Some luxury projects scoff at price cuts

Flickr photo by MShades.

"Hanging on through difficult economic times" means different things to different people. For many families, the phrase means curtailing any non-essential spending, and buckling down to find a way to pay the monthly mortgage or rent.

To some builders, "hanging on" denotes a way to simply break even, whether that may mean deeply discounting all remaining inventory to keep any losses at a minimum. To others, it may represent taking on a second job, in a totally different line of work, simply to feed and clothe loved ones.

To a few well-capitalized luxury properties and resorts, hanging on for developers and builders means simply waiting for qualified buyers to return to the market, maintaining the status quo, with no price reductions or significant financial incentives.

Take for example The Grand Del Mar. It lies in a coastal canyon on 380 acres in north San Diego and is the county's newest luxury resort property.

It features 249 guestrooms (a night in the Manchester presidential suite will cost you $3,500 a night) and eight villas offering 80 fractional ownership opportunities starting at $450,000 for a one-tenth ownership plus an annual fee of $10,500, which includes a membership to the Tom Fazio-designed golf course on the property. The units contain 4,543-5,089 square feet and are beautifully appointed and accessorized with anything you could possibly need.

But do not, despite the economic environment that has zapped home prices in Southern California, ask for a discount or make an offer less than the listing amount. According to the developer, sales thresholds will be reached, regardless of the time frame. The eight villas in Phase One have 80 possible ownership fractionals, but only two have sold in 2009. Four fractional shares sold in 2008. The villas opened in 2007, and spokespersons for the company say that about 40 percent of the units have been purchased.

Manchester Financial Group, the San Diego-based company that acquires, develops and manages high-profile properties throughout the U.S., is the primary developer of the Villas at The Grand Del Mar. The company employs approximately 3,000 people nationally and controls $2 billion in assets in 11 states.

The company's controversial purchase and redevelopment of the venerable Shore Lodge in McCall, Idaho, was widely criticized before reopening as the Whitetail Club & Resort. The massive Manchester influence includes a towering Hyatt Hotel on San Diego Bay along with national investments in technology, telecommunications, banking, broadcasting and medical device instrumentation. ...CONTINUED

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