Sales for the Phillips Club reach $35 million in 2 yrs

Real Estate Weekly, Sept 18, 2002

The Phillips Club, a membership-based luxury residence in New York City, has reached 200 members and $35 million in sales in its first two years. Launched at the end of 1999 by developer Millennium Partners, the club is well ahead of its anticipated pace.

Located on W. 66th St. in Manhattan, the Phillips Club offers a unique combination of extended stay lodging and fractional ownership in a residential setting. Members of the 80-unit club are equity stakeholders with one-eighth ownership of each club residence and can use the apartments at any time, depending on availability.

Members take advantage of the additional living space and amenities that luxury hotels do not provide. They can avoid such hassles as reserving dates months in advance, long check-in lines, and even packing. Reservations can be made as late as day of arrival or as far out as 14 months.

In addition, club members enjoy 24-hour concierge and house. keeping service, meeting rooms, office space, a cherry-paneled library and entertainment den, and signing privileges at super-gym Reebok Sports Club, another Millennium property.

An executive one-bedroom membership apartment of 1,200 SF sells for $229,000; a three-bedroom unit of 2,100 SF is priced at around $340,000.

Units are fully outfitted with high-end furnishings, such as Villeroy & Bosch china and Frette linens. Kitchens are equipped with granite counters, a gas stove, and a dishwasher. Each apartment also comes equipped with a full entertainment center, including video rental privileges at Tower Records and a T1 high-speed Internet connection. Private residence clubs are the fastest growing segment in the time-share industry, with sales growth of 115% in 2000 and 24% in 2001, according to Ragatz Associates, a national real estate market research company.

"Our concept is on a definite upswing, despite the soft economy and lagging New York City tourism industry," said Ed Schnatterly, membership director for The Phillips Club.

"Because of the uncertainties associated with costly long-term investments, The Phillips Club offers the best way to get a an affordable piece of New York real estate."

The Phillips Club caters to those visitors who spend a considerate amount of time in the city. Owners typically stay an average of 60 nights per year, but may stay an unlimited number of nights, depending on availability. Many units are used by corporations to house out-of-town employees. For more information, please contact the Phillips Club at (212) 835-8800.