Friday, January 12, 2007
Steamboat real estate booming. 2006 area sales a record; new ski resort owner may lift market even more
By Joanne Kelley, Rocky Mountain News December 20, 2006
Steamboat Springs and the surrounding area have posted a record $1 billion in real estate sales even before the year ends, with talk about a potential new ski resort owner helping buoy an already strong market.
By the end of November, total sales in Routt County exceeded $1.023 billion, outstripping the roughly $886 million in sales for all of the previous year. A whirl of development projects - both downtown and at the base of Steamboat Ski Resort - helps account for some of the interest.
"The ski area sale is a big deal, but it's not the only show in town," said Jon Wade, a broker and owner of Colorado Group Realty in Steamboat.
Still, rampant speculation about the deal - the ski area's parent announced the sale of the resort to Intrawest on Tuesday - has helped boost prices for properties in the otherwise slow sales period in November and December.
While the number of properties that sold in November was only a few more than in the same month last year, the dollar volume soared 83 percent, said Bruce Carta, a statistician with Steamboat's Land Title Guarantee Co., which analyzes the county data.
The relative affordability of Steamboat vs. other major ski resorts also has helped drive interest.
"Steamboat probably seems like a fairly good deal right now," said Tom Leeson, the city's planning director.
Redevelopment projects in the downtown area and by the slopes also have been a major factor behind the boom.
"They see change coming on the horizon at Steamboat," Carta said about recent buyers.
Roughly a half-dozen mixed-use developments - with condos, commercial space and restaurants - are in the works for the city itself. And the long-neglected base of the ski area also has been a target of major overhaul projects.
A package of properties that includes the Steamboat Sheraton Hotel has been the object of intense bidding by prospective buyers seeking to redevelop aging lodging facilities in prime locations.
Steamboat Springs and the surrounding area have posted a record $1 billion in real estate sales even before the year ends, with talk about a potential new ski resort owner helping buoy an already strong market.
By the end of November, total sales in Routt County exceeded $1.023 billion, outstripping the roughly $886 million in sales for all of the previous year. A whirl of development projects - both downtown and at the base of Steamboat Ski Resort - helps account for some of the interest.
"The ski area sale is a big deal, but it's not the only show in town," said Jon Wade, a broker and owner of Colorado Group Realty in Steamboat.
Still, rampant speculation about the deal - the ski area's parent announced the sale of the resort to Intrawest on Tuesday - has helped boost prices for properties in the otherwise slow sales period in November and December.
While the number of properties that sold in November was only a few more than in the same month last year, the dollar volume soared 83 percent, said Bruce Carta, a statistician with Steamboat's Land Title Guarantee Co., which analyzes the county data.
The relative affordability of Steamboat vs. other major ski resorts also has helped drive interest.
"Steamboat probably seems like a fairly good deal right now," said Tom Leeson, the city's planning director.
Redevelopment projects in the downtown area and by the slopes also have been a major factor behind the boom.
"They see change coming on the horizon at Steamboat," Carta said about recent buyers.
Roughly a half-dozen mixed-use developments - with condos, commercial space and restaurants - are in the works for the city itself. And the long-neglected base of the ski area also has been a target of major overhaul projects.
A package of properties that includes the Steamboat Sheraton Hotel has been the object of intense bidding by prospective buyers seeking to redevelop aging lodging facilities in prime locations.
Veteran ski industry owner, operator buys Steamboat
Steamboat Pilot newspaper article 12/20/06
Steamboat Springs — The Steamboat Ski Area is being purchased by a veteran ski resort developer and operator with access to significant financial resources.
Intrawest announced Tuesday that it has reached an agreement to buy Steamboat Ski and Resort Corp. and its related assets from American Skiing Co. for $265 million. The deal is expected to close in late March.
Intrawest president and chief operating officer Alex Wasilov said he was as drawn to the Steamboat community as he was to the ski area.
“The town environment in Steamboat is what attracts people there,” he said Tuesday from Intrawest headquarters in Vancouver, British Columbia. “It is the asset that differentiates it from other resorts, so we are investing as much into our relationship with the community and the town as we are with the assets that we are purchasing.”
Wasilov said it is too early to say what sort of improvements or changes Intrawest might make at Steamboat. Those announcements will come once the sale has closed.
