Unfortunately I have to start this week's blog with some very sad news. A local park city skier, "Speedy" Jaret Peterson tragically took his life on Monday. Speedy grew up in Park City, won a silver medal at the Vancouver Olympics in freestyle and like so many others, lost his battle with alcoholism and depression. Speedy will be missed by all and hopefully there is a lesson to be learned here.
On a much brighter note, the town is absolutely bustling with activity. Walking around Main Street, the shops are full, the restaurants are full and everyone seems to be in a good mood. Could there be a correlation between the oppressive heat wave the rest of the country is seeing and our beautiful mountain weather? IF you're reading this while living anywhere in the Midwest or Eastern US, my full intent is to make you jealous by telling you our daytime temps are in the high 70s to low 80s, with nighttime temps in the 50s and 60s. Visitors might think that we live here for the winters and skiing, but it's really the summers. They are so beautiful!
Showing posts with label Promontory. Show all posts
Showing posts with label Promontory. Show all posts
Friday, July 29, 2011
Thursday, June 25, 2009
Western Mountain Resorts
This past week I hosted a conference for real estate agents of the western ski resort communities in Jackson Hole Wyoming. We had representatives from Sun Valley, Idaho, McCall, Idaho, Park City, Utah, Vail, Colorado, Breckenridge, Colorado, Steamboat Springs, Colorado, Winter Park, Colorado, Jackson Hole, Wyoming and Lake Tahoe, California. As president of the Western Mountain Resort Alliance my job among others was to moderate a panel discussion of all the resorts. Questions were asked of each representative about their current real estate markets, sales activity, prices, activity on new developments, and sales activity in their golf course communities.
While there were some striking differences between the resorts, the overall market activity was very similar. All of the resorts reported that sales numbers and dollar volume was down around 45-50% comparing this past ski season to the previous ski season. The big differences were apparent in average price and price per square foot in homes and condos sold. Vail grabbed everyone’s attention with new slope side condominium development’s selling for up to $2900 per square foot while Winter Park, CO said their new slope side development’s are selling for around $500 per square foot. Park City falls somewhere in the middle with new slope side development’s selling around a $1000 per square foot. However, Park City does show a penthouse condo in the Empire Pass area of Deer Valley under contract/pending at $1900 per square foot.
McCall, ID, home of Tamarack ski resort, reported that their prices have dropped low enough that nearly every property sold is receiving multiple offers. Several of the other resorts, particularly Breckenridge, are also experiencing a return of multiple offers being written for exceptional properties. Pretty much every resort is experiencing signs that the real estate market is turning for the better.
Near unanimous were the resorts reporting that home sales under $1.5 million and condo sales under $700,000 were the strongest parts of their market. Also unanimous was that vacant land sales were the weakest. The lack of land sales can be attributed to a lack of vacant land near the resorts and the unwillingness of lenders to make loans for undeveloped land.
We discussed at length how golf course communities were doing at each resort. Nearly unanimous was that vacant land and home sales in private golf course communities was extremely slow. Everyone felt that in the late 1990’s and early 2000’s too many golf course communities were developed and that there was just not enough demand for all the supply that came on the market. It appears to us that the resorts, in an effort to become a Four Seasons resort rather than just a winter resort, developed too many golf course communities. For instance, in the Vail area which encompasses an area from the Vail valley and continues west along I70 for about 70 miles there are now 13 golf courses and many of those are real estate communities also. That number got everyone’s attention until Park City announced that we now have 14 golf course communities in and around the immediate area. Jackson Hole only has 5 golf course communities. North Lake Tahoe has 4 golf course communities, all put in many years ago and now North Lake Tahoe is enforcing a moratorium on any new golf course communities. As a result the North Lake Tahoe communities have sold out of all developer product and re-sales are fairly strong. Perhaps the rest of the Western Resorts should pay attention to this lesson.
In final comments almost all of the representatives were optimistic that the increased activity we have seen in the last couple months will continue through the summer months and in to next year.
