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PROPERPROPERTTY HIGHLIGHTSY HIGHLIGHTS
Principal | Senior [email protected] #BK-0160420
JOHN WJOHN W. TROS. TROSTT, C, CCIMCIM 2.23+/- Acres Beashside Redevelopment Site
Class A building on site with over 40,000 SF with current positive cash flow
Across from the new oceanfront 501 room Daytona Beach Convention Hotel plus 128 Condominiums, under
construction
High visibility in the center of Beachside Business District
Zoning is BR-2 (Business Retail-2), Estimate 500,000 SF Potential
Located one block to the beach
Walking distance to 109,600+ SF Ocean Walk Shoppes, Ocean Center, Sapporo Japanese Steak House, and Oyster
Pub
PRESENTED BPRESENTED BYY::
The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for itscorrectness.
All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
FOR SALE | 501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL 32118
BEACHSIDE HIGH DENSITY REDEVELOPMENT OPPORTUNITY
WITH CASH FLOW POSITIVE CLASS A OFFICE BUILDING
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
DISCLAIMER
All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of theproperty within and is not to be used for any other purpose. This information should not, under any circumstances, bephotocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or usedfor any purpose whatsoever other than to evaluate the possible purchase of the Property.
The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed inthis proposal, and no other person is authorized by the Owner to provide any information or to make anyrepresentations other than contained in this Offering Brochure. If the person receiving these materials does not chooseto pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.
Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy orcompleteness of the information contained herein, and nothing contained herein is or shall be relied upon as a promiseor representation as to the future representation of the Property. This Offering Brochure may include certain statementsand estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there canbe no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and allliability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, orany other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled torely solely on those representations and warranties that may be made to it in any final, fully executed and delivered RealEstate Purchase Agreement between it and Owner.
The information contained herein is subject to change without notice and the recipient of these materials shall not lookto Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates,for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conducttheir own comprehensive review and analysis of the Property.
This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expresslyreserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property andexpressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any timewith or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OfferingBrochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed RealEstate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, aprospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and theSVN Advisor from any liability with respect thereto.
To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchasershould not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate PurchaseAgreement shall bind the property and each prospective purchaser proceeds at its own risk.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
TABLE OF CONTENTS
All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
1. 4PROPERTY INFORMATIONExecutive Summary 5
2. 6LOCATION INFORMATIONLocation Maps 7
Location Overview 8
Retailer Map 11
Map of Daytona Beach's Explosive Growth 12
Submarket Overview 13
3. 17DEMOGRAPHICSDemographics Map 18
4. 19ADDITIONAL INFORMATIONNews Articles 20
Additional Photos 27
Floor Plans 28
Floor Plans 29
Floor Plans 30
5. 31ADVISOR BIOAdvisor Bio 32
1 PROPERTY INFORMATION
All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
SSALE OALE OVERVERVIEWVIEW PROPERPROPERTTY DESCRIPTIONY DESCRIPTION
Unique 2.23+/- Acre Beachside Redevelopment Site.Class A building on site with over 40,000 SF with current positive cash flow.Estimate 500,000 SF Redevelopment Potential.Across from the new oceanfront 501 room Daytona Beach Convention Hotelplus 128 Condominiums, under construction.High visibility in the center of Beachside Business District.Walking distance to 109,600+ SF Ocean Walk Shoppes, Ocean Center,Sapporo Japanese Steak House, and Oyster Pub.Located one block to the beach in an area of significant redevelopment.Approximately 7 miles to Interstate 95 and 1 mile to International SpeedwayBoulevard.
LLOCOCAATION OTION OVERVERVIEWVIEW
Located at the northwest corner of Grandview Avenue and OakridgeBoulevard one block west of Atlantic Avenue.Just one block walk to the World's Most Famous Daytona Beach and beachaccess ramp.Located in NW quadrant of Atlantic Avenue and Oakridge Boulevard.Zoning is BR-2 (Business Retail-2).Non-Residential Development FAR 3.0Residential Density 40 units per acre.
