Developer Mark McClure expects RH Collaboration to elevate condo owners rental profits
PORTLAND ME, December 11, 2023 /24-7PressRelease/ — The Mark at Cumberland Foreside, an upscale, 45-unit condo development, has reached 40% of construction completed. The project, spearheaded by developer Mark McClure, has garnered widespread, regional attention, sparking inquiries from prospective buyers spanning across New England, New York, Washington D.C., Connecticut, and New Jersey.
Despite the project’s buzz, however, listing broker Tom Landry and developer Mark McClure have chosen to defer reservations until potential buyers have the opportunity to fully experience the development firsthand, and essentially “touch, taste and feel it”. As the project approaches this crucial stage, McClure is unveiling plans to elevate a select block of units through a collaborative design package with Restoration Hardware, now commonly referred to as RH, with his wife Paula Wallem leading the way in coordination with the RH team.
The collaboration with RH aims to offer unit owners a distinctive edge, positioning their investment as an attractive choice for both short-term and long-term rentals. McClure believes that by incorporating the renowned high-end quality and design synonymous with the RH brand, unit owners can command higher rental rates, catering to a discerning clientele.
In explaining the strategy behind the collaboration, McClure highlighted the seasonal fluctuations in Maine’s hotel and Airbnb prices, which experience significant surges during the summer months. With The Mark at Cumberland Foreside’s RH-designed units, owners can anticipate increased rental income not only during peak seasons but throughout the off-season, attracting clientele who appreciate the sophistication associated with a brand like RH.
“Southern Maine has consistently seen a threefold to fourfold increase in hotel and Airbnb prices during the peak season, allowing real estate investors to capitalize on a lucrative three-month window and cover their expenses for the remainder of the year. Our collaboration with Restoration Hardware is strategically designed to enhance the marketability of our units, enabling owners to command premium rates and attract a high-end clientele on short term and long term basis,” McClure commented.
Unit prices will range from $399,000 for 1BR and 1 BTH to $720,000 for larger 2BR and 2Bths situated on the top floor and corner units. Adding the RH Design package will range from $45K-$60K, but will allow unit owners the ability to increase their rental rates 15% or more than they would have gotten otherwise, increasing profitability and paying for itself in the long run.
“Paula Wallem and the RH team have done an exemplary job designing out this package with furniture that will handle extremely well as a rental while giving off the Restoration Hardware look and appeal that higher-end renters appreciate. I will also note that we are selling these design packages at close to our cost, with a goal of maximizing the profitability for our unit buyers,” McClure added.
If this takes off as McClure hopes it will, does he envision replicating it on his other projects, like his fully approved, $40 million, 130 unit market rate apartment project The Azul, in El Paso, Texas?
“We shall see. RH is a great company with great quality and design, and if this business model works here I can’t see us not replicating in our future projects,” McClure ended.
As The Mark at Cumberland Foreside progresses towards completion, the collaborative partnership with Restoration Hardware adds an exciting dimension, solidifying the development’s commitment to providing a unique and sophisticated living experience for its future residents.
GenX Capital Partners, LLC is real estate finance and development company that closes on average $100+ million a year in financing for clients and has more than $50+ million in development at any one time.
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