Permanent part-time home

From today's San Francisco Business Times,

Time-shares have always been the poor cousin of the residential real estate market, and in San Francisco they have been nearly invisible -- until now. A new, much more sophisticated and expensive breed of time-share is surfacing in prominent locations from Market Street to the Wine Country. They are called fractionals, and buyers can obtain as little as one-twelfth deeds to the property. More traditional time-shares are increasing as well, popping up on Nob Hill and around Union Square.

Time-share developers are converting small hotels and office buildings in San Francisco for their projects. Major hotel groups such as Ritz-Carlton and Fairmont are trying to extend their prestige brands to make the fractional concept a more sophisticated and urban experience. Instead of golf and surf, they are selling San Francisco's big-city sophistication to sway fractional buyers. Recent deals include JMA Ventures hooking up with Fairmont to buy buildings in Ghirardelli Square for fractional conversion and Trendwest Resorts buying the well-located Juliana Hotel near Union Square.

San Francisco and New York City have the best potential for time-share development over the next five years, according to Anwar Elgonemy, a Jones Lang LaSalle vice president who has advised time-share developers in Colorado, Florida and the Caribbean. Elgonemy said developers take a high risk because of rising property and construction costs, but work on a higher profit margin. Hotel developers work on 17 percent margins, while time-share investors seek a minimum 25 percent. [more...]

Buyers snap up Ritz-Carlton condominiums on Market Street [SFHomeBlog]
Ritz-Carlton Club - San Francisco Resort [RitzCarltonRealEstate.com]
Ritz says it sold $106M in S.F. timeshare units [SF Business Times]
The Fractionalization of SF? [Curbed SF]