While there were some striking differences between the resorts, the overall market activity was very similar. All of the resorts reported that sales numbers and dollar volume was down around 45-50% comparing this past ski season to the previous ski season. The big differences were apparent in average price and price per square foot in homes and condos sold. Vail grabbed everyone’s attention with new slope side condominium development’s selling for up to $2900 per square foot while Winter Park, CO said their new slope side development’s are selling for around $500 per square foot. Park City falls somewhere in the middle with new slope side development’s selling around a $1000 per square foot. However, Park City does show a penthouse condo in the Empire Pass area of Deer Valley under contract/pending at $1900 per square foot.
McCall, ID, home of Tamarack ski resort, reported that their prices have dropped low enough that nearly every property sold is receiving multiple offers. Several of the other resorts, particularly Breckenridge, are also experiencing a return of multiple offers being written for exceptional properties. Pretty much every resort is experiencing signs that the real estate market is turning for the better.
Near unanimous were the resorts reporting that home sales under $1.5 million and condo sales under $700,000 were the strongest parts of their market. Also unanimous was that vacant land sales were the weakest. The lack of land sales can be attributed to a lack of vacant land near the resorts and the unwillingness of lenders to make loans for undeveloped land.
We discussed at length how golf course communities were doing at each resort. Nearly unanimous was that vacant land and home sales in private golf course communities was extremely slow. Everyone felt that in the late 1990’s and early 2000’s too many golf course communities were developed and that there was just not enough demand for all the supply that came on the market. It appears to us that the resorts, in an effort to become a Four Seasons resort rather than just a winter resort, developed too many golf course communities. For instance, in the Vail area which encompasses an area from the Vail valley and continues west along I70 for about 70 miles there are now 13 golf courses and many of those are real estate communities also. That number got everyone’s attention until Park City announced that we now have 14 golf course communities in and around the immediate area. Jackson Hole only has 5 golf course communities. North Lake Tahoe has 4 golf course communities, all put in many years ago and now North Lake Tahoe is enforcing a moratorium on any new golf course communities. As a result the North Lake Tahoe communities have sold out of all developer product and re-sales are fairly strong. Perhaps the rest of the Western Resorts should pay attention to this lesson.
In final comments almost all of the representatives were optimistic that the increased activity we have seen in the last couple months will continue through the summer months and in to next year.
Tuesday, August 19, 2008
Jazz Fest
This weekend is the annual Jazz Festival at Deer Valley. (http://www.parkcityjazz.org/) The headline acts for this year’s festival are Blues Traveler, Big Bad Vodoo Daddy and the Rippingtons. This three day event runs Friday through Sunday at the amphitheatre in Deer Valley. Also performing at the festival will be the Park City High School Jazz Band. The Park City High School Jazz Band is quite well know and has won numerous awards throughout the state and the country. The outdoor amphitheatre in Deer Valley is a terrific venue for concerts, located at the base of the resort with excellent views of the local mountains. As you can see from the headline acts, the festival is not a pure jazz festival, but a combination of jazz and blues. If you are an aficionado of jazz or blues, this annual event should be on your calendar of must “to dos”.The various golf course communities around the Park City area continue to flourish. Last weekend I was fortunate enough to have an opportunity to play at the Glenwild Golf Course, designed by Tom Fazio. The Glenwild course is an 18-hole championship course, set in a beautiful valley just to the north of Park City, with spectacular views of the Wasatch Range. The clubhouse at Glenwild is arguably the most beautiful of all the clubhouses around the area, with outdoor dining overlooking the golf course with views of all three Park City ski resorts. While Glenwild does offer a pool and tennis courts, the emphasis is certainly on the golf. Our Glenwild is a small community which is just about completely sold out, offering only re-sale lots and custom homes.
