The continued refinement in the Luxury residential market indicates that Luxury Residential Properties will be a key factor in the growth of the housing market. The expansion of the baby boomer population and the ongoing transfer of wealth to younger generations are creating an expanding demand in both urban Enclaves as well as second home/investment property.

Behind that straightforward description is the true essence of the company: a unique vision that sees possibilities unimagined by other developers, a driving passion to always exceed expectations, and a powerful commitment to create unified places that improve people's lives.

Investing in Urban Enclaves like buying a luxury dwelling in close proximity to a questionable neighborhood may be a risky investment, but Dolce & Deluca is taking that risk because, increasingly, the potential returns are undeniably attractive.

In many cities, enclaves bordering transitional areas are historic districts that have undergone extensive renovations over the past decade. Landmark status has boosted the prestige of these neighborhoods-and afforded Dolce & Deluca the added benefit of tax credits.

In urban areas, such neighborhoods are not unusual: Multimillion-dollar luxury homes with perfectly manicured lawns exist in close proximity to neglected neighborhoods and abandoned lots. As the demand for housing outpaces supply, many of these surrounding low-income areas are being rehabilitated as well.

There is no guarantee that marginal areas bordering upscale neighborhoods will improve over time, but there are signs that potential buyers can look for to help them determine if they are making a wise investment.

But as demand increases, Dolce & Deluca may have to be more discriminating in our choices. The three factors that we look for are areas adjacent to an urban enclave: the arts community, an alternative lifestyle community and the presence of young, urban pioneers.

1. Artist studios and lofts populate the first type of neighborhood, attracting trendsetting young people, as well as edgy galleries and unusual shops. Museums also characterize this type of neighborhood.

2. An alternative lifestyle community can also serve as a barometer for the market.

3. The third group of pioneers consists of young professionals, either single or married without children, who are moving into blighted areas and restoring old houses.