Plaza Condos Go On the Block

The condominium rooms and suites, now known as the Hotel Residences, will supplement an additional 130 oversized hotel rooms for overnight guests. The 182 private apartment residences at the Plaza are now more than 60 percent sold. Prices for The Hotel Residences will range from $1.6 million to $9 million.

According to Plaza owner and Elad president Miki Naftali, the storied property, buyers will reap the benefits of a newly refurbished interiors, including "the Palm Court, Oak Bar and Grand Ballroom. It's all part of a $350 million lobby to roof renovation."

Each of the 152 Hotel Residences at the Plaza will be available for purchase by individual private buyers who will be able to stay at their hotel condominium residence for up to 120 days a year. Other times the residence will return to the program of rooms and suites offered to hotel guests (or be rented out by individual owners), generating income for the condominium owners. The owner will receive 95 percent of the revenue from the rental program, while the manager receives a 5% management fee. The 95 percent of revenue received by the owner is offset by such expenses as nightly turndown and cleaning fees, a monthly contribution to the hotel's furniture, fixtures and equipment fund, and marketing, among other related expenses.

"The Hotel Residences provide private individuals, who may own homes elsewhere or who may only come to New York for a limited period of time, with the same once-in-a-lifetime opportunity to purchase a piece of the Plaza, at an attractive price point," Naftali says. The purchase would be reflective of their lifestyle requirements, and allow them to enjoy the landmark's storied past and be part of its elegant future."

The hotel will be entered through the main Fifth Ave. entrance to its own lobby. There will also be a private entrance, for heads of state and others requiring special arrangements, from West 58th Street. The southern wing of the landmark, wrapping around the southeasterly turret to a portion of the Fifth Ave. façade, is devoted to the hotel. The overnight portion of the luxury hotel will occupy the lower floors, with the Hotel Residences at the Plaza occupying floors 11 through 21.

The first of the Private Residences at the Plaza should be completed with move-ins slated for the spring of 2007. The hotel, managed by Fairmont Hotels, will open shortly thereafter. A grand opening celebration for the Plaza is planned for October 2007, the icon's 100th anniversary.