the heart of Daytona Beachside on the corner of International Speedway Blvd and Atlantic Ave. Built in 1962, this 4 story condo-hotel has 157 rooms, half of them studios, and the other half are suites.

22 units on resale as of June 7, 2008. Prices range from $68,900 for a courtyard view studio and to 700 sf one-bedroom unit for $170,000.

Since January 2008 2 studios sold. One for $87,000, the other one for $105,000.

Looking for inexpensive alternative to vacation home or condo? Talk to condo-hotel gurus. 386-255-5355

Jon Zolsky, your Daytona Beach Connection

www.DaytonaCondoHotel.com

Daytona Beach Resort

2700 N Atlantic Ave, Daytona Beach, FL 32118.

Daytona Beach Resort is one of the largest condo-hotels in the area, if not the largest with its 322 studios and one-bedroom units.

Property that took the longest to convert. If I remember correctly, they started converting in 1999, and they still have a few dozen units unsold.

This is one of the nicest condo-hotels in appearance. Very nice and presentable.

35 units for sale on MLS as of June 8, 2008.

Prices start from $65K for a city view studio, $89,500 for a nice ocean view studio, and all the way up to $279,000 for a 640 sf direct oceanfront true one bedroom.

Since January 1 6 units were sold. This is the biggest number of sold units in the area, actually 33% of all condo-hotel units.

4 studios sold from $70K to $98K, and 2 one-bedroom units sold one for $150K, and another for $170K.

If you are interested in Condo-hotels, talk to the gurus.

Jon Zolsky, your Daytona Beach connection
www.DaytonaCondoHotel.com