Last week I was at the Promontory Golf Course showing homes to a prospective buyer. Promontory has two golf courses, a Pete Dye Championship Course and the newly completed Jack Nicklaus Signature Course. I have not had the opportunity to play the Nicklaus Course yet, but word has it that is probably the best course in the state. Promontory differs from Glenwild in that, while golf is certainly the major attraction, it is not their only focus. Promontory has a wonderful spa/clubhouse with an indoor/outdoor pool adjoining a Children’s Center and a Members Clubhouse. Promontory also features an equestrian center, tennis courts and many miles of hiking/biking trails. Come winter the center court of the tennis facility converts to an ice skating rink and the hiking/biking trails convert to cross country ski trails. Promontory has made a conscious effort to offer recreational activities for the entire family. Promontory expects to start its third course this next summer which will be an Executive Course.
Tuhaye, one of the newest courses in town, features a Mark O’Meara Signature Course and is situated just to the east of Park City. Along with the golf pro shop, Tuhaye has completed it spa and fitness center with an outdoor pool and poolside café. This past Sunday I was fortunate enough to spend the afternoon at the Tuhaye pool overlooking the golf course with views up to Deer Valley. We decided that the views from the Tuhaye pool are the best of the three resort spas. Next in works for Tuhaye will be the Members Clubhouse and a 9-hole Executive Course. Tuhaye also has plans for an 18-hole Fazio Championship Course.
Just under way in the neighboring town of Heber is a new golf course community called Red Ledges. Red Ledges is also featuring a Nicklaus Signature Course and offers incredible views of Mt. Timpanogos. The course is well under way and at least 9 holes should be open by next summer. Currently Red Ledges is selling home sites and will soon be offering patio homes for sale as well.
As with many ski resort towns, Park City is going through a change from strictly a ski town to a Four-Seasons Resort and Golf Mecca. If you are a golf enthusiast, high altitude golf is extremely enjoyable as the thinner air allows us to feel like John Daly. The local courses should be open well into October so make plans to come out and visit us and enjoy the beautiful fall weather.
Wednesday, July 9, 2008
I’ve moved!
The big news here in Park City this week is that I have left Sotheby’s Real Estate and moved to Prudential Utah. As with any change, there are always a variety of reasons, but one of the most compelling for me is that Prudential has by far and away the largest percentage of the market. This is a move that I feel will benefit both my Sellers and Buyers. I am currently located in the Prudential office on historic Main Street with many of the top agents from Prudential. The energy level and excitement are contagious and I look forward to this next stage in my career.
This past weekend was 4th of July and the Park City parade was as quaint and fabulous as always. Where else but in a western mountain ski town can you have a float featuring a real snowman made from snow still up on the ski resorts? The parade was followed by festivities in City Park, music, games, rugby, volleyball and all that is traditional for a 4th of July celebration. The day’s activities were capped by a spectacular fireworks display shot from the base of the Park City Resort against the mountains.
Here is a link to an interesting article that I found in Travel + Leisure GOLF Digest. It is an article from a writer who has been here in the winter time but came out last summer and played several of our beautiful mountain golf courses. Enjoy the article, and if you are a golfer I hope this will entice you visit Park City in the summer, as we all know how spectacular the winter is. If you are lucky enough to visit Park City this summer, please stop in the Prudential office at the bottom of Main Street and say “hello”.
Here is a link to an interesting article that I found in Travel + Leisure GOLF Digest. It is an article from a writer who has been here in the winter time but came out last summer and played several of our beautiful mountain golf courses. Enjoy the article, and if you are a golfer I hope this will entice you visit Park City in the summer, as we all know how spectacular the winter is. If you are lucky enough to visit Park City this summer, please stop in the Prudential office at the bottom of Main Street and say “hello”.
Friday, May 9, 2008
Spring Market Update
Spring has arrived and the snow is (very) slowly giving way to green grass and warmer days. May is an excellent time to reflect on the past real estate season and the outlook for the remainder of the year.
