INTERVIEW: PAUL SCIALLA
As an asset class, real estate is worth US$150tn and we want to combine that with one of the fastest growing industries in the world – the US$2tn health and wellness sector
free access to the Cleveland Clinic’s sleep, stress and nutrition programmes which are delivered online over six months and usually cost upwards of US$140 (€103, £85). Perhaps most interesting for spa operators, is that the new standards pay just as much attention to emotional and psychological wellbeing as physical health. Complementary elements such as aromatherapy, acupressure and sound-wave therapy have been incorpo- rated because they’ve been proven to work. Scialla and his twin brother, who’s also a partner in Delos, converted their own home to trial the Well Building Standard three years ago and have seen the benefits first hand.
“Since completing the renovation, my energy levels are through the roof, I’ve rarely been sick and my sleeping patterns have never been better,” says Scialla. “I’m a healthier person.”
WIDE APPEAL Individually some of the amenities included in the Well Building Standard aren’t neces- sarily groundbreaking, particularly if you’re already in the spa industry. However, it’s the way Delos has packaged them that’s captured the attention of US media – which has responded with everything from articles in the LA Times and The Wall Street Journal, to coverage on CNN, Bloomberg and CNBC.
Paul Scialla: Favourites
Book: A Concise History of the World by JM Roberts Film: Gladiator Cuisine: Italian Best way to relax: sleep Spa: The Peninsula Spa NYC Treatment: massage Best advice: dream huge, then triple that – that’s my own saying Most admire: my parents
DiCaprio joined the Delos advisory board in November and is also an investor in the fi rm
Even Bill Clinton is an advocate. “These healthy building standards will literally change the way we live and work in a very positive way,” said the former US president at the 2012 annual conference for the Clinton Global Initiative (CGI), which brings together global leaders to create and implement inno- vative solutions to some of the world’s most pressing challenges. Interestingly, Delos is also a member of the CGI. Delos faces two significant challenges.
Firstly, the price of its ‘well buildings’ could be a barrier for growth, given that the 66 East 11th Street residences range from US$16m- US$50m (€11.8m-€37m, £9.7m-£30.2m). Secondly, wellness real estate hasn’t taken off as well as anticipated in the past – a number of residential spa communities, including Canyon Ranch Living in Washington DC and Chicago and Pritikin Living in Houston, have struggled (see SB11/1 p30). However, Scialla is confi dent that neither issue gives cause for concern. He says that Delos’ developments are signifi cantly different, saying “A lot of these
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residential developments anchored the real estate with a great spa, but they didn’t intro- duce those elements into the homes or rooms.” He also feels the market has changed. It’s no
longer just baby boomers who are interested in longevity and quality of life in later years.
“We carried out extensive demographic stud- ies early on to assess our target categories, demand and potential premiums,” he says.
“We found that what we were offering appealed, and had significant value, to every single person regardless of gender, age or income level. It was very clear to us that more people today are focused on health and wellness.” Of the cost he says that US$4,000 (€2,950,
£2,400) per square foot “is not expensive based on current New York City real estate prices. Plus, when you think about having a home that’s working on your body 24 hours a day just by living in it, we think it’s worth the price”. Scialla also remains adamant that Delos isn’t just focused on luxury residential projects. The company has just certified its fi rst wellness offi ces at the 46,000sq ft
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