“We don’t have a definitive plan that we can talk about now,” Wasilov said. “I think traditionally, though you would look at a company like Intrawest and assess how we manage our other resorts and could assume that we would make appropriate investments to create demand and enhance the experience.”
Intrawest recently expanded the skiable terrain at Whistler Blackcomb, its largest resort. A new $9.2 million lift opened at the resort last weekend, which adds 1,000 acres to the ski area and brings the total terrain to 8,100 acres.
“Because (American Skiing Co.) has not invested significantly in Steamboat ski resort improvements over the years, that leaves it open for Intrawest to make some improvements in the maintenance and in capital,” said Rob Perlman, president and CEO of Colorado Ski Country USA.
Steamboat would be one of Intrawest’s largest ski resorts with almost 3,000 acres of skiable terrain.
Intrawest has interests in 10 North American ski resorts. It owns Copper Mountain and manages Winter Park, which is owned by the city and county of Denver.
“We believe we are affiliating ourselves with an incredible consumer base in our industry,” Wasilov said. “We’re betting on the fact that demand will not only sustain itself, but with our involvement and our investment in the mountain and the community, that we will be able to grow the business over time.”
Intrawest owns other travel businesses and resorts not related to skiing. Real estate development complements its resort operations.
“We love to see the two work together, but in every location, it’s different in terms of how much real estate development is there,” Wasilov said. “So, from our perspective, we like to see both of those parts of our business stand on their own.
Wasilov said the development potential at Steamboat is somewhat “restrictive” because of the lack of land. “We’re not acquiring Steamboat for the redevelopment opportunity,” Wasilov said. “We’re really acquiring Steamboat because of its mountain operations business and its ski business.”
The Sheraton Steamboat Resort property remains for sale, and many had speculated that whoever bought the ski area would also buy the property, which includes the 315-room Sheraton hotel, Ski Time Square commercial buildings and Thunderhead Lodge.
“We’re certainly aware of it, and we have looked at it, but it’s premature for us to comment on whether or not we are going to move forward in that area or not,” Wasilov said.
From a resort management standpoint, not much has changed since Intrawest was acquired by the New York-based Fortress Investment Group for $2.8 billion in October. The acquisition meant Intrawest had more money at its disposal to invest in its resorts, but no grand plans have been released. That is unless you count the acquisition of the Steamboat Ski Area.
“If anybody was in doubt about Fortress’ seriousness about being in the ski business, they should not be in doubt any longer,” said Mike Berry, president of the National Ski Areas Association. “At the end of the day, it bodes well for Steamboat. They will probably address some of the issues that everybody in this community wants to be addressed, whether it is capital improvements or other areas the community wants improved.”
Wasilov said Intrawest and Fortress plan to hold on to Steamboat “indefinitely,” and that the acquisition is a long-term investment.
“The growth in the industry has been sufficiently powerful that it makes sense for them to invest in companies that have real assets and generate real positive cash flow,” Berry said. “That’s what investors are looking for.”
Steamboat Springs — The Steamboat Ski Area is being purchased by a veteran ski resort developer and operator with access to significant financial resources.
Intrawest announced Tuesday that it has reached an agreement to buy Steamboat Ski and Resort Corp. and its related assets from American Skiing Co. for $265 million. The deal is expected to close in late March.
Intrawest president and chief operating officer Alex Wasilov said he was as drawn to the Steamboat community as he was to the ski area.
“The town environment in Steamboat is what attracts people there,” he said Tuesday from Intrawest headquarters in Vancouver, British Columbia. “It is the asset that differentiates it from other resorts, so we are investing as much into our relationship with the community and the town as we are with the assets that we are purchasing.”
Wasilov said it is too early to say what sort of improvements or changes Intrawest might make at Steamboat. Those announcements will come once the sale has closed.
“We don’t have a definitive plan that we can talk about now,” Wasilov said. “I think traditionally, though you would look at a company like Intrawest and assess how we manage our other resorts and could assume that we would make appropriate investments to create demand and enhance the experience.”
Intrawest recently expanded the skiable terrain at Whistler Blackcomb, its largest resort. A new $9.2 million lift opened at the resort last weekend, which adds 1,000 acres to the ski area and brings the total terrain to 8,100 acres.
