Developers are using luxury brand names on condos to appeal to buyers and command premium prices. Miami has become the center of this trend. The brand acts as a trusted reference for buyers who may never set foot in the building before signing a contract.
Fernando de Nuñez y Lugones, the head of Vertical Developments - a firm that has worked on brand-linked condos for Elle, Fendi, Armani, and the yacht maker Riva - noted: "Brands are very appealing in markets where there are a lot of out-of-state and foreign buyers." He added: "The brands act like third-party endorsements for buyers and brokers."
That third-party stamp lets developers charge a premium. In New York, listings at the Four Seasons Residences in the Tribeca neighborhood start at $2.4 million for a one-bedroom, 1.5-bathroom unit. On the Upper East Side, the cheapest available unit at the Giorgio Armani Residences is a two-bedroom, 2.5-bathroom apartment asking $8.9 million.
All 10 units in that building sold out before completion, grossing nearly $170 million. The penthouse fetched more than $30 million.
In Sunny Isles Beach, the Porsche Design Tower lets residents drive their vehicles up to their apartments via specially built glass elevators. The coming Bentley Residences will have apartments with parking for three or four vehicles.
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Aman, the ultraluxury hotel brand, is developing projects across several states. The Riva Residenze in Fort Lauderdale is set to be the first yacht-branded condo complex, featuring a private marina. An Elle-branded building in Miami's Edgewater neighborhood offers units starting at around $600,000.
Gil Dezer, CEO of Dezer Development, the company behind the Porsche and Bentley buildings, as well as Armani- and Trump-branded towers, said: "There are only a few more prestige brands that are so prestige that they want to lend their names to buildings."
Jon Paul Pérez, chief executive of the Related Group, whose company has built South Florida condos bearing the Ritz-Carlton, St. Regis, and Rosewood names, commented: "You have the feeling of living in a hotel with all the benefits, and you don't have to worry about transient guests. "I think that's a tremendous value for residential real estate"."
Branded condos offer more than a name. Condos linked to hotel brands target purchasers who want extensive amenities and attentive service. Buildings associated with fashion houses highlight their design aesthetics. Locations range from beachfront to downtown core.
Broker Wei Min Tan, who helps international buyers purchase Manhattan condos, said of the Four Seasons Residences: "Right now, they are transacting well. "I'm always on the lookout for the next good deal at the Four Seasons"."
Price points vary. Some high-end hotel-branded units start at $4 million to $5 million.
Several new branded towers are under construction or in planning. Aman has projects planned in multiple states. The supply of prestige brands willing to lend their names is limited, but demand from wealthy buyers shows no sign of slowing.
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