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Globacor Press Release

Big announcement proves beachside is ready to rock

Daytona Beach, May 7, 2013

For the first time in years, the beachside is rockin' and rollin.'

Local leaders are still cheering last week's announcement that a Hard Rock hotel, condo and cafe complex is coming to a prime oceanfront location on State Road A1A in Daytona Beach. The Hard Rock project is the latest and clearest indication that the beachside core of Daytona Beach is getting its groove back after years of stagnation.

Slated to open in 2016, the 375,000-square foot development will bring around 300 jobs to the beachfront. More important, Hard Rock International is an internationally known company - there are 179 Hard Rock venues in 57 countries - that should significantly raise the profile of Daytona Beach as a vacation and entertainment destination.

The Daytona Beach Hard Rock hotel and cafe will put the city in a select group of Florida locations that includes Orlando, Tampa and Hollywood.

City officials understandably are excited about Hard Rock's drawing power as an entertainment, dining and hotel venue, believing that it will fuel a surge of new development on the beachside.

Another mega project is in the works on the north end of A1A, where a Russian developer is preparing to break ground on a $150 million hotel/condo development. The two new projects should add 750 hotel rooms to the A1A strip.

According to city officials, investors are looking anew at the beachside - especially in the wake of the news about the Hard Rock. Apparently, people with money or access to money want to get in on the action along A1A.

This is quite a contrast to the business atmosphere on the beachside a decade ago. The beachside was struggling long before the Great Recession knocked the area on its back, leaving vacant hotels and condos, blighted properties and underpriced rooms at some of the better oceanfront hotels.

An $80 million renovation of the Ocean Center, the county's convention facility, was completed in the midst of the recession and didn't have the hoped-for economic impact. Daytona Beach officials and county leaders have been looking for the key to redevelopment, and, ironically, the bad economy may have provided it.

The combination of the recession and long-term decline drove down prices for beachfront property on the World's Most Famous Beach. Relatively low prices for attractive oceanfront locations drew investors' attention to Daytona Beach. Developers began taking advantage of the bargains as the recession slowly lifted and Daytona Beach's tourism-based economy showed renewed signs of life.

The reopening of the Daytona Beach Pier with a Joe's Crab Shack restaurant as an attraction helped get things going as the recession eased. Now development in the city's "entertainment zone" seems to be snowballing, and the national economic recovery should add to the momentum.

It's too soon to declare that the beachside is in the midst of a renaissance. The area still needs restaurants, upscale shops and more high-quality hotels. And the revitalization of the neighborhoods on the beachside will be the surest sign that Daytona Beach is returning to its former glory.

But there are clear indications the area is ready to rock. So county residents do have good cause to celebrate the news from the beachside.

About Globacor Partners Inc.
The Globacor Group of Companies has been successfully investing in businesses since 1996. Globacor's team of lawyers, bankers, tax advisors, accountants and real estate investment experts supports the implementation of solid business plans to deliver superior results. At Globacor, we understand that we will succeed only if our partners do. We have an unwavering commitment to share what we learn with our partners and to infuse everything we do with the knowledge we gain from being a leader in financial services.