New developments and ROFR

[GregT]

All,

I'm not going to distract the ROFR activity sticky because this may become a dialogue.

Someone noted in the thread a couple instances of Grand Chateau weeks passing ROFR at relatively low prices. I speculated that this was because the Trust was so deep in Grand Chateau (it is 51M of the 331M points).

I am now curious if we will see this same phenomenon when other new properties are built and deposited into the Trust. Examples would be the on-going Shadow Ridge Enclaves II development, and potentially the building 4 at Ko Olina if that ever gets built. It would be interesting to see the market pricing for both of these properties if the Trust ever becomes overweighted in these.

Just thought I would pose the question. I may track ROFR on these properties if/when the day comes. Are there any other major developments that are scheduled that I'm not thinking of, that might be similar?

Best,

Greg

 

[nygiants11991]

I am considering a 1 bedroom Ocean Front every other year at Muai Ocean Club and wonder what would be a good price?

Any suggestions would be greatly appreciated.

 

[GregT]

I am considering a 1 bedroom Ocean Front every other year at Muai Ocean Club and wonder what would be a good price?

Any suggestions would be greatly appreciated.

I think a 1BR OF in original towers is worth 4,175 Marriott points, so if you subscribe to the ROFR metric theory (as I do), then an annual would need to price around $9,600 to clear ROFR.

The EOY unit you are considering should clear at $4,800.

How does that compare with your expectations?

Good luck and I hope you can get it for less!

Best,

Greg

 

[Ron98GT]

All,

I'm not going to distract the ROFR activity sticky because this may become a dialogue.

Someone noted in the thread a couple instances of Grand Chateau weeks passing ROFR at relatively low prices. I speculated that this was because the Trust was so deep in Grand Chateau (it is 51M of the 331M points).

I am now curious if we will see this same phenomenon when other new properties are built and deposited into the Trust. Examples would be the on-going Shadow Ridge Enclaves II development, and potentially the building 4 at Ko Olina if that ever gets built. It would be interesting to see the market pricing for both of these properties if the Trust ever becomes overweighted in these.

Just thought I would pose the question. I may track ROFR on these properties if/when the day comes. Are there any other major developments that are scheduled that I'm not thinking of, that might be similar?

Best,

Greg

And don't forget about the Marriott Waikoloa property:

http://www.bizjournals.com/pacific/...ott-vacations-buying-240-rooms-at-hawaii.html

 

[Fasttr]

And don't forget about the Marriott Waikoloa property:

http://www.bizjournals.com/pacific/...ott-vacations-buying-240-rooms-at-hawaii.html

I think GregT's comments referred to locations where MVC has in the past sold weeks, but have recently added or are likely to add more units that will 100% go into the trust, making the location Trust heavy thus allowing MVC to be less aggressive on ROFR for resale weeks at that location.

New locations such as the Waikoloa will never be sold as weeks so ROFR will not apply in a traditional weeks sense.

 

[Ron98GT]

I think GregT's comments referred to locations where MVC has in the past sold weeks, but have recently added or are likely to add more units that will 100% go into the trust, making the location Trust heavy thus allowing MVC to be less aggressive on ROFR for resale weeks at that location.

New locations such as the Waikoloa will never be sold as weeks so ROFR will not apply in a traditional weeks sense.

Oh OK, a MVC TS complex/resort that was originally sold as weeks, but where a new building/addition only goes into the trust, with no weeks sales. So, wouldn't Crystal Shores, on Marco Island, also fit into that description, and if not why?

http://www.marcoislandflorida.com/s...l-shores-timeshare-expansion-begins/23998813/


BTW, I own a Shadow Ridge and didn't know that Marriott was still building in the Palm Desert, that was interesting to find out. One of these days were going to have to drive out there from Vegas and spend the weekend at Shadow Ridge and see what it's like. I just don't want to use my precious lock-off week that I use for 2-weeks in Hawaii every year. MOC/MM1, here we come in 5 weeks, for 2-weeks.

 

[GregT]

I own a Shadow Ridge and didn't know that Marriott was still building in the Palm Desert, that was interesting to find out. One of these days were going to have to drive out there from Vegas and spend the weekend at Shadow Ridge and see what it's like.

Shadow Ridge is almost doubling in size -- the new Enclaves section is enormous, I think it is adding 900 units to the existing 1,200 (from memory, so might be wildly off) -- but I do not it is not an insignificant addition.

I hope this theory bears out because that is a property that I can use buying to actually use. I agree with you that Oceana Palms could meet the definition.

These are the properties that are currently deepest in the Trust.

Grand Chateau.........................51,228,000
Ko'Olina..............................29,784,500
Newport Coast.........................28,185,750
Oceana Palms..........................23,163,000
Kalanipu'u............................18,293,500
Timber Lodge..........................17,088,250

I would think if any of these that added new buildings might be properties where Marriott doesn't need to ROFR. We will see.

I will also be curious if the possible Building 4 at ko Olina is built out exactly like the first three, or if they add a new view category (OF) that only exists in the Trust.

Best,

Greg

 

[GregT]

The new tower at Grand Chateau added over 35M points to the trust. So if they ever complete the fourth tower and with reacquired weeks, Grand Chateau will have probably creep close to 100M points in the trust.

Here is Dioxide's quote from the Recorded Trust Documents thread -- we may be seeing light ROFR on Grand Chateau partly in anticipation of a building 4 too.

Best,

Greg

 

[BocaBoy]

Shadow Ridge is almost doubling in size -- the new Enclaves section is enormous, I think it is adding 900 units to the existing 1,200 (from memory, so might be wildly off) -- but I do not it is not an insignificant addition.

