Michael Beatty and H&S Properties Development Corp. fully intend to build out the condominium portion of the Four Seasons Hotel and Residences currently under construction in Harbor East.
The process will just take a little longer than first anticipated.
“I’m still very bullish on the project, but we’re building some flexibility into the plan,” Beatty said.
Construction is still on track for Four Seasons to open the hotel on Baltimore’s waterfront in 2010, Beatty said. The project was originally planned to climb 44 stories, with half of the project consisting of condominiums above the hotel when it opened.
But with the economy slumping and condo sales slow in Baltimore, the developer has opted to complete the hotel portion of the project and wait on the condo portion.
“Our stance has always been that we’d adjust to market changes,” Beatty said. “Our thought is, this will be the best product out there, and I believe we’ll build the entire tower.”
The new plan calls for a 21-story building, including the 256-room Four Seasons hotel on levels one to 18 with three additional floors. One of the top three floors will be developed as a preview gallery for the condos, Beatty said.
The developer then will look at the market and determine demand for the number of condo units and pricing before building.
“I’ve always said we’d be flexible with the units and pricing,” Beatty said. “The market will tell us the number of units and what the price is. We’ve always wanted to make sure this is an exclusive product.”
Baltimore’s condo market struggled through 2008, as more condo buyers canceled contracts last year than those who went through with settlement, according to statistics from Delta Associates, which tracks the condo market. Buyer activity has been slow at the 192-unit Ritz-Carlton Residences, which opened last year across Inner Harbor.
“They’re probably looking at what happened over at the Ritz. That would be their main competition,” said William Rich, Delta vice president and director of condominium practice. “They’re looking at the progress over there and thinking it might be better to hold off on the condo component for a few years.”
With other condo projects such as Silo Point and 414 Water Street open in Baltimore, Rich said it could take a few years before the city exhausts its condo inventory.
“A lot of these big projects have just come on the market, and there’s still a lot of inventory to fill up out there,” Rich said.
The Four Seasons project is part of a $600 million plan that includes a 24-story office tower that will house Legg Mason’s world headquarters. Beatty said the Legg Mason Tower would be completed by the spring.
