The brochure’s opening photo is of a schooner cutting across a seascape, and one line invites prospective buyers to “follow the lead of the Astors, the Rockefellers and the Vanderbilts.”
What’s being sold here? Waterfront luxury condos in Newport, called The Residences at Brown & Howard Wharf. No, the Astors, Rockefellers and Vanderbilts don’t own units there, although those affluent families have enjoyed living in Newport at one time or another.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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“If Donald Trump was building a development in Newport, [the units] wouldn’t be any nicer than what we are building right now,” said Joseph R. Paolino Jr., former mayor of Providence and a partner of Paolino Properties, a real estate firm in Providence.
His father, Joseph Paolino Sr., and developer Harold Schein are partners in the $50 million project, which consists of 16 condos in three four-story buildings on Thames Street, on what had been parking for the Brown & Howard Wharf, the younger Paolino said.
Schein, known for having built the Richmond Square complex in Providence, and Paolino Sr. purchased the marina property in the 1980s with the intent of developing condos, then delayed those plans when the real estate market declined at the end of the decade, Paolino Jr. said.
The partnership expects the first building to be ready for occupancy by September, with the second and third opening in November and next May, respectively. The condos are advertised as having “classic New England shingle-style architecture,” with generous balconies and ocean views.
With marketing efforts now in full swing, time will tell how well the market receives the luxury condos. Units are listed at $2.25 million to $4.5 million – the price for the penthouse in the building on the end of the wharf closest to the bay.
“I think they are putting top dollar on them,” said John P. Hodnett, vice president of Lila Delman Real Estate, which has an office in Newport. “It’s an exceptional property, they are doing it extremely well, and I think we have to see how the market is going to respond to it.”
The market for high-end real estate is not as strong as it has been in the past decade, so the right sale price can determine how fast a property sells, said Hodnett, whose firm is known for its many listings that exceed the $1 million mark.
“I think because it is so unique and interesting, they have to try for top dollar – and if they have to adjust accordingly, they may in the future,” said Hodnett, who has toured the development and reviewed the floor plans. He noted that he and other real estate brokers were invited to a promotional event for the project in Newport last week.
Paolino Properties, the broker for the project, has sold three units in the development for more than $3 million, Paolino Jr. said. He added that the firm expects to close on three more units within weeks.
The project has drawn interest from parties as far away as Florida, and most inquiries have come from out of state, he said. He believes the development will benefit from being in Newport, an internationally known resort city.
Hodnett agreed.
“Newport has, literally, international cachet,” the broker said. “People recognize Newport in Europe and South America.”
“If you do a project like that in Warwick or Narragansett or Jamestown or Barrington, it doesn’t have that international recognition,” he added.
Paolino bragged that the property’s marina over the years has attracted the likes of famous musician Jimmy Buffett and the owners of the National Football League’s Miami Dolphins and New Orleans Saints.
“We built a nice product,” he said, “but there’s only one Newport.”
