News
Saturday November 10, 2007
Ludington condo development offers 'fractional ownership'
by Eric Gaertner | Muskegon Chronicle
A waterfront condominium development in Ludington is bringing a new ownership option to West Michigan.
NorthShore Villas & Yacht Club is being billed as a high-end resort with "fractional ownership" offered, so owners aren't paying for their unit to sit empty. A groundbreaking event for the five-story condominium and marina development on the Pere Marquette Lake shoreline is set for spring.
More than 100 residential condos and marina slips are expected to be constructed on the site that covers nearly 6 acres near the S.S. Badger ferry dock. First occupancy is expected in spring 2009.
The private partnership group, consisting of businessmen from across Michigan, expect the fractional ownership to be a popular because it fits into people's busy lifestyles.
"The advantage of fractional ownership is you're only buying what you're going to use," said Brian Gardner, the sole Southeast Michigan partner in the development.
The partners describe fractional ownership as the way for a person to own a luxurious vacation home at a reduced cost while also enjoying many amenities that are not usually available at cottages. A fractional owner receives a deed to the unit.
By purchasing a one-sixth ownership, a person would have access to the unit for half of a premium summer month, half of a month at the beginning or end of the traditional summer vacation season and anytime, with reservation, in the off-season from November through March. Gardner said a 2,000-square-foot unit for a one-sixth owner would cost $125,000-$175,000.
Fractional ownership is a relatively new concept, having started about 10 years ago. Gardner said there are only about 300 fractional-ownership resorts in the country, and NorthShore is the first on the West Michigan shoreline.
The concept is similar to a timeshare, since fractional ownership and timeshares both focus on shared ownership of a unit. However, fractional ownership provides the owner with a deed to the property and usually more use of the unit.
NorthShore also is offering fractional ownership of power boats, sailboats and kayaks for its owners.
Among the amenities at NorthShore are more than 700 feet of waterfront, a private marina, indoor and outdoor whirlpools, two resort-style outdoor pools, in-room views of the lake from attached decks and an on-site concierge.
Maintenance staff will be available 24 hours a day for owners. The partners point out that owners of traditional cottages often spend parts of their getaway days fixing up their lodgings.
"We want our owners to enjoy their time by relaxing at NorthShore, not maintaining it," said Gordy Bruinsma, a partner from Byron Center who also is involved with a proposed $15 million residential development in Montague.
Wayne Visbeen of Grand Rapids-based Visbeen Associates is the architect for NorthShore and the proposed Montague development at the former Ravenswood Resort site on the White Lake shoreline.
Bruinsma said he expects NorthShore to draw strong interest from residents in Chicago, Grand Rapids, Milwaukee and the Detroit area.
Reservations for the first phase of the development are being taken. The sales center, 101 S. James, opened Aug. 23.
"If you're a boater, beach-lover, waterfront-living type of person, or an combination thereof, then NorthShore is the place you've been dreaming of," Gardner said. "We're setting course for a new destination along the Lake Michigan shoreline. This is the fully catered experience that takes care of all the details."
Fractional ownership:
* Allows people to buy a unit for a fraction of the cost they would normally spend.
* Gives owner access to the unit for a specific period of time each year, including weeks during the high season (June-August) and fringe season (April, May or September), along with reservation access in the offseason.
* It's been called a "timeshare with a deed," but there are other differences between fractional ownership and timeshares. The main difference is a timeshare is usually considered a vacation of a week or two, while a fractional ownership provides each owner weeks of access, similar to a second home. Fractionals also are larger units.
* Banks and mortgage firms consider fractionals to be appreciating assets and will often treat them like any other second-home purchase.
* Becoming popular with busy professionals looking to maximize their family time away from home, those interested in specific activities such as golf or skiing, and waterfront lovers who can't afford the whole ownership cost.
Monday October 1, 2007 - MiBiz
Living large on the lakeshore
By Rod Kackley | MiBiz
The effort to sell Lake Michigan’s first fractional ownership condominium and marina development began in August.