Market Analysis
This past winter was one of the most interesting that I have seen in my 19 years of real estate. Record snowfall brought incredible ski conditions, a record number of visitors to town, and the fewest number of real estate sales in over 5 years. It’s not that visitors did not want to own real estate here, but the constant barrage of negative press made buyers nervous, cautious, and wanting to wait to see what’s going to happen. Comparing the ski season, December 1, April 30 of this year to last year, here are some numbers: Number of Transactions for Single Family Homes is down 45%, and 44% for condos. Interestingly enough, during the same period the average sales price of a home went up 46% and the average sales price of condos rose 22%. In looking at the other destination ski resorts throughout the Rockies, I see that the same trend has occurred at the other resorts. This tells me that people continue to want vacation property and that our prices are still perceived as a good value. Whistler, in British Columbia, is the only resort in the west which reported an increase in number of condo sales (up 8%) and a 100% increase in sold price. This is understandable as Whistler is reaping the benefits of the upcoming 2010 Winter Olympics and the favorable exchange rate between the US dollar and the Canadian dollar.
Some specific areas of interest here in Park City are:
Old Town (including the Park City resort):
Single Family Homes were down 47% in number of sales (8 this year compared to 15 last year) and the average sales price was down 20 % ($1,376,000 compared to $1,712,000).
Lower Deer Valley:
Single Family Homes were down 71% (2 compared to 7) but up 7% in average sales price ($2,375,000 compared to $2,218,000).
Upper Deer Valley (Silver Lake):
The number of sales were off 43% (4 compared to 7) and the average sales price was down 2% ($5,411,000 compared to $5,507,000).
All of the areas within the city limits:
The number of home sales was off 26% (34 compared to 60) and the average sold price was down 3% ($2,419,000 compared to $2,500,000). This small decrease in sold price is reflective of resort markets where sellers generally do not have to sell, have the means to wait out a slowdown, and thus are not willing to drop their prices significantly.
For condominium sales:
Old Town (including Park City resort):
The number of sales was down 26% (54 compared to 73), but the average sold price was up 38% ($1,130,000 compared to $818,000). This is in large part due to the new Silver Strike project which was completed this winter.
Lower Deer Valley condos:
Number of sales were down 28% (13 compared to 18), and up 1% in average sales price ($1,195,000 to $1,188,000).
Upper Deer Valley:
Even in number of sales (11 compared to 12 last year), but average sales price was up 20% ($2,660,000 compared to $2,216,000).
For all areas within the city limits:
Condo sales were down 40% (108 compared to 180) and average sales price was up 24% ($1,331,000 compared to $1,075,000).
I frequently attend national real estate meetings where I make a point of speaking with agents from around the country. From my conversations, it appears that the resort real estate market is holding much stronger than many of the residential markets. Agents from the metropolitan non-resort areas for the most part are describing markets where the number of sales are down even more significantly than ours and sold prices are also significantly down.
From visitors that I spoke with and showed around this past winter it is very clear that they still want to buy here, will buy here, but are just looking for an increase in their comfort level. We saw this in 2001 and 2002 where terrorist attacks and wars created uncertain times, where buyers were also nervous and cautious about purchasing. In 2004 and 2005, confidence level returned and there was a pent-up demand for vacation properties throughout the West. At that time, all of the resorts experienced a frenzy of buying where properties were selling as fast as they came on the market, often with multiple offers. While no one can say when, I expect we will see something similar in the next couple of years. In 2007, many buyers that I had been working with for some time said to me, “Why didn’t you make me buy in 2005?!” In the next three years I expect that I will be hearing similar statements and that people who purchased during this downturn will be feeling very smug.
News on New Developments
Empire Pass at Deer Valley is moving forward. Last summer the second Arrowleaf building in Empire Pass was completed with all but one unit sold prior to completion. The Silver Strike condominium building is well under way and is expected to be completed early this summer. Last summer, the new Flagstaff condominium building broke ground and should be completed for the 2009/2010 ski season. The ski-in/ski-out homesites being built by Christopher Homes are under construction with two of the 18 homes pre-selling prior to completion. In addition nine lots in Red Cloud at the top of the mountain were released this winter and there were two sales in the Red Cloud subdivision, both well over $4 million.