SALE PRICE: $6,988,000
LOT SIZE: 2.23+/- Acres
BUILDING SIZE: 500,000 Buildable SF
YEAR BUILT: 1968
PARCEL NO: 5305-01-36-0050
ZONING: BR-2 ‘BusinessRetail-2'
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 1 | PROPERTY INFORMATION
Executive Summary
5All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
2 LOCATION INFORMATION
All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
7All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
Location Maps
Location Overview LOCATED JUST MINUTES TO:
$192,000,000 Daytona Beach Convention Hotel & Condominiums 501 hotel rooms & 128 condo units. 1.1 Million
SF on 4.5 acres, plus 517 space parking garage. Across Atlantic Avenue from the Redevelopment Site.
Proposed $40,000,000 200 room Hard Rock Hotel at 900 N. Atlantic Avenue, approximately 4 blocks north of the
Redevelopment Site
Daytona International Speedway and International Speedway Corporation 190,000 SF Headquarters
8All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
$46,000,000 Tanger Factory Outlet Center - 350,000 SF built on 39 acres projected to generate 900 full and part-
time jobs. Opened 2016.
$800,000,000 One Daytona mixed-use project, estimated 7,200 new jobs. Projected open November 2017. Bass
Pro Shops and Cobb Daytona Luxury Theatres now open.
LPGA Golf Course & Jimmy Buffett's Latitude Margaritaville proposed 6,900 new homes
9All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
Buc-ee’s planned 120-pump, 50,000 SF convenience store on LPGA Boulevard
LandShark Bar & Grill and Cocina 214 restaurants planned for beachside
Embry-Riddle Aeronautical University and Embry Riddle $12,000,000 Research and Technology Park
944 Bed Halifax Health Medical Center
Daytona International Auto Mall 18 Auto Dealerships including Ford, Dodge, BMW, Maserati, Infiniti & Mini
Cooper
Trader Joe’s $80,000,000 - 800,000 SF distribution warehouse 450 new jobs being created
Daytona Beach International Airport
Daytona State College - more than 33,000 Students annually and 1,797 employees
Bethune-Cookman University - Faculty and Student Body of more than 3,500
International Speedway Boulevard Commercial Corridor and Interstate 95 $246,300,000 new Interchange - under
construction
10All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
11All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
Retailer Map
12All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
Map Of Daytona Beach's Explosive Growth
Submarket Overview | Daytona Beach, FL
Home of the World’s Most Famous Beach. Located just a short distance from the Redevelopment Site was once
the home to presidents and wealthy entrepreneurs, Downtown Daytona Beach is the core of this historic city.
Downtown's main promenade Beach Street is lined with over 60 shops and eateries. Every season fans fill up the
stands to see Daytona Tortugas play in the historic Jackie Robinson Stadium on the waterfront. Beach Street has
museums, exhibits, outdoor festivals, water activities, nightclubs, cafes and Florida's oldest Saturday Farmer's
Market.
Downtown Daytona Beach is the only neighborhood in Daytona Beach where you can see a Broadway play, stop
by the Halifax Historical Museum, enjoy the Daytona Beach International Festival, catch a baseball game,
photograph the manatees, launch your boat, shop and dine out with friends all within walking distance.
Daytona International Speedway has completed a $400 million renovation. The home to Daytona 500 and several
other NASCAR events including the Nextel Cup and Pepsi 400. Its 480 acre complex makes it the largest venue
for motor sports in the world. It’s also one of the busiest with 10 major racings weekends a year, not to mention
many civic functions, bike and car shows.
A 200 room Hard Rock Hotel and Café is planned for the oceanfront opening in 2018. Projected to cost over $40
million.
Protogroup Inc. has under construction a $192 million 501 room hotel and 128 condominiums near the Ocean
Center.
The One Daytona $800 million mixed-use project of shops, restaurants, hotels, and apartments across the street
from Daytona International Speedway that promises to lure big-name businesses and create more than 7,200
new jobs. The first phase of the project will include 300,000 SF of retail, dining, and entertainment including Bass
Pro Shops, Cobb Theatres, two hotels, and 300 apartment units.
Tanger Factory Outlet Center has built a 350,000 SF outlet center providing more than 900 full and part-time jobs.