“Because (American Skiing Co.) has not invested significantly in Steamboat ski resort improvements over the years, that leaves it open for Intrawest to make some improvements in the maintenance and in capital,” said Rob Perlman, president and CEO of Colorado Ski Country USA.
Steamboat would be one of Intrawest’s largest ski resorts with almost 3,000 acres of skiable terrain.
Intrawest has interests in 10 North American ski resorts. It owns Copper Mountain and manages Winter Park, which is owned by the city and county of Denver.
“We believe we are affiliating ourselves with an incredible consumer base in our industry,” Wasilov said. “We’re betting on the fact that demand will not only sustain itself, but with our involvement and our investment in the mountain and the community, that we will be able to grow the business over time.”
Intrawest owns other travel businesses and resorts not related to skiing. Real estate development complements its resort operations.
“We love to see the two work together, but in every location, it’s different in terms of how much real estate development is there,” Wasilov said. “So, from our perspective, we like to see both of those parts of our business stand on their own.
Wasilov said the development potential at Steamboat is somewhat “restrictive” because of the lack of land. “We’re not acquiring Steamboat for the redevelopment opportunity,” Wasilov said. “We’re really acquiring Steamboat because of its mountain operations business and its ski business.”
The Sheraton Steamboat Resort property remains for sale, and many had speculated that whoever bought the ski area would also buy the property, which includes the 315-room Sheraton hotel, Ski Time Square commercial buildings and Thunderhead Lodge.
“We’re certainly aware of it, and we have looked at it, but it’s premature for us to comment on whether or not we are going to move forward in that area or not,” Wasilov said.
From a resort management standpoint, not much has changed since Intrawest was acquired by the New York-based Fortress Investment Group for $2.8 billion in October. The acquisition meant Intrawest had more money at its disposal to invest in its resorts, but no grand plans have been released. That is unless you count the acquisition of the Steamboat Ski Area.
“If anybody was in doubt about Fortress’ seriousness about being in the ski business, they should not be in doubt any longer,” said Mike Berry, president of the National Ski Areas Association. “At the end of the day, it bodes well for Steamboat. They will probably address some of the issues that everybody in this community wants to be addressed, whether it is capital improvements or other areas the community wants improved.”
Wasilov said Intrawest and Fortress plan to hold on to Steamboat “indefinitely,” and that the acquisition is a long-term investment.
“The growth in the industry has been sufficiently powerful that it makes sense for them to invest in companies that have real assets and generate real positive cash flow,” Berry said. “That’s what investors are looking for.”
Ski Area Sale Produces Winter Heat
Article taken from the Steambaot Pilot December 24, 2006
Steamboat Springs — Some of Steamboat’s most active Realtors and developers said the announcement that the Steamboat Ski and Resort Corp. is under contract to Intrawest for $265 million will simply further enhance a burgeoning market.
“It will put petrol onto a large and already hot fire,” Michael Hurley said. “It was already burning. It’s just going to go quicker, faster and hotter.”
Fortress Investment Group is funding the ski area purchase to add Steamboat to the portfolio of Intrawest, which Fortress bought in October. The sale of the ski area is expected to close by the end of March.
Hurley has overseen multiple phases of the Trappeur’s Crossing condominium project at Village Drive and Medicine Springs Drive, less than half a mile from the Steamboat gondola.
Hurley is selling condominiums at an average of $800,000 each even as construction at Emerald Lodge continues. Of the 32 condos, seven are available. Just last week, he filed an application with the city of Steamboat Springs to build 32 more units in the sixth and final phase of the project.
His comments about the hot market aside, Hurley is convinced that sales of real estate in the Steamboat market would have continued at a brisk pace absent the ski area’s announcement.
“Personally, I think the fundamentals of the real estate market are such that regardless of Intrawest coming here, the market was already positive, he said. “We would have seen great growth over the next 13 months, just based on supply and demand.”
Jim Cook of Colorado Group Realty concurred that real estate activity in Steamboat Springs and the Yampa Valley shapes its own course independent of ski area ownership. But the announced deal will help, he said.
“You can’t say this isn’t great news for the base area,” Cook said. “American Skiing Co. has a lot of good people here, but they had no money to spend. This is going to be encouragement for projects already on the board.”