Montage is a new luxury resort spa hotel under construction at the base of the Empire lift at Deer Valley. Completion is expected for sometime during the 2010/2011 ski season and we expect the first relase of condominiums to be late this summer or early this winter. The Montage will feature a 30,000 square foot spa, restaurants, and lounges. While no specifics have been announced as far as prices, floorplans, or sizes of units, we are expecting the first release to come out between $2,200 and $2,500 per foot. The Montage will certainly have the premier location of any of the resort hotel spas in Deer Valley and Park City. Watch for further updates as information becomes available.
The St. Regis Hotel in Deer Crest at Deer Valley is steadily progressing and about 65% sold out. Two units just sold this past week. The St. Regis will feature a spectacular slopeside pool, deck, and lounge area with ski access from the Deer Hollow ski run. There are only 25 units left with completion expected in early summer 2009.
Silver Star is a new development at the base of the Park City Resort, is ski-in/ski-out, and is a combination of condominium apartments, townhouses, and single family homes. The project is about 70% completed and was completely sold out prior to breaking ground. In addition to the residential community in Silver Star the developers have painstakingly chosen to preserve the mining heritage and have converted many of the original mine buildings into an artist colony which will be the home of next year’s Sundance Film Festival.
The big news at The Canyons is that earlier this winter, American Ski Corporation, the owner, dissolved, paving the way for the sale of the resort. There was a fierce battle between Vail Resorts and Talisker Corporation for the resort. Talisker is the developer of Empire Pass at Deer Valley and the Tuhaye golf community just outside of town. After several heated court battles, the courts have ruled that Talisker’s offer to purchase was legitimate and above board. This has paved the way for Talisker to purchase the resort and it is expected that they will close on the purchase as early as the end of May 2008. This is very good news for the Canyons, as it will bring a much-needed infusion of money, and energy back to the resort. In anticipation of this purchase, we saw good activity in an area called The Colony, a ski-in/ski-out home development adjoining the Canyons where six lots sold and two homes, one being a home listed for over $14,000,000 sold. When Talikser has completed the purchase of the Canyons and the news is released, I expect that there will be a flurry of activity for lots and homes in the Colony as well as the new condominium developments at the base of the Canyons Resort.
Very exciting news at the Canyons is that a new condominium project called Dakota has aligned itself with Golden Door Spas and the Waldorf-Astoria hotel chain. Bringing these two nationally known hospitality giants to the Canyons Resort speaks volumes about their confidence and where they see the future of the resort.
The Promontory golf club and home development is going through some rough times. Promontory opened up its second signature golf course last summer, a Jack Nicholas-designed championship course, but its two major creditors, Credit Suisse and Wells Fargo bank have forced the developer into a chapter 11 restructuring situation. It is felt that Promontory will emerge from this, be back in business, but most likely with a new owner and management team. In the meantime construction on their third championship golf course is on hold.
The Tuhaye golf course and community was quite active this winter in both lot sales and homes. Tuhaye has benefited from being a part of a unique club concept called the Talisker Club. The Talisker Club has combined golf amenities with ski amenities at Deer Valley, fishing, boating, and horseback riding. This club concept is the first of its kind which allows members the luxury of year-round activities, whereas clubs that have amenities just on a ski area or golf course only provide activities for a small part of the year. This is a very successful idea and from the number of inquiries I received last winter, it has been well received.
There is nothing that Park City loves more than real estate gossip. And the latest news here is that Jim Lewis has sold his company, Lewis, Wolcott & Dornbush Real Estate and the new owner has joined us with Sotheby’s International. Our new name is Summit Sotheby’s International Realty. While this of course does not change me or my relationship with any of my clients, it does bring the power of the Sotheby’s name to our marketing. The Sotheby’s International connections should bring quite a lot of marketing power and exposure to my sellers’ properties that LWD as an independent company could never afford to do. Combine the Sotheby’s name, direct flights from Paris to Salt Lake on Delta, a very favorable exchange rate between the euro and the dollar, I am anticipating an increase in foreign visitors and buyers, particularly from western Europe.