National grocery store chain Trader Joe’s has built an 800,000 SF distribution center providing more than 450
jobs to the area.
Minto Communities purchased 3,300 acres at LPGA Boulevard for 6,900 plus proposed homes at Jimmy Buffett’s
Latitude Margaritaville.
The Halifax River Yacht Club has over 600 members. The ‘Grand Old Lady’ that had served so well for over a
century was demolished in 2005 and the over $2,000,000 new 20,000 plus square foot 2 story clubhouse was
constructed to serve the larger membership.
The Daytona International Auto Mall 18 Auto Dealerships including Ford, Dodge, BMW, Maserati, Infiniti, Mini
Cooper, and more.
Proposed 140,000 sf Sam’s Club within the 186+/- acre in Tomoka Town Center.
$246.3 million for a new interchange at Interstate 95 and Interstate 4, under construction.
Proposed Buc-ee’s 50,000 SF store with 120 gas pumps on the north side of LPGA Blvd just east of I-95.
13All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
Submarket Overview | Daytona Beach, FL
The $13 million Cici and Hyatt Brown Art Museum will be the new 26,000 SF home for the Brown’s extensive
collection of more than 2,700 Florida oil and watercolor paintings.
The Halifax River Yacht Club has over 600 members. The ‘Grand Old Lady’ that had served so well for over a
century was demolished in 2005 and the over $2,000,000 new 20,000 plus square foot 2 story clubhouse was
constructed to serve the larger membership.
The Halifax Harbor Marina is a 550 slip, wet slip marina located in Daytona Beach, Florida. The marina is owned
by the City of Daytona Beach. HH provides year round docking facilities for boaters seeking a permanent slip.
Halifax Harbor Marina is considered one of America’s finest marina facilities. It has been honored as Marina of
the Year by Marina Dock Age, a marina business publication.
The $20 million Daytona State College - News Journal Center is situated on the banks of the Halifax River in
historic downtown Daytona Beach. The News-Journal Center is the perfect venue for medium-scale musical and
theatrical performances, as well as conferences, graduations and other mid-sized events. With its striking façade
and 40 foot windows overlooking the Halifax River, the News Journal Center serves both as a riverfront landmark
and an economic engine for downtown. The three-story, 98,000 SF building has a visual arts gallery, an 860 seat
proscenium theater with orchestra pit, and a 260 seat studio theater. Daytona State College is committed to
providing our community high quality entertainment and educational experiences in this unique downtown venue.
The entire theater is equipped with state-of-the-art theatrical, communication and data technology. The main DSC
campus serves more than 33,000 students annually and employs 1,797 people.
The ever expanding Bethune-Cookman University with a faculty and student body of more than 3,500. Founded
in 1904 as training school, then 1923 it became a co-ed high school.
Embry-Riddle Aeronautical University which boasts over 6,000 faculty and student body is located on the edge of
Daytona International Airport. Construction has begun on the $30 million Aerospace Research and Technology
Park adjacent to the airport on approximately 90 acres, in addition to the $28 million College of Arts and Sciences
building on campus and will house the largest university owned telescope in Florida
Halifax Health Medical Center of Daytona Beach a 944-bed hospital. All major medical and surgical services are
available. The 24-hour emergency department (ED) includes the area's only Level II Trauma Center and the only
Pediatric ED. It also features "fast-track" services for less critical injuries. The 4th largest employer in the area
with 3,957 employees.
Nearly 500,000 residents in the Daytona Beach metro area and 8 million visitors enjoy moderate weather, quality
educational choices, exceptional recreational activities, an active arts community and, of course, one of the most
beautiful, family-friendly beaches in Florida.