I hope this theory bears out because that is a property that I can use buying to actually use. I agree with you that Oceana Palms could meet the definition.

These are the properties that are currently deepest in the Trust.

Grand Chateau.........................51,228,000
Ko'Olina..............................29,784,500
Newport Coast.........................28,185,750
Oceana Palms..........................23,163,000
Kalanipu'u............................18,293,500
Timber Lodge..........................17,088,250

I would think if any of these that added new buildings might be properties where Marriott doesn't need to ROFR. We will see.

I will also be curious if the possible Building 4 is built out exactly like the first three, or if they add a new view category (OF) that only exists in the Trust.

Best,

Greg

Greg, which property are you referring to in the bolded comment? I am confused. Thanks.

 

[GregT]

Greg, which property are you referring to in the bolded comment? I am confused. Thanks.

My error - added Ko Olina reference - thx for pointing it out!

Best,

Greg

 

[GreenTea]

Is there a sheet of sales like there used to be...the offer, the result of ROFR?

 

[nygiants11991]

I think a 1BR OF in original towers is worth 4,175 Marriott points, so if you subscribe to the ROFR metric theory (as I do), then an annual would need to price around $9,600 to clear ROFR.

The EOY unit you are considering should clear at $4,800.

How does that compare with your expectations?

Good luck and I hope you can get it for less!

Best,

Greg

Would you recommend I offer less? I was thinking I should offer $5000 so there was a better chance of it passing ROFR, and if it does it would be e good price. It is a great price compared to my first Maui Ocean Club unit. I bought directly for Marriott, I found TUGG after my purchase.

 

[BocaBoy]

My error - added Ko Olina reference - thx for pointing it out!

Best,

Greg

That is an interesting idea and one I never thought of. If they wish, they could indeed add a new OF category in the 4th building at Ko Olina, especially since Building 4 will be the closest to the ocean of all the towers.

 

[GregT]

Would you recommend I offer less? I was thinking I should offer $5000 so there was a better chance of it passing ROFR, and if it does it would be e good price. It is a great price compared to my first Maui Ocean Club unit. I bought directly for Marriott, I found TUGG after my purchase.

I don't really track pricing for the original tower, so can't really offer an assessment of what is a good price. $5,000 for an OF seems like a good price and I hope you can find a seller at that price. Let us know how it goes!

Best,

Greg

 

[BocaBoy]

I am considering a 1 bedroom Ocean Front every other year at Muai Ocean Club and wonder what would be a good price?

Any suggestions would be greatly appreciated.

Would you be staying there or trading for DC points? If staying there, I suggest a 2BR unit which is much more cost effective. If DC points, a 1BR might be just fine.

 

[nygiants11991]

I don't really track pricing for the original tower, so can't really offer an assessment of what is a good price. $5,000 for an OF seems like a good price and I hope you can find a seller at that price. Let us know how it goes!

Best,

Greg

I am submitting my offer tomorrow, so I will keep you posted.

 

[nygiants11991]

Would you be staying there or trading for DC points? If staying there, I suggest a 2BR unit which is much more cost effective. If DC points, a 1BR might be just fine.

It is to stay there. I know the annual fees are not much more for the two bedroom vs the one bedroom. We don't really need the extra room but really want the view and I feel if this passes the owner and Marriott, it is a pretty good deal.

 

[Fairwinds]

I think GregT's comments referred to locations where MVC has in the past sold weeks, but have recently added or are likely to add more units that will 100% go into the trust, making the location Trust heavy thus allowing MVC to be less aggressive on ROFR for resale weeks at that location.

New locations such as the Waikoloa will never be sold as weeks so ROFR will not apply in a traditional weeks sense.

St.Thomas has a couple of originally planned buildings that have not been built. I don't know if they ever will but they have the room.

Edit to add: oops, no rofr at MFC

 

[BocaBoy]

It is to stay there. I know the annual fees are not much more for the two bedroom vs the one bedroom. We don't really need the extra room but really want the view and I feel if this passes the owner and Marriott, it is a pretty good deal.

My thought was that with a 2BR you could lock off and either trade the studio or rent it to cover a good percentage of your maintenance fees, making it cheaper while still allowing you to stay in the 1BR with the OF view you want.

 

[nygiants11991]

My thought was that with a 2BR you could lock off and either trade the studio or rent it to cover a good percentage of your maintenance fees, making it cheaper while still allowing you to stay in the 1BR with the OF view you want.

You are absolutely correct, but I am not good at getting rid of rooms that I can't use.

 

[BocaBoy]

You are absolutely correct, but I am not good at getting rid of rooms that I can't use.

Fair enough. You understand the pros and cons and that is what is important. In any event, the price is attractive in my opinion.

 

[nygiants11991]

I don't really track pricing for the original tower, so can't really offer an assessment of what is a good price. $5,000 for an OF seems like a good price and I hope you can find a seller at that price. Let us know how it goes!

Best,

Greg

So I just found out yesterday Marriott exercised their ROFR on this one bedroom two bath every odd year oceanfront unit for $5000.

I kind of figured they would, but thought if they didn't, I got a great deal! Oh well maybe next time.

 

[SueDonJ]

So I just found out yesterday Marriott exercised their ROFR on this one bedroom two bath every odd year oceanfront unit for $5000.

I kind of figured they would, but thought if they didn't, I got a great deal! Oh well maybe next time.

You may want to post the details in the sticky ROFR thread, ROFR metric / Ongoing ROFR Activity . I'd move your post over there except that it has some continuity with this thread.