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	<title>Observer &#187; Building Stories: Welcome Om! Miraval Condo Gives Recession the Spa Treatment</title>
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		<title>Observer &#187; Building Stories: Welcome Om! Miraval Condo Gives Recession the Spa Treatment</title>
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		<title>Building Stories: Welcome Om! Miraval Condo Gives Recession the Spa Treatment</title>

		<comments>http://observer.com/2009/04/building-stories-welcome-om-miraval-condo-gives-recession-the-spa-treatment/#comments</comments>
		<pubDate>Fri, 17 Apr 2009 13:05:58 -0400</pubDate>
					<link>http://observer.com/2009/04/building-stories-welcome-om-miraval-condo-gives-recession-the-spa-treatment/</link>
			<dc:creator>Lydia DePillis</dc:creator>
				
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		<description><![CDATA[<p>A couple of weekends ago, the 28th floor of 515 East 72nd Street turned into a shopping mall.</p>
<p class="MsoNormal">Corcoran Sunshine was trying something unorthodox. Miraval Living, the luxury spa-condo spawn of an Arizona-based resort company, is 40 percent full after being on the market for over two and a half years. So, the brokers brought in about a dozen boutique retailers with names like Haute Hippie and Flutter, to lure female condo hunters (a male-oriented event is in the works).</p>
<p class="MsoNormal">A flock of 30 smiling, well-groomed staffers&mdash;not including the labels&rsquo; reps&mdash;floated through offering drinks and taking coats. Upon entering, I was immediately paired with marketing director Jen Hall, who guided me through the bazaar.</p>
<p class="MsoNormal">&ldquo;Instead of having a really flashy campaign, we&rsquo;re bringing in something that&rsquo;s very true and very reflective of what the building is,&rdquo; said Ms. Hall, in a soothing spa-toned voice. We passed blown-up shots by <em>Vanity Fair</em> photographer Mark Seliger, depicting residents in scenes of peaceful repose, opposite a quotation from Proust: &ldquo;The real voyage is not in seeking new landscapes but having new eyes.&rdquo;</p>
<p class="MsoNormal">The three-day event had included a &ldquo;friends and family&rdquo; night, where current residents were invited to mingle and browse. The younger girls were particularly amused, according to another guide.</p>
<p class="MsoNormal">&ldquo;They were so taken by the shiny headbands, and it was <em>so</em> wonderful,&rdquo; said Sarah Winters, a bubbly rep with Dan Klores Communications. &ldquo;It really <em>is</em> a community.&rdquo;</p>
<p class="MsoNormal">We ran into Nancy Burger of Grace Group, which puts on the &ldquo;pop-up&rdquo; retail events. Ms. Hall was explaining how this dual-purpose experience gets prospective buyers more used to the idea of spending your money on an apartment. Ms. Berger interjected: &ldquo;To spending your money period!&rdquo;</p>
<p class="MsoNormal">&nbsp;</p>
<p class="MsoNormal">THE 40-STORY MIRAVAL LIVING, built in 1985 as River Terrace, had always been slated for condos&mdash;economic conditions led owner Harry Macklowe to keep it as a rental. For two decades, it bumbled along as an average property with serviceable apartments at Upper East Side rents; owners association president Stewart Chassen estimates it had about one-third yearly turnover, with nearly all its 408 apartments occupied.</p>
<p class="MsoNormal">When C&amp;K properties and Zamir Equities bought it for $365 million in 2005, all but nine of the tenants left&mdash;a lot fewer than the developers had expected. Those who stayed got a slight break on their purchase prices, and massive renovations on the rest of the building began.</p>
<p class="MsoNormal">One of those who stayed was Seymour Lieberman, a 92-year-old professor emeritus at Columbia who still maintains a lab at Roosevelt  Hospital. He didn&rsquo;t feel like moving when the building converted, but finds the construction noise &ldquo;unbearable&rdquo;&mdash;one family on his sparsely populated floor had moved out because of the noise that morning&mdash;and the amenities unimpressive.</p>
<p class="MsoNormal">&ldquo;None of them appeal to me whatsoever. It&rsquo;s gussying up the place,&rdquo; he said over he phone from his one-bedroom apartment. &ldquo;I enjoy my work, I&rsquo;m living a good old age, except for this damn apartment.&rdquo;</p>
<p class="MsoNormal">Ongoing construction, scheduled to finish up by the end of the summer, may be one reason sales have been sluggish. Then, of course, there&rsquo;s the economy. But it&rsquo;s still the only building of its kind in New York City, and the owners haven&rsquo;t lowered prices significantly; they&rsquo;re still around $1,455 per square foot, according to Streeteasy, which is only a hair above last year&rsquo;s fourth-quarter average for the neighborhood.</p>