As we slowly move towards summer, it seems like winter will not let go. We are cautiously optimistic for real estate sales this summer and we have seen a flurry of activity this spring. We are all hoping that the economy rights itself and consumer confidence once again reemerges. In the meantime owners of property here in Park City are enjoying the use of their home or condo, both during the ski season as well as during the summer months.
Market Analysis
This past winter was one of the most interesting that I have seen in my 19 years of real estate. Record snowfall brought incredible ski conditions, a record number of visitors to town, and the fewest number of real estate sales in over 5 years. It’s not that visitors did not want to own real estate here, but the constant barrage of negative press made buyers nervous, cautious, and wanting to wait to see what’s going to happen. Comparing the ski season, December 1, April 30 of this year to last year, here are some numbers: Number of Transactions for Single Family Homes is down 45%, and 44% for condos. Interestingly enough, during the same period the average sales price of a home went up 46% and the average sales price of condos rose 22%. In looking at the other destination ski resorts throughout the Rockies, I see that the same trend has occurred at the other resorts. This tells me that people continue to want vacation property and that our prices are still perceived as a good value. Whistler, in British Columbia, is the only resort in the west which reported an increase in number of condo sales (up 8%) and a 100% increase in sold price. This is understandable as Whistler is reaping the benefits of the upcoming 2010 Winter Olympics and the favorable exchange rate between the US dollar and the Canadian dollar.
Some specific areas of interest here in Park City are:
Old Town (including the Park City resort):
Single Family Homes were down 47% in number of sales (8 this year compared to 15 last year) and the average sales price was down 20 % ($1,376,000 compared to $1,712,000).
Lower Deer Valley:
Single Family Homes were down 71% (2 compared to 7) but up 7% in average sales price ($2,375,000 compared to $2,218,000).
Upper Deer Valley (Silver Lake):
The number of sales were off 43% (4 compared to 7) and the average sales price was down 2% ($5,411,000 compared to $5,507,000).
All of the areas within the city limits:
The number of home sales was off 26% (34 compared to 60) and the average sold price was down 3% ($2,419,000 compared to $2,500,000). This small decrease in sold price is reflective of resort markets where sellers generally do not have to sell, have the means to wait out a slowdown, and thus are not willing to drop their prices significantly.
For condominium sales:
Old Town (including Park City resort):
The number of sales was down 26% (54 compared to 73), but the average sold price was up 38% ($1,130,000 compared to $818,000). This is in large part due to the new Silver Strike project which was completed this winter.
Lower Deer Valley condos:
Number of sales were down 28% (13 compared to 18), and up 1% in average sales price ($1,195,000 to $1,188,000).
Upper Deer Valley:
Even in number of sales (11 compared to 12 last year), but average sales price was up 20% ($2,660,000 compared to $2,216,000).
For all areas within the city limits:
Condo sales were down 40% (108 compared to 180) and average sales price was up 24% ($1,331,000 compared to $1,075,000).
I frequently attend national real estate meetings where I make a point of speaking with agents from around the country. From my conversations, it appears that the resort real estate market is holding much stronger than many of the residential markets. Agents from the metropolitan non-resort areas for the most part are describing markets where the number of sales are down even more significantly than ours and sold prices are also significantly down.
From visitors that I spoke with and showed around this past winter it is very clear that they still want to buy here, will buy here, but are just looking for an increase in their comfort level. We saw this in 2001 and 2002 where terrorist attacks and wars created uncertain times, where buyers were also nervous and cautious about purchasing. In 2004 and 2005, confidence level returned and there was a pent-up demand for vacation properties throughout the West. At that time, all of the resorts experienced a frenzy of buying where properties were selling as fast as they came on the market, often with multiple offers. While no one can say when, I expect we will see something similar in the next couple of years. In 2007, many buyers that I had been working with for some time said to me, “Why didn’t you make me buy in 2005?!” In the next three years I expect that I will be hearing similar statements and that people who purchased during this downturn will be feeling very smug.