14All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
Submarket Overview | Daytona Beach, FL
Education, health care and government are the area’s largest employers. Among the numerous corporate
partners that call Daytona Beach home are:
NASCAR and International Speedway Corporation - ISCA
Ladies Professional Golf Association
LPGA International
Gambro-Renal Products (medical manufacturing)
Brown & Brown, Inc. (insurance) - BRO
Enrichment Industries (Vocational rehabilitation/manufacturing/assembly)
Teledyne Oil and Gas (Engineered solutions for sub/sea pipeline) - TDY
Advanced Ordnance (military Hardware)
X1R (auto lubricants)
Raydon (simulators)
Piedmont Plastics, Inc. (plastics manufacturing)
Embry-Riddle Aeronautical University (aviation-aerospace education)
Halifax Community Health Systems (hospitals/health care)
Florida Hospital Volusia-Flagler (hospitals/health care)
Consolidated-Tomoka Land Co. (land development) - CTO
Ocean Design (subsea Electrical and fiber-optic interconnect systems)
Stonewood Holdings (Restaurant management)
15All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
Employment Drivers
Part of a greater metropolitan area of East Central Florida, the City of Daytona Beach is situated at the
confluence of two major interstate highways that provide quick, easy access to the third largest consumer region
in the United States with a population of more than 17 million. International airports in Daytona Beach and
Orlando, railroad and nearby port facilities enhance Daytona Beach’s efforts to provide a cost-effective and
logistically important location to do business while providing an exceptional quality of life.
Daytona Beach is the regional commercial and cultural hub of the Deltona-Daytona Beach-Ormond Beach MSA
with a population of 545,451. Beautiful ocean beaches bring worldwide acclaim. More than eight million tourists a
year visit the area. Quality roads, miles of beautiful tree-lined streets through picturesque neighborhoods and
street beautification programs are national models and reflect the pride of residents. Based on the “2004 Survey
of Buying Power”, the Orlando/Daytona Beach/ Melbourne, Florida media market is ranked 20th in population
with 3.24 million people. It is also ranked 20th in Total Effective Buying Income (EBI) with $61.3 billion.
Daytona Beach is a regional marketplace, giving way to a diverse group of highly successful retail businesses,
manufacturing plants and associations. The city is an integral segment of the I-4 high-tech corridor with
specialized industries in aerospace, automotive and manufacturing. Companies and their employees profit from a
relatively low cost of living, steady economic growth and the benefits of well-planned development. Companies
profit from available labor; training; an area designated as an enterprise zone; and quality public services.
VOLUSIA COUNTY MAJOR EMPLOYERS
COMPANY INDUSTRY EMPLOYMENT
Volusia County Schools Education 8,080
Florida Hospital Volusia-Flagler Market Healthcare 4,248
Halifax Health Healthcare 3,957
Volusia County Government Government 3,280
Publix Grocery 2,486
State of Florida Education 2,361
U.S Governement Government 1,422
Embry-Riddle Aeronautical University Education 1,176
16All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 2 | LOCATION INFORMATION
3 DEMOGRAPHICS
All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
SECTION 3 | DEMOGRAPHICS
Demographics Map
18All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
POPULAPOPULATIONTION 3 MILES3 MILES 5 MILES5 MILES 10 MILES10 MILES
TOTAL POPULATION 46,839 10,041 211,842
MEDIAN AGE 48.1 39.4 40.3
MEDIAN AGE (MALE) 46.9 37.9 38.8
MEDIAN AGE (FEMALE) 49.5 40.4 42.1
HOUSEHOLDS & INCHOUSEHOLDS & INCOMEOME 3 MILES3 MILES 5 MILES5 MILES 10 MILES10 MILES
TOTAL HOUSEHOLDS 1,960 17,055 40,133
# OF PERSONS PER HH 1.8 2.3 2.4
AVERAGE HH INCOME $44,841 $48,140 $59,770
AVERAGE HOUSE VALUE $259,746 $175,775 $176,330
4 ADDITIONAL INFORMATION
All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
Sky High: Work begins on Daytona’s tallest, most
expensive hotel/condo project
By Clayton Park
Posted Mar 7, 2017 at 12:26 PM
Updated Mar 7, 2017 at 9:44 PM
Protogroup’s 2-tower convention hotel/condo complex to have
380-foot tower
DAYTONA BEACH — The rumble of earth-moving machines can be heard at the east end of
Oakridge Boulevard as excavation work is now underway for the most expensive — and tallest —
beachside development ever built in Daytona Beach.