<p class="MsoNormal">Instead, management swapped out the brokering team&mdash;twice. In September 2007, they replaced the Marketing Directors with Prudential Douglas Elliman super-seller Dolly Lenz, and ousted her for Corcoran last November.</p>
<p class="MsoNormal">&ldquo;Change is good. It spurs interest, it spurs demand,&rdquo; explained project manager Jim Sheehan. On the difference between Corcoran and its predecessors: &ldquo;I think that they&rsquo;re reaching out to the entire brokerage community. And not just within their own firm.&rdquo; (Ms. Lenz and the Marketing Directors could not be reached for comment.)</p>
<p class="MsoNormal">The new team hasn&rsquo;t been massively more successful. Since taking over, 19 units have been sold, compared to about 75 each for Ms. Lenz and the Marketing Directors.</p>
<p class="MsoNormal"><span>Elliman broker Max Dobens, who is on the team of Lenz rival Jackie Teplitzky, thinks the spa-condo concept is just off-base. &ldquo;You don&rsquo;t relax when you leave a screaming 2-year old on the 24th floor to go down to a spa on the fourth floor. The brain doesn&rsquo;t work that way,&rdquo; he said. &ldquo;Part of becoming relaxed is leaving the energy of New York, and I don&rsquo;t think that it&rsquo;s a flick-of-a-light-switch event.&rdquo;</span></p>
<p class="MsoNormal">&nbsp;</p>
<p class="MsoNormal">HOW <em>DO</em> YOU MARKET OVER-THE-TOP luxury in modest times such as these? The new strategy, Corcoran says, isn&rsquo;t about luxury at all: It&rsquo;s about &ldquo;healthful living,&rdquo; an in-house vacation, every day of the week.</p>
<p class="MsoNormal">&ldquo;The previous firms pretty much only marketed on the Miraval Spa. It was all about the spa, and it wasn&rsquo;t that much about the real estate,&rdquo; said senior managing director James Lansill. The building is attracting people moving back from the suburbs; brokers advertise the units as replacing the need for a second home. &ldquo;This building happens to suit that highly revised way that people are pursuing things.&rdquo;</p>
<p class="MsoNormal">Back at the weekend open house, Ms. Hall and I had descended from the show floor to tour the gleaming new facilities. There&rsquo;s the largest private park in New York City. The fully equipped fitness center, with leather-seated machines. There&rsquo;s the cafe, where you can get a smoothie on your way to work, catch a cab and pick up dinner on the way back.</p>
<p class="MsoNormal">&ldquo;This is what makes me truly covet the building as well,&rdquo; Ms. Hall smiled, taking us to a serene Olympic-size pool, and the expensively tiled women&rsquo;s locker room, outfitted with Miraval bath products. Miraval advisers are available to tailor your health regimen. Art classes will be held for your kids.</p>
<p class="MsoNormal">So the point is that people never really have to leave?</p>
<p class="MsoNormal">&ldquo;Yes,&rdquo; she affirmed. &ldquo;People are so busy now.&rdquo;</p>
]]></description>
		<content:encoded><![CDATA[<p>A couple of weekends ago, the 28th floor of 515 East 72nd Street turned into a shopping mall.</p>
<p class="MsoNormal">Corcoran Sunshine was trying something unorthodox. Miraval Living, the luxury spa-condo spawn of an Arizona-based resort company, is 40 percent full after being on the market for over two and a half years. So, the brokers brought in about a dozen boutique retailers with names like Haute Hippie and Flutter, to lure female condo hunters (a male-oriented event is in the works).</p>
<p class="MsoNormal">A flock of 30 smiling, well-groomed staffers&mdash;not including the labels&rsquo; reps&mdash;floated through offering drinks and taking coats. Upon entering, I was immediately paired with marketing director Jen Hall, who guided me through the bazaar.</p>
<p class="MsoNormal">&ldquo;Instead of having a really flashy campaign, we&rsquo;re bringing in something that&rsquo;s very true and very reflective of what the building is,&rdquo; said Ms. Hall, in a soothing spa-toned voice. We passed blown-up shots by <em>Vanity Fair</em> photographer Mark Seliger, depicting residents in scenes of peaceful repose, opposite a quotation from Proust: &ldquo;The real voyage is not in seeking new landscapes but having new eyes.&rdquo;</p>
<p class="MsoNormal">The three-day event had included a &ldquo;friends and family&rdquo; night, where current residents were invited to mingle and browse. The younger girls were particularly amused, according to another guide.</p>
<p class="MsoNormal">&ldquo;They were so taken by the shiny headbands, and it was <em>so</em> wonderful,&rdquo; said Sarah Winters, a bubbly rep with Dan Klores Communications. &ldquo;It really <em>is</em> a community.&rdquo;</p>
<p class="MsoNormal">We ran into Nancy Burger of Grace Group, which puts on the &ldquo;pop-up&rdquo; retail events. Ms. Hall was explaining how this dual-purpose experience gets prospective buyers more used to the idea of spending your money on an apartment. Ms. Berger interjected: &ldquo;To spending your money period!&rdquo;</p>
