Condado renaissance moves forward
By LORRAINE BLASOR, Caribbean Business

Like a force of nature, the billion-dollar renaissance of Condado—San Juan’s premier tourist and residential area—forges ahead even as some insiders expressed fears the government’s recent decision to paralyze Paseo Caribe, the controversial upscale development on the western edge of Condado Lagoon, will have an impact.

Real-estate sources also noted demand for real estate may be flagging since speculators who were active in Condado have been forced out of the picture by the economic recession. Much of the speculation in the area involved the purchase of apartments that were resold, or “flipped,” at a higher price. “My feeling is that most people are no longer speculating with real estate,” said a professional active in the area’s real-estate industry, also warning that projects in less-desirable sections of Condado may experience a 5% to 10% price drop.

But for now, the area’s visible transformation continues to generate optimism. “Construction is always a headache, but with time, it is going to be spectacular,” said Sandra Miranda Medina, operator of the Style Lounge in the Da Vinci Building.

New businesses are moving in, including a colorful bicycle-taxi service; a few new condominiums are going up, or will very soon, and the long-awaited construction of the new Dos Hermanos bridge should finally begin in March, according to José Hernández, assistant executive director in charge of infrastructure at the Highways & Transportation Authority. Bidding on the bridge project opens Feb. 22, and a decision on the winning bid will most likely take a couple weeks. The $40 million project, with 80% federal funding, is expected to take three years to complete, he said.

In recent months, the landscape of Condado has witnessed continued transformation. During this period, some companies have moved out, most notably Tiri Real Estate, a fixture in the area for more than three decades, while others have changed locales, including Condom World, which has moved next door to UBS Financial Services Inc., across from Walgreens on Ashford Avenue. While the latest investments in the area do not amount to exorbitant amounts of money, they do represent an injection of capital in a difficult economy and valuable new jobs. They also will help to draw more traffic and investment to the area in a snowball effect that one hotelier compared to the metamorphosis of Times Square in New York.

The ongoing transformation of Condado relieves the blight that persists in the area. One hotel executive said it is time for the government to step in and declare vacant properties a public nuisance and tear down the empty buildings on them. It is not just a question of looks. Some of these buildings pose hazards and are an invitation to vandals. Apart from the need for more space, Condom World moved out of the locale it was renting in a rundown building because of problems with water leaks and termites, according to employee Edgardo González. And Edwin Narváez, who recently relocated his dry cleaning business to a rundown structure close to La Concha, said the upper floors of this building have been totally vandalized, with thieves stealing just about everything available, from plumbing to windows and cables.

Some of the projects under way in the area are nearing completion or are close to it. Chief among them is La Concha Renaissance Hotel, the centerpiece of the area’s renaissance and part of a much larger project that will take a couple of more years to complete. Out of a total of 250 rooms, 130 still remain to be completed but should be ready by mid-February with the casino scheduled for completion by the end of summer. Perla Restaurant, to be run as a concession by Dayn Smith, owner of Stingray restaurant in El Conquistador, should be ready by March, he said. Level 25, another restaurant within the hotel, is already serving breakfast and dinner and will open for lunch early in February.

The impressive Acquamarina, a luxury condominium next door to the San Juan Marriott Resort & Stellaris Casino, is just about complete, and construction has begun on Mirsonia, a small condominium on the corner of De Diego Avenue and Mirsonia Street. Its developers paid close to $5 million for the land. And Gallery Plaza, the 24-story, twin-tower project on De Diego that serves as a grand portal to Condado, is just about ready with only detail work remaining to be done, according to J.P. McCloskey, one of the developers. Nearly 50% of the apartments in the South Tower have been delivered and the other 50% are sold out, while apartments in the North Tower will be delivered as soon as the use permits are approved, he said, adding that about 80% to 85% of the apartments in the North Tower are sold. “We have had no cancellations,” he said.

Meanwhile, construction work has begun on The Residence at the Park, on the corner of Luchetti and Cervantes Streets. The $22 million luxury condominium consists of 14 apartments of which 12 have already been optioned, according to architect Lucas Cambó. He said the project should take about a year and a half to build. Cambó also is behind Oceanica, another recently completed luxury condominium; delivery of the first units is already under way, he said.

