TIMESHARE IN D.C.

Source: Equivest

March 26, 1999
Timeshare owners soon may be able to add Pennsylvania Avenue to their list of part-time getaways. Equivest Finance plans to build a 60- to 65-unit timeshare resort hotel at 2501 Pennsylvania Ave. NW, between Georgetown and Washington Circle. The project is called Capital City Suites.

Timeshares -- condominium complexes that allow different owners to occupy units during assigned periods -- traditionally have been built at beaches and resorts but are becoming more popular in urban areas.

"We think it's a wonderful location, and we plan to build a gorgeous building there," said Richard Breeden, CEO of Equivest. The publicly traded company, based in Greenwich, Conn., already has permits to build on the West End property, Breeden said. Equivest plans to incorporate facades of existing buildings on the site. Further information on when construction would begin or a target opening was not available.

The Pennsylvania Avenue property is one of six that Equivest is acquiring from Kosmas Group International of New Smyrna Beach, Fla. Equivest also will acquire timeshare resorts in Ocean City, Md., New Orleans and the Virgin Islands. Breeden said the Washington and New Orleans projects will give the company's "owners" -- the 23,000 people who own timeshare units in Equivest projects -- an urban vacation opportunity.

Another company, Fairfield Communities of Little Rock, Ark., also sees a trend toward urban timeshares. It is building an 88-unit complex in Old Town Alexandria. "In a sense, what they figured is that this a financial vehicle for urban areas as well," said Ted Seale, director of hospitality relations for Thorne Consultants in Kensington.

Kosmas Group acquired the Washington development site and other timeshare properties being sold to Equivest as part of a rapid expansion when it planned to go public in 1998. But the company remained private and refocused on its Florida properties, leading to the sale of the timeshare properties. Equivest will pay Kosmas $4 million and assume about $42 million in debt on the properties. The deal is expected to close by the end of the month. Information on the individual price of the Pennsylvania Avenue property was not available.

Through subsidiaries Resort Funding and Eastern Resorts, Equivest finances 30 resorts and operates seven resorts in Europe, the Caribbean and the United States. The company reported 1998 earnings of $5.2 million on revenue of $29.6 million. Shares of Equivest (Nasdaq: EQUI) closed March 17 at $6.44 The 52-week high is $8.63; the 52-week low is $3.50.