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Condo Hotel For Sale in Panama City, Panama Panama Resale Condo Hotel - Strong Income Potential - 2007 Price Asking Price: $245,000 USD (Negotiable) The project has been sold out since September of last year, but Philip James Realty currently has four units available at the same price the developer was selling them for when the project sold out nearly one year ago. This offering will allow buyers to take advantage of both the significant appreciation which has occured in the local market over the last year as well as potential rental returns exceeding 20%. In fact, the project offers rental returns which, based on realistic predictions, exceed almost anything we have seen in Panama. Best, the investment is completely hassle free with all management and operations in the very capable hands of H.I. Development, which manage high quality hotel chains such as Hilton and Crowne Plaza world-wide.
Offering large rooms, full kitchenettes, and large balconies, Central Park Suites are the perfect alternative for business and leisure travelers who want the comfort of a home-away-from home atmosphere with all the amenities of a hotel. Located in the desirable El Dorado area, Central Park Suites boasts easy access to the expansion site of the Miraflores Locks, the new U.S. embassy, regional U.N. headquarters, and downtown Panama City - without the hassles of downtown Panama City traffic and congestion. The location also provides easy, traffic free access to Tocumen airport, is steps away from the National Metropolitan Park, and is right adjacent to the upscale shopping center known as Camino de Las Cruces. The project is ideally situated to meet the ever increasing demands for hotel space in Panama City and the canal zone area.
In fact, the last 12 months have already seen hotel occupancy in Panama pushed to the limit, even before full scale expansion of the Panama Canal has begun. Hotel occupancy, which has been pushing 80% and even 90% at just about all of Panama's high and mid-level hotels, will continue to increase for the foreseeable future as tourism numbers continue to rise, major infrastructure and expansion projects enter their peak phases, multinationals continue their expansion into Panama, the Colon free trade zone continues its growth, and retirees continue to explore Panama for a lower cost retirement option.
Multinationals which have already announced their moves to Panama include household names such as Caterpillar, Nabisco, Proctor and Gamble, and Dell. In addition, Royal Caribbean will begin full operations of a cruise ship embarcation point in Panama offering seven day cruises beginning December 2008. And then there is London & Regional Property's already approved bid to transform the 2,750 acre former Howard Air Force base near Panama City into a major commercial center and residential project - with significant focus on satisifying Panama's ever growing office, warehouse/distribution, logistics, inter-modal, media village, business park, manufacturing and call-centre real estate requirements.
The demand for hotel space in Panama is predicted to grow for years to come... so will the rates. In fact, most high end hotels, now operating above 80% occupany, have increased rates 2 or 3 times over the last year and a half. rates at some hotels have more than doubled over the last 18 months. As of today, a sampling of weekday call-in rates at some of Panama's finer hotels include the Bristol ($335/night + 10% tax), Crown Plaza ($250/night + 10%), Four Points Sheraton ($190/night + 10%), Country Inn El Dorado ($140/night + 10%), Radisson Decapolis ($235/night +10%), Marriot ($265/night + 10%), and the Intercontinental Miramar ($320/night + 10%). Looking at these nightly rates, it is quite conservative to predict an average nightly rate at Central Park Suites of $200/night when the project is completed 8 months from now, as it will offer style, amenities, and modernity far exceeding its only real competitor in the area - Country Inn El Dorado.
Indeed, Central Park Suites will offer full four star service and amenities including high end bar and lounge, full business center, concierge service, gym and fitness center, spa, pool, and restaurant, in addition to the full retail shopping and additional dining opportunities available in the adjacent Camino de las Cruces. The rooms themselves will be a full 624 square feet - the size of many one bedroom apartments, and will offer full kitchenettes and private balconies in each room, along with high end finishes and furnishings.
But perhaps the best part of this offering is the price. A regular condo hotel room in Trump Tower currently averages around $400,000. In Nikki Panama City, a 60 meter suite averages over $300,000. In Megapolis, a 45 meter unit without kitchenette runs for $200,000. Given current market prices, a nearly 60 meter suite at Central Park for $245,000 is more than reasonable. That is because you are receiving the market price of nearly one year ago when you buy one on these units.
But if $245,000 seems like a fair price, keep in mind, you are actually getting TWO adjoining suites when you purchase a single unit. Remember that each unit available for purchase at $245,000 consists of two "lock-out" type suites of 58 meters (624 square feet) each, with a complete kitchenette. That's two suites for $245,000. At current market prices, it is almost like getting two units for the price of one.
And your suites can be rented separately or together in the case of families or others who desire adjoining rooms. The lockout concept helps to maximize rental returns and ensure a highly profitable investment.
The rental income program for Central Park Suites is highly favorable to the buyer. Other condo hotels programs offer rental splits as low as 60/40 - with the rental operating keeping the 60% and the owner keeping 40%. And that is after the operator deducts for maintenance fees and operation expenses, which in and of themselves can equal over 20% of the total rental income in some cases. Central Park Suites on the other hand charges only a 4% adminstration fee, after which the owner keeps 70% of the net rental income, and the hotel operator keeps a maximum of 30%.
The result is cap rates that could push 20%. In addition, Panama's tourism laws and current investment incentives mean you will pay No Property Tax on your unit for 20 years, and your rental returns are also income Tax Free.
Our client is currenlty offering you the same price on these units which the developer was selling them for nearly one year ago when the project sold out. Your down payment per unit totals $108,500, with the remainder of the payment due upon project completion - expected by March 2009. Our investor is selling half of the eight units he has previously purchased, and will offer a discount for buyers interested in purchasing all four units.
We do expect this offering, which we were very happy to have come our way in the last few days, to go fast, so please contact us today if you are interested in this purchase opportunity. We look forward to hearing from you.
 | | About This Property | |
| Category: | | Condos | | Address: | | El Dorado
Panama City
Panama
Panama | | For Sale By: | | Agent | | Construction Year: | | 2008 | | Area: | | 116 m2 | | | Bedrooms: | | 2 | | Bathrooms: | | 2 | | Sleeps: | | 8 | | Stories: | | 18 | | Parking Spaces: | | 2 | |
| | Features - Amenities | |
| - Furnished
- Appliances
- Pool
- Gym/Spa
- Balcony
- Terrace
| | - Cable TV
- 24 Hour Hotel Service
- Bar/Lounge
- Business Center
- Concierge
- Maid Service
| | - Rental Program
- Restaurant
- Retail Shopping
- Spa
- Fitness Center
| | | Pictures (click to view a larger image) | |
| | Contact - More Information | |
| | Philip Schlesinger - Philip James Realty Company | | | | Phones: | | +507 399 0011 (Panama Office)
+507 6480 0881 (Panama Cell)
1 888 PHILIPJ (US Toll Free Voicemail Center)
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