While the Florida real estate market founders, Disney is doing its part to try and bring those property values back up. The Walt Disney Corporation plans to install a 980-acre luxury resort community complete with multi-million dollar homes, a Four Seasons hotel and spa, golf course and wildlife preserve within the Disney Compound in Florida. Property ownership within the community also comes with access to a clubhouse, a concierge and full access to Disney facilities as well as VIP transportation, special-event tickets and community-hosted activities[1].
The Disney corporation hopes that even though new homes sales fell another 33% in May according to the Florida Commerce Department that still-affluent travelers and Mickey-aficionados will find the high price of the new construction worth paying in light of the exclusive benefits associated with the community. Disney hopes to have the first homes in the community constructed by 2011.
Do you think this type of ultra-opulent construction makes sense for Disney and for Florida at this time? Why or why not?
Thank you for reading the Bryan Ellis Real Estate Letter! Your comments and questions are welcomed below.
[1] http://www.tcpalm.com/news/2010/jun/29/neighbors-with-mickey-disney-to-offer-dollar-as/
For Disney, yes! The project is very long term, all the homes are built to order and they have the money to sit on this for however long it takes to sell these very high end homes. If I remember correctly they will start at 8 million dollars.
It adds value to the community, taxes to the state and has absolutely no effect on any one else, except those that have some work building the homes. Disney is still a non-government held company.
I would never bet against Disney, but I think this one may be ill timed. They did well with Celebration but after they were no longer associated with it, prices have dropped there by up to 55%.
I’m sure they have done their homework and may be able to pull it off, but I don’t see these homes appreciating in value after the sale like Celebration initially did.
As a fairly new investor I think Disney’s move make sense. I would imagine that Disney has acquired that property at a very significant discount in this market. And if this is the case, it should provide a healthy margin of safety to move forward with this project. With all the Disney attractions and various other amenities and benefits their target market (the ultra rich) would stand in line to buy into the project.
It makes perfect sense for the Disney Corporation to buy the properties now in this Down Market. Disney Corporation will have money from America and around the world investing as well as visiting Orlando areas, Building generates jobs and growth. Its great for Disney Corporation it great for the Buyers and Great for the America / Economy.
My initial reaction was did Disney survey potential buyers in order to quantify the success of the investment. My second reaction was it is a very good time to buy property at depressed prices as long as you have a buyer on the other end to receive a quick return on the investment.
Look, If a Billionaire Russian guy, with YELLOW TEETH, can buy the NBA NY NETS at a Discount, then DISNEYS FISCAL RESPONSIBILITY to its shareholders should also be applauded.
Their ablility to invest in something that up to now, due to the cost, have not been able to accomplish, and in this market, which will never be seen again, dont YOU think the Economists Disney Employs see this as being Fiscally Prudent?.
Constructions PLUNGE will also enable DISNEY to complete this at a cost that is CONSIDERABLY lower than ever before, with higher quality and workmanship, since most guys working on this project WERENT working prior to this.And we all know that DISNEY has the STRICTEST WORK CODES FOR CONSTRUCTION EMPLOYEE’s ( I was a UNION CARPENTER CONSIDERABLE TIME AGO-wow, some things never change) NO REAL CARPENTERS EVER WANTED THEIR UNION JOBS.
PERFECT Timing-low wages, massive unemployment in construction everywhere, but especially with Florida’s downslide, cheap materials-HOME DEPOT HAS CRAZY ADS-never before, cities need SOME additional Tax Base, heck, they already lost it all, need some BAIL OUTs, and most travelers to DW-looking for HIGH END ACCOMODATIONS.
Perfect Disnery, great timing all around, cheap $$, labor, Land, etc.
The rich are getting richer. Disney seems to always take advantage of cheap land and build on it. So far, it’s worked out for them. But I sure wouldn’t risk building new homes in Florida!!!
The rich have money to spend and they are starting to again. I have been planning a luxury vacation home club for several years. Gratefully I did not start it a few years ago. I think now is the time. I may consider buying a few homes for our club members at Disney.