Protogroup’s planned nearly $192 million Daytona Beach Convention Hotel & Condominiums
complex will consist of two towers, one rising 380 feet, the other rising 320 feet, confirmed Gregory
Portman, president of Atlanta-based PFVS Architecture, the project’s designer.
The north tower of the Protogroup project would also be significantly higher than the 342-foot-tall Peck
Plaza in Daytona Beach Shores, currently the greater Daytona area’s tallest building. Peck Plaza includes
the Top of Daytona restaurant.
In terms of cost, the Volusia County-run Ocean Center convention complex, by comparison cost $76
million to build in 1985 and was expanded in 2009 at a cost of an additional $82 million, putting its
total cost at $158 million.
The total cost of the Protogroup project, including the $6.9 million six-story 517-stall parking garage
nearing completion across the street from the future Daytona Beach Convention Hotel &
Condominiums, would bring the total cost of the project to nearly $199 million.
Graham Currie, project executive for Yates Construction, the general contractor for the Protogroup
hotel/condo complex, said excavation work on the 4½ acre site began Saturday. The pouring of the 100-
foot-deep concrete-and-rebar piles that will anchor
the foundation is expected to begin next week with vertical construction of the 27- story south tower,
where the majority of the 501-room hotel will be, expected to begin 5½ months from now.
“Everything’s on track,” said Currie of the timeline for completing the 27-story south tower by summer
2019. The 31-story north tower, which will include 42 hotel rooms and all 122 units of the condo
portion of the project is slated to be completed in 2020.
The 1.13 million-square-foot complex — roughly the same size as Volusia Mall — will be connected by
an enclosed, air-conditioned pedestrian walkway that will be built over the existing beach access road at
the east end of Oakridge Boulevard.
The complex will include an 11-story “mid-rise” connected to the south tower.
The complex will also feature street-level retail shops along State Road A1A, a 7,000- square-foot hotel
restaurant and 18,000 square feet of banquet and meeting space.
By comparison, the Hilton Daytona Beach Oceanfront Resort offers 60,000 square feet of meeting space.
The north tower will include 276 parking spaces, primarily for condo residents, said Portman.
Both towers will also have swimming pools on the east side, between the towers and the beach, he
added.
Protogroup is a Palm Coast-based family-run company whose owners are Alexey Lysich, vice
president, and his father and brother. All three are Russian citizens, but Lysich moved to Palm Coast
with his family six years ago and is a full-time resident here who plans to become a U.S. citizen.
Lysich’s father and brother also have homes in Palm Coast, but split their time between here and St.
Petersburg, Russia, where they maintain their primary residences.
Protogroup also owns a Day’s Inn hotel in Palm Coast. The family separately owns several businesses in
Russia, including supermarkets and hotels, but those businesses are not affiliated with the Palm Coast
company, Lysich said in an interview earlier this month.
Several area business and civic leaders commissioned a study by Fishkind & Associates in 2012 that
determined a need for a second convention hotel to be built next to the Ocean Center, in addition to the
744-room Hilton Daytona Beach Oceanfront Resort, across the street to the east.
Frank Bruno, the then-Volusia County chair, was one of those local leaders. Bruno, now a Realtor with
Keller Williams in Port Orange, said the Protogroup project “goes a long way toward fulfilling that
study,” adding, “I like the fact that it’s going to be
only a five-minute walk to the Ocean Center.”
That said, Bruno added: “I still maintain that the city and county should come together to build a parking
garage and convention hotel that could directly connect to the Ocean Center on the south side, either to
the east or west of the Peabody Auditorium. With conventions like the Shriners coming to town, there
will be a need (for more hotels).”
Hard Rock Hotel back with new Daytona plan
By Clayton Park
Follow
Posted Apr 6, 2017 at 9:20 AM
Updated Apr 6, 2017 at 11:16 AM
DAYTONA BEACH — A Hard Rock Hotel may be coming to the World’s Most Famous Beach after
all.
Eight months after Canadian developer Bayshore Capital suspended plans to develop an oceanfront
hotel/condominium complex that would have included a Hard Rock Hotel, another developer has
stepped up with plans to bring the iconic hotel brand to Daytona Beach.