News on New Developments
Empire Pass at Deer Valley is moving forward. Last summer the second Arrowleaf building in Empire Pass was completed with all but one unit sold prior to completion. The Silver Strike condominium building is well under way and is expected to be completed early this summer. Last summer, the new Flagstaff condominium building broke ground and should be completed for the 2009/2010 ski season. The ski-in/ski-out homesites being built by Christopher Homes are under construction with two of the 18 homes pre-selling prior to completion. In addition nine lots in Red Cloud at the top of the mountain were released this winter and there were two sales in the Red Cloud subdivision, both well over $4 million.
Montage is a new luxury resort spa hotel under construction at the base of the Empire lift at Deer Valley. Completion is expected for sometime during the 2010/2011 ski season and we expect the first relase of condominiums to be late this summer or early this winter. The Montage will feature a 30,000 square foot spa, restaurants, and lounges. While no specifics have been announced as far as prices, floorplans, or sizes of units, we are expecting the first release to come out between $2,200 and $2,500 per foot. The Montage will certainly have the premier location of any of the resort hotel spas in Deer Valley and Park City. Watch for further updates as information becomes available.
The St. Regis Hotel in Deer Crest at Deer Valley is steadily progressing and about 65% sold out. Two units just sold this past week. The St. Regis will feature a spectacular slopeside pool, deck, and lounge area with ski access from the Deer Hollow ski run. There are only 25 units left with completion expected in early summer 2009.
Silver Star is a new development at the base of the Park City Resort, is ski-in/ski-out, and is a combination of condominium apartments, townhouses, and single family homes. The project is about 70% completed and was completely sold out prior to breaking ground. In addition to the residential community in Silver Star the developers have painstakingly chosen to preserve the mining heritage and have converted many of the original mine buildings into an artist colony which will be the home of next year’s Sundance Film Festival.
The big news at The Canyons is that earlier this winter, American Ski Corporation, the owner, dissolved, paving the way for the sale of the resort. There was a fierce battle between Vail Resorts and Talisker Corporation for the resort. Talisker is the developer of Empire Pass at Deer Valley and the Tuhaye golf community just outside of town. After several heated court battles, the courts have ruled that Talisker’s offer to purchase was legitimate and above board. This has paved the way for Talisker to purchase the resort and it is expected that they will close on the purchase as early as the end of May 2008. This is very good news for the Canyons, as it will bring a much-needed infusion of money, and energy back to the resort. In anticipation of this purchase, we saw good activity in an area called The Colony, a ski-in/ski-out home development adjoining the Canyons where six lots sold and two homes, one being a home listed for over $14,000,000 sold. When Talikser has completed the purchase of the Canyons and the news is released, I expect that there will be a flurry of activity for lots and homes in the Colony as well as the new condominium developments at the base of the Canyons Resort.
Very exciting news at the Canyons is that a new condominium project called Dakota has aligned itself with Golden Door Spas and the Waldorf-Astoria hotel chain. Bringing these two nationally known hospitality giants to the Canyons Resort speaks volumes about their confidence and where they see the future of the resort.
The Promontory golf club and home development is going through some rough times. Promontory opened up its second signature golf course last summer, a Jack Nicholas-designed championship course, but its two major creditors, Credit Suisse and Wells Fargo bank have forced the developer into a chapter 11 restructuring situation. It is felt that Promontory will emerge from this, be back in business, but most likely with a new owner and management team. In the meantime construction on their third championship golf course is on hold.
The Tuhaye golf course and community was quite active this winter in both lot sales and homes. Tuhaye has benefited from being a part of a unique club concept called the Talisker Club. The Talisker Club has combined golf amenities with ski amenities at Deer Valley, fishing, boating, and horseback riding. This club concept is the first of its kind which allows members the luxury of year-round activities, whereas clubs that have amenities just on a ski area or golf course only provide activities for a small part of the year. This is a very successful idea and from the number of inquiries I received last winter, it has been well received.