Cook is actively involved in several major redevelopment projects in downtown Steamboat Springs.
“It isn’t skiing that is bringing people here to buy homes,” Cook said. “We live in a beautiful place. That’s what will drive it. The ski area is an amenity.”
Pam Vanatta of Prudential Steamboat Realty disagreed.
“I think it validates how important the ski area is,” she said. “We’ve all known what a great ski mountain this is. With Intrawest’s reputation, now, the whole world is going to know it. I think it’s only going to bring a whole lot more people here who will feel the same way.”
Ken Gold of ReMax Steamboat believes Intrawest’s track record of designing and building the best terrain parks in the business at Copper Mountain, Whistler, B.C., and Mammoth Mountain Ski Area in California, could boost tourism and interest in second homes here. If teenagers in a family influence the choice of vacation destinations, the quality of terrain parks rule and any Intrawest upgrades to Steamboat’s parks would be a benefit, he said.
Vanatta and Cook are closer in their view on how Intrawest can update the experience on Mount Werner.
“Everyone’s excited because there’s an expectation they’ll be bringing it up to 2007,” Vanatta said.
Cook said uncertainty about the financial condition of the current ownership is a remark that “rolls off the tongues of a lot of buyers.” A change to Intrawest ownership would defray that caution, he added.
Longtime Steamboat Realtor Steve Downs of Steamboat Village Brokers saw an instant response to news of the sale after forwarding newspaper
accounts to associates and clients in other states.
“I sent the stories from the Steamboat Today and Denver Post to 150 people in my address book,” Downs said. “Within three hours, I had 20 responses.”
Downs believes Intrawest’s reputation will elevate the prestige of Steamboat.
“Our resort will be brought into a higher status, and Intrawest will bring in a higher level of product. You couldn’t have a better (ski area) buyer than Intrawest in terms of their success and track record,” he said.
Downs has been active in real estate here for 32 years and said he just enjoyed his best third and fourth quarters of the year both in terms of numbers of transactions and sales volume.
Vanatta gave a similar report.
“Our company was up 30 percent in dollar volume this year, and this was my personal best year ever,” she said.
Is there a scenario that could see the arrival of Intrawest in Steamboat redefining opportunity in the Steamboat market? Gold believes so. He said he is working with clients who have been looking at property in Breckenridge. They love Steamboat’s laid-back style but are drawn to Breckenridge on another level.
“They like Breckenridge because there’s been so much reinvestment there,” Gold said. With major projects such as One Steamboat Place and Wildhorse Meadows just beginning to come on line, the prospect of reinvestment by Intrawest could help validate real estate prices of $800, $900 and $1,000 per square foot, he said.
“Because of Intrawest’s history with other resort areas, buyers could begin to see a new ground-floor opportunity.”
Gold is in the midst of developing Cimarron at Steamboat Townhomes, within walking distance of the ski slopes. They are still largely under construction, but already there have been re-sales with considerable appreciation realized. Of the 23 units, five are completed and closed at prices above $1 million, and there have been two re-sales in that group including one that was originally sold at $1 million and resold for $1.4 million. Among the 18 remaining units under construction, investors have resold four units at prices of $500 a square foot.
“If we had 20 more Cimarrons to sell, we’d probably bump the prices to $600 and $700 a square foot with the possibility of going to $800 a year further on,” Gold said.
Those kinds of increases in value translate to the entry level of Steamboat’s housing market, Gold said. Less than a mile from Cimarron, Gold is involved in Sunray Meadows condominiums, which represent entry-level product in today’s market. The price of those homes has recently escalated from $200 per square foot to $350 per square foot.
Downs has seen it all in Steamboat in 32 years. He can recall busing tables in restaurants and cleaning condos to augment his income. He urges longtime residents who are anxious about the pace of change in Steamboat to understand that failure to grow means stagnation or regression. Look at the remarkable community assets Steamboat is able to afford and carry on with life in a beautiful valley, he urged.
“The engine that runs every community is business,” Downs said. “We have an incredible medical facility, I was impressed with the community’s willingness to fund a new library. We have a vibrant arts community, look at the benefits (of the half-cent sales tax) for our schools.
