Apartment Property Will be Converted to Timeshare

ATLANTIC CITY-Jones Lang LaSalle’s hotel consulting group has been tapped by the owner of the old Tannen Towers, a vacant luxury apartment building, to find a joint venture partner to redevelop the property as a timeshare facility or possibly as a hotel. The current owner’s name was not disclosed.

The building has been renamed the Towers. The 31-story property is located near the main entrance to the Resorts Casino Hotel and is a prominent feature on this resort town’s skyline.

“Most people aren’t aware of the strength of the Atlantic City timeshare market,” says Arthur Adler, JLL Hotels’ managing director for the Americas. “Interval sales at the Towers’ two main competitors exceeded $45 million in 1999 and are on a pace to surpass that in 2000.” Originally conceived as a luxury high-rise condo complex, the Towers has 296 units, a five-story parking deck, health club, outdoor pool and 8,100 sf of retail and/or meeting space.

JLL Hotels’ SVP Alan Tantleff says that “opportunities exist to form strategic alliances with the casino hotels. All of the casinos need more rooms to generate casino traffic. The overall casino hotel market runs in excess of 95% occupancy annually. The two closest casinos, Resorts and the Taj Mahal, have expressed a willingness to work with us to make sure the property is redeveloped as a timeshare or hotel.”

In the past two years, Jones Lang LaSalle Hotels has sold more than 17,000 hotel rooms valued at $2.2 billion in 75 cities. Its advisory roster includes more than 200,000 rooms valued at $29.8 billion in 278 cities.