The local developers who have been renovating the former Desert Inn with plans to reopen it as a
four-star Westin Hotel this summer went to the Volusia County Council Thursday seeking approval
to convert the oceanfront property instead to a Hard Rock Hotel.
Summit Hospitality Management Group is also seeking approval to extend their May 7 deadline with
the county for opening the new 200-room hotel at 900 N. Atlantic Ave. to Dec. 31.
Council members, who applauded the news of the Daytona Beach-based hotel development
company’s plans at their meeting Thursday, are expected to decide the matter at their April 20
meeting.
Volusia County Chair Ed Kelley is already on board, noting that the proposed switch still brings a high-
end luxury hotel to Daytona Beach’s beachside, an area that has been in great need of revitalization.
“You’d be getting a quality brand that would be a destination,” Kelley said, adding that it could give the
beachside area a much-needed lift. “This will be so exciting that it will drive tourism to a level we’ve
never seen before.”
Fellow council members quickly added their support.
“This is something that can get things (on the beachside) really going,” Councilman Pat Patterson added.
Summit managing member Abbas Abdulhussein said his company had a “letter of intent” with Hard
Rock and hoped to complete the deal soon, after the county signs off on the change. The goal, he said,
remained securing a high-quality hotel for the Daytona area. The Hard Rock, like the Westin, would
be just the second four-star hotel in the area.
“We invested and believed in Daytona when pretty much nobody else did,” Abdulhussein said. “We
saw a flight toward quality. ... People were willing to pay more for quality.”
Summit has been doing business in Daytona Beach since 2007 when it purchased what was then the Inn
on the Beach at 1615 S. Atlantic Ave. Since then it has acquired several other area hotels and recently
proposed a plan to renovate the historic Putnam Inn in DeLand.
Kelley and Abdulhussein met Wednesday with The News-Journal’s editorial board to discuss the
proposed changes along with a few others close to the project.
Abdulhussein said his family-run company decided to terminate its agreement with Westin after
Starwood Hotels & Resorts, which owns that hotel brand, was sold in September to Marriott
International. Marriott already owns several hotels in the Daytona Beach area, with plans to add more.
Abdulhussein said it was important to his company to align with a luxury hotel brand that would be
exclusive to the area, something that Starwood, which had no hotels here, could have provided, but not
Marriott.
Hard Rock, on the other hand, fits that bill as it has only 24 hotels worldwide, including three in
Florida: in Orlando, where the hotel chain is based, Tampa and Hollywood, he said.
“We found the one brand we’re comfortable with and that’s already approved by the County Council,”
Abdulhussein said. “We’re going to be a Hard Rock moving forward.”
Daytona Beach was in line to get a Hard Rock Hotel until last August when Bayshore Capital halted
efforts to develop its proposed oceanfront hotel/condo complex just south of SunSplash Park.
The reasons: slower-than-hoped for presales of the condo units as well as lengthy delays caused by
lawsuits from citizens groups opposed to the county’s agreements to make the sections of beach traffic-
free behind both Bayshore and Summit’s planned hotels.
Unlike Bayshore’s now-scrapped development, Summit’s project will remain strictly a hotel,
Abdulhussein said.
Abdulhussein added that Bayshore Capital Chairman and CEO Henry Wolfond in recent months
encouraged his company to pursue the Hard Rock Hotel brand.
Summit needs county approval to change the brand of its planned hotel and to extend the deadline for
opening to satisfy the council’s conditions for designating the beach behind the hotel traffic free, said
Jamie Seaman, the deputy attorney for the county who also met with The News-Journal’s editorial
board.
Abdulhussein said his company’s hotel would be operated by Hard Rock Cafe International Inc., with
his company remaining the owners of the property. The hotel under the new flag would also remain for
the most part the same as originally planned: with 200 rooms and two restaurants; nearly 20,000 square
feet of meeting space that will include a 6,300-square-foot banquet hall capable of hosting special
events and concerts; a 5,000-square-foot spa; and a kids’ activity area.
The rear of the hotel facing the beach will include a large deck stretching most of the length of the
building, as well as outdoor gazebos and cabana suites with direct pool access and private hot tubs. The
hotel will include underground parking that can accommodate up to 250 vehicles.
