Prospective buyers of the 54 hotel/condominium "ocean lofts" at The Conservatory began touring the property Saturday, and the project's builder announced that 10 rooms were already reserved for sale before the gates officially opened.
"We're gratified people are able to see the quality of what we're doing before we've even finished it," said co-owner Bill Crowell, who reported two official sales on Saturday.
The kickoff marks a milestone for the controversial project, which was burned down mid-construction in April. Investigators believe the fire was started by an arsonist, but have never caught the culprit.
The project's reconstruction has gone smoothly, Crowell said, and the hotel/condominium is slated to open Feb. 1 under the new name Beach House Inn and Conference Center.
During a tour of the construction site and a model room inside a nearby sales trailer on Thursday, Crowell said he believes the Beach House will serve as a hotel for short-term visitors, not a home for condominium owners, as project critics claim. He repeatedly pressed home the point that the project is an "investment" for those buying into it, not a second home or time-share unit.
"This is how you know this is no residential (project)," he said at one point, pointing to a half-dozen unfinished rooms that will be used as management offices, a laundry and check-in.
According to a sales brochure, the project will be "reminiscent of a Nantucket summer house." Crowell, owner of the Half Moon Bay Lodge, goes further, claiming it will be equal or better than staying in a million-dollar beach house.
"What we're trying to do is bring to the overnight visitor to Half Moon Bay the ultimate beach experience," he boasted.
Crowell is aiming for a four-diamond rating from AAA and five stars from Mobil Travel Service. Rooms will rent for between $135 and $235 per night.
A central focus of the rooms is the "loft" concept, Crowell said, adding that the design draws upon Manhattan lofts where artists would have everything they needed in one room, but areas would have defined uses. An elevated sleeping area is separated from the entertainment area not by a full partition, but by a low wall.
"This is the Pacific Coast's answer to the Manhattan loft," said Crowell, who several years ago proposed a similar setup for townhomes at Stone Pine Center, but was turned down.
All Beach House rooms will be equipped with an "entertainment center" that includes two televisions, a wet bar and two-burner kitchenette, refrigerator stocked with Wolfgang Puck frozen pizzas, microwave, five-disc CD player, and wood-burning fireplace. Each room also has a king bed and fold-out queen bed, separate bathtub and shower, up to four telephones with fax-modem capability, and either a private balcony or patio.
Another showpiece for potential buyers, particularly for those interested in second- and third-story rooms, is the view. While the Beach House blocks the ocean and harbor views of some El Granada residents, those staying in the rooms can look out at the ocean or harbor a few hundred feet away.
High ceilings are used in the third-story penthouses to add an airy feel, Crowell said, a feature that will also undoubtedly pique El Granada residents, many of whom are still furious over the height of the hotel.
Beach House visitors will walk past a fountain and through a covered entry path at the front of the hotel and step into the main lobby, which features a large fireplace. The lobby branches off into several small areas for informal dining, gathering and meeting.
The Beach House's operation and booking will be overseen on a day-to-day basis by a private management company, headed by David C. Smith. The company will provide visitors with the usual daily housekeeping and maintenance services, as well as provide the rooms' owners with monthly and annual rental income and expense statements.
A key to the project's financial success, Crowell said, will be attracting mid-week business guests. To spur that, the project includes four separate meeting rooms totaling 1,856 square feet, including a centerpiece meeting room, The Ocean Terrace, which has large bay windows looking south across Half Moon Bay, and a covered and heated outdoor area for lounging.
The Ocean Terrace meeting room also is supposed to look out on a small lap pool and jacuzzi. The pool is advertised in brochures, but is just a wish at this time since the Half Moon Bay Planning Commission has yet to approve it. The matter is scheduled for consideration at Thursday's Planning Commission meeting, which begins at 7:30 p.m. at the Adcock Community/Senior Center, 535 Kelly Ave.
According to a city staff report, the pool would be located within a view corridor where development was to be restricted. The Coastal Commission has OK'd the pool, but city Planning Director Chris Gustin is requiring the application to go before the Planning Commission for review.
The amenities incorporated into the Beach House do not come cheap. For those willing to shell out the money to buy into the project, prices begin at $145,000 for one of seven rooms with a view of the surrounding hills, and up to $265,000 for penthouses with panoramic ocean views. All third-floor rooms are at least $40,000 more expensive than second-floor rooms.
Bob Marchant, who brought the project through the approval process before selling it to Crowell, is purchasing two of the most expensive rooms himself, Crowell said.
Explaining part of the rationale behind the project's conversion to a combination hotel/condominium, Crowell said banks today will not lend the money needed to build a project of the Beach House's quality.
Instead of having a single bank finance the project, Crowell said that by selling the rooms to individual owners he is able to "fractionalize" and distribute the amount of money needed among many investors.
As an investment, owners can expect to lose money in the early years, from $107 by year three for the least expensive rooms up to $5,200 for the most expensive, according to a cash flow forecast provided by Crowell to prospective buyers. The revenue generated by the business is split 50-50 between the management company and the rooms' owners.
Owning a room also does not automatically mean access to it, Crowell said. Owners can reserve their room on a moment's notice if it is not already booked. But if it is and the guest staying in it does not want to relocate to another room, the owner is out of luck, Crowell said.