<p class="MsoNormal">&nbsp;</p>
<p class="MsoNormal">THE 40-STORY MIRAVAL LIVING, built in 1985 as River Terrace, had always been slated for condos&mdash;economic conditions led owner Harry Macklowe to keep it as a rental. For two decades, it bumbled along as an average property with serviceable apartments at Upper East Side rents; owners association president Stewart Chassen estimates it had about one-third yearly turnover, with nearly all its 408 apartments occupied.</p>
<p class="MsoNormal">When C&amp;K properties and Zamir Equities bought it for $365 million in 2005, all but nine of the tenants left&mdash;a lot fewer than the developers had expected. Those who stayed got a slight break on their purchase prices, and massive renovations on the rest of the building began.</p>
<p class="MsoNormal">One of those who stayed was Seymour Lieberman, a 92-year-old professor emeritus at Columbia who still maintains a lab at Roosevelt  Hospital. He didn&rsquo;t feel like moving when the building converted, but finds the construction noise &ldquo;unbearable&rdquo;&mdash;one family on his sparsely populated floor had moved out because of the noise that morning&mdash;and the amenities unimpressive.</p>
<p class="MsoNormal">&ldquo;None of them appeal to me whatsoever. It&rsquo;s gussying up the place,&rdquo; he said over he phone from his one-bedroom apartment. &ldquo;I enjoy my work, I&rsquo;m living a good old age, except for this damn apartment.&rdquo;</p>
<p class="MsoNormal">Ongoing construction, scheduled to finish up by the end of the summer, may be one reason sales have been sluggish. Then, of course, there&rsquo;s the economy. But it&rsquo;s still the only building of its kind in New York City, and the owners haven&rsquo;t lowered prices significantly; they&rsquo;re still around $1,455 per square foot, according to Streeteasy, which is only a hair above last year&rsquo;s fourth-quarter average for the neighborhood.</p>
<p class="MsoNormal">Instead, management swapped out the brokering team&mdash;twice. In September 2007, they replaced the Marketing Directors with Prudential Douglas Elliman super-seller Dolly Lenz, and ousted her for Corcoran last November.</p>
<p class="MsoNormal">&ldquo;Change is good. It spurs interest, it spurs demand,&rdquo; explained project manager Jim Sheehan. On the difference between Corcoran and its predecessors: &ldquo;I think that they&rsquo;re reaching out to the entire brokerage community. And not just within their own firm.&rdquo; (Ms. Lenz and the Marketing Directors could not be reached for comment.)</p>
<p class="MsoNormal">The new team hasn&rsquo;t been massively more successful. Since taking over, 19 units have been sold, compared to about 75 each for Ms. Lenz and the Marketing Directors.</p>
<p class="MsoNormal"><span>Elliman broker Max Dobens, who is on the team of Lenz rival Jackie Teplitzky, thinks the spa-condo concept is just off-base. &ldquo;You don&rsquo;t relax when you leave a screaming 2-year old on the 24th floor to go down to a spa on the fourth floor. The brain doesn&rsquo;t work that way,&rdquo; he said. &ldquo;Part of becoming relaxed is leaving the energy of New York, and I don&rsquo;t think that it&rsquo;s a flick-of-a-light-switch event.&rdquo;</span></p>
<p class="MsoNormal">&nbsp;</p>
<p class="MsoNormal">HOW <em>DO</em> YOU MARKET OVER-THE-TOP luxury in modest times such as these? The new strategy, Corcoran says, isn&rsquo;t about luxury at all: It&rsquo;s about &ldquo;healthful living,&rdquo; an in-house vacation, every day of the week.</p>
<p class="MsoNormal">&ldquo;The previous firms pretty much only marketed on the Miraval Spa. It was all about the spa, and it wasn&rsquo;t that much about the real estate,&rdquo; said senior managing director James Lansill. The building is attracting people moving back from the suburbs; brokers advertise the units as replacing the need for a second home. &ldquo;This building happens to suit that highly revised way that people are pursuing things.&rdquo;</p>
<p class="MsoNormal">Back at the weekend open house, Ms. Hall and I had descended from the show floor to tour the gleaming new facilities. There&rsquo;s the largest private park in New York City. The fully equipped fitness center, with leather-seated machines. There&rsquo;s the cafe, where you can get a smoothie on your way to work, catch a cab and pick up dinner on the way back.</p>
<p class="MsoNormal">&ldquo;This is what makes me truly covet the building as well,&rdquo; Ms. Hall smiled, taking us to a serene Olympic-size pool, and the expensively tiled women&rsquo;s locker room, outfitted with Miraval bath products. Miraval advisers are available to tailor your health regimen. Art classes will be held for your kids.</p>
<p class="MsoNormal">So the point is that people never really have to leave?</p>
<p class="MsoNormal">&ldquo;Yes,&rdquo; she affirmed. &ldquo;People are so busy now.&rdquo;</p>
]]></content:encoded>
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