Two more luxury condominiums slated for Condado with Cambó’s imprint are the $12 million The Plaza, across from Placita Las Nereidas and facing La Concha, and Grand Bay, an 18-unit building slated for construction on Vieques Street, overlooking Condado Lagoon. Apartments in both these projects are in the $1.5 million range, he said.

Another luxury condominium nearing completion is Venetian Towers on Rodríguez Serra Street near the Ashford Medical Center. It began construction about 18 months ago and is 70% optioned, with the units ready to close as soon as the use permits are in, said Javier Méndez, administrator of Venetian Investment Group. The apartments are priced between $1.8 million and $3 million.

While large projects under construction in Condado are coming to fruition, others remain mired in bureaucracy. Such is the case of the Regency Condado Center and Laguna del Mar Plaza, a $215 million project the Cacho Group had hoped to commence last year but is still tied up in the permitting process. Last year, developer Roberto Cacho said it would take one year to complete the Regency, a project that combines a condo-hotel with eight floors of parking plus a condominium tower, and two years to build the two towers that make up Laguna del Mar.

Recent investments in Condado include a brand new small hotel, Le Consulat, and several new restaurants. Le Consulat, on Magdalena Street, is the brainchild of IHP Hospitality Group, a family-owned company based in Aguadilla that operates several hostelries on the island. As a Clarion Collection hotel, Le Consulat will benefit from that chain’s worldwide reservations network, said the hostelry’s young manager, Janisse Robles. She proudly showed off the ground floor of the small, hip hostelry, which has 20 rooms, spread out over three floors (a fourth floor is exclusively reserved for the owners). The rooms are beautifully decorated, each with a wall-mounted, 32-inch LCD TV set and plenty of pillows for the comfort of guests. There is also a stunning pool area, open yet intimate at the same time, thanks to three walls that ensure privacy. Robles said the hotel will cater to young corporate executives and should do well this winter season. “We hope to reach a 75% occupancy rate by February,” she said.

Restaurant additions in Condado offer new dining options to area residents, visitors and tourists: Budatai, the restaurant owned by Puerto Rico’s premier chef, Robert Treviño; Tayzan, a Chinese restaurant; Panzanella, an open-air eatery on the ground floor of the Da Vinci Building; and Umo Argentina Grill, currently in the permitting process but scheduled to open soon.

Umo will probably cost in excess of $1 million, according to Pablo Crucci, one of the three young investors in the restaurant that is currently under construction. He said finding an affordable locale was the trio’s biggest challenge since spaces in Condado are either exorbitantly priced or not available for rent. Still, he couldn’t be happier with his location. “You won’t find these many restaurants with excellent service in one spot,” he said, pointing to his future competition, which comprises no less than eight restaurants, all in the same area including Zabó, Via Appia, Wine Bar & Grill, Yerba Buena, Colombo Frozen Yogurt Café and Danny’s Pizza. Umo will employ 50 people and, according to Crucci, “We have recruited almost all of them.”

Relaxed and informal, Panzanella opened in December and features pasta, fresh salad and wraps on its menu. Owner Angelo González said he spent $65,000 to open the restaurant, which is part of a local franchise that debuted in Caguas late last year. His investment covered the cost of the franchise license, equipment, inventory and two refrigerators. Gonzalez is brimming with ideas on how to grow his business and said he has come up with specially priced menus to attract employees working in nearby hotels and businesses. He is even arranging a beach-delivery service soon.

He shares space with the hair salon / entertainment lounge Miranda Medina has been running for the past four years. “I have been able to survive the transformation of Condado,” said Medina, who feels very positive about the development going on in the area. Both González and Miranda are teaming up to offer Tango, Salsa and Flamenco evening entertainment on weekends that they hope will help draw more people to their respective businesses.

Though a new tenant on Ashford Avenue, Miró restaurant is not new to Condado. Until last October, it operated on Condado Avenue, but has subsequently moved to the former Charthouse building across from the San Juan Marriott. Owner José Lavilla said he invested $500,000 to upgrade the 4,600-square-foot space. Considering the economy, business is going well, but he conceded regular customers who used to stop by three times per week are now coming in only once.