The sales office of NorthShore Villas & Yacht Club, with its 103 villa-style residential condominiums and 109 deep-water boat slips, is open in downtown Ludington.
A company that specializes in waterfront resort real estate, S&H Real Estate Advisors, will handle the reservations. Twenty units will be released in the first sales launch in March or April. A second launch at the end of next summer should include another 20 units. Reservations are being accepted.
The condos are priced at $300-$350 per square foot and range in size from 2,000 square feet to the 4,000-square-foot penthouse unit. Market conditions will determine how many villas will be offered for fractional ownership, but a variety of options will be available. Managing partner Brian Gardner told MiBiz that his firm is targeting affluent consumers, especially those who love boats, and those whose children have moved out of the state.
"This will be ideal for grandmothers and grandfathers whose children have left Michigan," he said. "They could buy two fractions next to each other and create a family destination, without cramping anyone’s lifestyle."
S&H research has also discovered a large number of people who have moved away from Michigan but return to the state during the summer.
"The second home is a destination for them, just like their home in Phoenix," he said. "There are people who hook up their boat in Denver and drive to Ludington the day their kids get out of school. They want to spend the summer on the lake."
Another target market is comprised of Chicago people who are accustomed to vacationing in Northern Michigan.
"Getting out of Chicago can be extremely difficult. And then after four hours of driving you hit another traffic jam north of Ludington when U.S. 31 turns into a two-lane highway."
Gardner also said the fractional ownership model fits into the lifestyle of those target markets.
"It enables the buyer to get the value they want, when they want it," he said. "The best fly-fishing east of the Mississippi River is in the Pere Marquette River. If they just want to come in to fly-fish two weeks in the spring, they don’t have to buy an entire condo for those two weeks. But they can still stay in a nice place."
The five-story luxury condominium and marina development, which will occupy nearly six acres of Pere Marquette Lake’s northern shoreline near downtown Ludington, will be the first condominium development on Lake Michigan to offer fractional ownership high-end residential living units with deep-water boat slips.
Ground will be broken for the NorthShore project in spring 2008, with first occupancy starting one year later. Lakeshore lifestyle architect Wayne Visbeen of Grand Rapids-based Visbeen Associates has created plans to transform what was an industrial section of waterfront into a luxurious resort-like setting.
A private group of investors is funding the project. Gardner said they couldn’t have picked a better location than Ludington.
"It has a deep-water marina that will always be open, unlike Saugatuck," he said. "The state (of Michigan) is going to stop dredging non-commercial harbors, but we know that ours is always going to be open. We also love this location because it is the first stop on your way up north, and after Ludington you are on a two-lane highway."
It wasn’t only the geography that swung Gardner’s group to Ludington. They were very impressed by the leaders of the city’s business community and city hall.
"We have never encountered a more energetic and helpful group," said Gardner. "Ludington has been unbelievably helpful in every respect. The mayor, city manager, zoning administrator and local marina manager have all helped us tremendously. Ludington is really an undiscovered gem."
COPYRIGHT 2007. MIBIZ. ALL RIGHTS RESERVED.
This article appeared in the Monday October 1, 2007 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who are employed in West and Southwest Michigan. For further information about MiBiz, visit www.mibiz.com.
August 23, 2007
NorthShore Villas and Yacht Club Opens Sales Center
NorthShore Villas and Yacht Club unveiled their new Sales Center with a Ribbon Cutting ceremony by the developers, members of the City of Ludington such as Mayor Henderson, City manager John Shay and other city representatives. The Sales Center is part model, part sales office for NorthShore and is located at 101 South James Street in downtown Ludintgon. NorthShore is scheduled to begin taking reservation agreements mid-September and break ground in the Spring of 2008 with occupancy one year later in 2009.
A two-day only Sales Event is planned for April 2008 and those with reservations will get first choice of residence location and whole or fractional ownership.