Abdulhussein said some of the hotel’s indoor public areas would need to be reconfigured to meet Hard
Rock’s requirements.
According to its website, Hark Rock Hotels typically include amenities such as a Rock Spa that offers a
full-service spa “with a musical twist;” kids and teen activities; a Rock Shop that includes clothing,
accessories and music-inspired souvenirs; the ability for guests to create personalized music playlists in
their rooms; and dining and nightlife activities. Some of the chain’s locations include a Hard Rock Hotel
club featuring live music.
In a letter to the county explaining Summit’s requested changes, Alex Ford, the developer’s attorney,
wrote, “My client feels Hard Rock is a better fit for this project and for this community. In fact, it was
originally my client’s desire to pursue an affiliation with Hard Rock, but that brand was not available at
the time. Hard Rock provides a level of exclusivity as was originally contemplated with Westin.”
Ford added that the proposed change of brand would be a “great win” for the county that “builds on the
legacy of Daytona Beach.”
The request to extend the deadline for completing the new hotel stems from Summit’s need to make
more extensive repairs to the aging former Desert Inn than initially anticipated as well as delays caused
by construction labor shortages and a power outage related to Hurricane Matthew.
Abdulhussein said the cost of construction, originally projected to be around $30 million, is now
expected to exceed $40 million.
Summit paid $6 million to acquire the 1950s-era Desert Inn in September 2013 and closed it later that
year to begin renovation work.
The Desert Inn, prior to Summit’s purchase, had become rundown with a reputation for crime
including the 2011 arrest of the then-owner’s son. That same year, travel website TripAdvisor ranked
the Desert Inn the third dirtiest hotel in the United States.
Abdulhussein said his company bought the Desert Inn because they “believed in Daytona” but saw “a
dearth of quality (hotels) on the beach.”
He said he believes people would be willing to pay a little extra to stay at a “quality” hotel. “We’ve got an
immense asset here ... a beautiful beach and an affordable place to go for families.”
After the original Hard Rock deal fell through, Dinneen said he sensed skepticism from some in the
community that the area could attract the kind of top-flight development that could be a catalyst for
improvement along Daytona Beach’s beleaguered beachside. This deal will change that perception,
Dinneen predicted, though he resisted calling it a game-changer.
“This will be a name-changer,” he said.
— Staff Writer Dustin Wyatt contributed to this report.
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501 N. GRANDVIEW AVENUE | DAYTONA BEACH, FL
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32All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.
John W. Trost, CCIMPrincipal | Senior AdvisorSVN | Alliance Commercial Real Estate Advisors
WORKING IN COMMERCIAL REAL ESTATE SINCE 1985IT IS ALL ABOUT YOU!
Your dreams, your needs, and your time. Working with you, on yourteam as agent and advocate from the beginning through to closing.
Seasoned professional with the education, designation, andexperience. Bachelor of Business Administration - Degree in Financefrom the University of Central Florida, the coveted CertifiedCommercial Investment Member (CCIM) designation, and thehands-on experience working with business professionals,developers, and investors.
A recognized leader with over 30 years experience in CommercialReal Estate Sales and Leasing. During that time working withdevelopers, financial institutions, and property owners to maximizetheir returns and leverage their time in land and investment propertysales from multifamily sites and subdivisions, to large and small retailshopping centers and office complexes, and church properties acrossFlorida. As well as extensive experience in office and retail leasing tonumerous national, regional, and local tenants.
Involved and a tremendous supporter of various youth and highschool sporting activities, including weightlifting, football, basketball,and golf. Served on the board of local Pop Warner Football, HighSchool Quarterback Club, and other non-profit organizations.
With tremendous growth and interest in the Volusia-Flagler market,you too can benefit from the strength of a commercial broker with theexpertise and integrity to maximize your dollars and your time.
Phone: 386.301.4581
Email: [email protected]
Memberships & Affiliations
International Council of Shopping CentersCCIM Institute
FL #BK-0160420
Fax: 386.206.1735
Cell: 386.295.5723
Address: 1275 West Granada Boulevard
Suite 5B
Ormond Beach, FL 32174