There is nothing that Park City loves more than real estate gossip. And the latest news here is that Jim Lewis has sold his company, Lewis, Wolcott & Dornbush Real Estate and the new owner has joined us with Sotheby’s International. Our new name is Summit Sotheby’s International Realty. While this of course does not change me or my relationship with any of my clients, it does bring the power of the Sotheby’s name to our marketing. The Sotheby’s International connections should bring quite a lot of marketing power and exposure to my sellers’ properties that LWD as an independent company could never afford to do. Combine the Sotheby’s name, direct flights from Paris to Salt Lake on Delta, a very favorable exchange rate between the euro and the dollar, I am anticipating an increase in foreign visitors and buyers, particularly from western Europe.
As we slowly move towards summer, it seems like winter will not let go. We are cautiously optimistic for real estate sales this summer and we have seen a flurry of activity this spring. We are all hoping that the economy rights itself and consumer confidence once again reemerges. In the meantime owners of property here in Park City are enjoying the use of their home or condo, both during the ski season as well as during the summer months.
Tuesday, April 29, 2008
Golf Course News
With the snow slowly melting the local golf courses are gearing up for summer play. The Park City Golf Course along with the private golf courses of Glenwild, Promontory and Tuhaye are all hoping for a mid-May opening. Even though we continue to get snowstorms each week, the days in between the storms are getting progressively warmer and the courses are beginning to green up.
What will be very interesting this year is to see what happens with Promontory. Promontory is a very large golf course community with two championship courses and many homesites. Promontory is going through some financial struggles and trying to work out an amicable situation with its creditors. Earlier this year, Credit Suisse announced that it had taken over the operation of the community and amenities. Since that time Wells Fargo Bank, the second lien-holder has forced the Pivotal Group (which is the developer of the community) to file for chapter 11 bankruptcy which is allowing them to reorganize while still having capital to operate.
Glenwild Golf Course is in the enviable position of having been the first true golf course community built in the area. As a result, Glenwild has 90+% of its properties sold with the golf course and clubhouse seasoned and functioning smoothly.
Tuhaye, one of the newest courses, seems to be doing well, mostly as a result of its affiliation with Deer Valley Ski Resort. Talisker, the underlying developer, has created a unique club concept combining the golf course amenities with a clubhouse and dining facilities on the mountain at Deer Valley. This gives Talisker Club members a true year-round recreation program in ski country. I expect that this unique program will allow Talisker and the Tuhaye Golf Course to remain strong during these difficult times.
There are three new golf course communities underway in the surrounding areas and I will be very interested to see how they do. If we look at how many available lots there are combined in all the communities that are either built or under construction we have about a 30-year supply of inventory. As a result, I do not expect that all the golf communities will survive. As with all real estate purchases, this emphasizes the importance of using a local and knowledgeable real estate agent to guide you in the right direction.
What will be very interesting this year is to see what happens with Promontory. Promontory is a very large golf course community with two championship courses and many homesites. Promontory is going through some financial struggles and trying to work out an amicable situation with its creditors. Earlier this year, Credit Suisse announced that it had taken over the operation of the community and amenities. Since that time Wells Fargo Bank, the second lien-holder has forced the Pivotal Group (which is the developer of the community) to file for chapter 11 bankruptcy which is allowing them to reorganize while still having capital to operate.
Glenwild Golf Course is in the enviable position of having been the first true golf course community built in the area. As a result, Glenwild has 90+% of its properties sold with the golf course and clubhouse seasoned and functioning smoothly.
Tuhaye, one of the newest courses, seems to be doing well, mostly as a result of its affiliation with Deer Valley Ski Resort. Talisker, the underlying developer, has created a unique club concept combining the golf course amenities with a clubhouse and dining facilities on the mountain at Deer Valley. This gives Talisker Club members a true year-round recreation program in ski country. I expect that this unique program will allow Talisker and the Tuhaye Golf Course to remain strong during these difficult times.
There are three new golf course communities underway in the surrounding areas and I will be very interested to see how they do. If we look at how many available lots there are combined in all the communities that are either built or under construction we have about a 30-year supply of inventory. As a result, I do not expect that all the golf communities will survive. As with all real estate purchases, this emphasizes the importance of using a local and knowledgeable real estate agent to guide you in the right direction.
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