“Growth always creates challenge and change. But if you stop change, then there’s a reversal. Would we all like to live in s sleepy little town with fabulous skiing? Probably. Life goes on.”
Steamboat Springs — Some of Steamboat’s most active Realtors and developers said the announcement that the Steamboat Ski and Resort Corp. is under contract to Intrawest for $265 million will simply further enhance a burgeoning market.
“It will put petrol onto a large and already hot fire,” Michael Hurley said. “It was already burning. It’s just going to go quicker, faster and hotter.”
Fortress Investment Group is funding the ski area purchase to add Steamboat to the portfolio of Intrawest, which Fortress bought in October. The sale of the ski area is expected to close by the end of March.
Hurley has overseen multiple phases of the Trappeur’s Crossing condominium project at Village Drive and Medicine Springs Drive, less than half a mile from the Steamboat gondola.
Hurley is selling condominiums at an average of $800,000 each even as construction at Emerald Lodge continues. Of the 32 condos, seven are available. Just last week, he filed an application with the city of Steamboat Springs to build 32 more units in the sixth and final phase of the project.
His comments about the hot market aside, Hurley is convinced that sales of real estate in the Steamboat market would have continued at a brisk pace absent the ski area’s announcement.
“Personally, I think the fundamentals of the real estate market are such that regardless of Intrawest coming here, the market was already positive, he said. “We would have seen great growth over the next 13 months, just based on supply and demand.”
Jim Cook of Colorado Group Realty concurred that real estate activity in Steamboat Springs and the Yampa Valley shapes its own course independent of ski area ownership. But the announced deal will help, he said.
“You can’t say this isn’t great news for the base area,” Cook said. “American Skiing Co. has a lot of good people here, but they had no money to spend. This is going to be encouragement for projects already on the board.”
Cook is actively involved in several major redevelopment projects in downtown Steamboat Springs.
“It isn’t skiing that is bringing people here to buy homes,” Cook said. “We live in a beautiful place. That’s what will drive it. The ski area is an amenity.”
Pam Vanatta of Prudential Steamboat Realty disagreed.
“I think it validates how important the ski area is,” she said. “We’ve all known what a great ski mountain this is. With Intrawest’s reputation, now, the whole world is going to know it. I think it’s only going to bring a whole lot more people here who will feel the same way.”
Ken Gold of ReMax Steamboat believes Intrawest’s track record of designing and building the best terrain parks in the business at Copper Mountain, Whistler, B.C., and Mammoth Mountain Ski Area in California, could boost tourism and interest in second homes here. If teenagers in a family influence the choice of vacation destinations, the quality of terrain parks rule and any Intrawest upgrades to Steamboat’s parks would be a benefit, he said.
Vanatta and Cook are closer in their view on how Intrawest can update the experience on Mount Werner.
“Everyone’s excited because there’s an expectation they’ll be bringing it up to 2007,” Vanatta said.
Cook said uncertainty about the financial condition of the current ownership is a remark that “rolls off the tongues of a lot of buyers.” A change to Intrawest ownership would defray that caution, he added.
Longtime Steamboat Realtor Steve Downs of Steamboat Village Brokers saw an instant response to news of the sale after forwarding newspaper
accounts to associates and clients in other states.
“I sent the stories from the Steamboat Today and Denver Post to 150 people in my address book,” Downs said. “Within three hours, I had 20 responses.”
Downs believes Intrawest’s reputation will elevate the prestige of Steamboat.
“Our resort will be brought into a higher status, and Intrawest will bring in a higher level of product. You couldn’t have a better (ski area) buyer than Intrawest in terms of their success and track record,” he said.
Downs has been active in real estate here for 32 years and said he just enjoyed his best third and fourth quarters of the year both in terms of numbers of transactions and sales volume.
Vanatta gave a similar report.
“Our company was up 30 percent in dollar volume this year, and this was my personal best year ever,” she said.
Is there a scenario that could see the arrival of Intrawest in Steamboat redefining opportunity in the Steamboat market? Gold believes so. He said he is working with clients who have been looking at property in Breckenridge. They love Steamboat’s laid-back style but are drawn to Breckenridge on another level.
“They like Breckenridge because there’s been so much reinvestment there,” Gold said. With major projects such as One Steamboat Place and Wildhorse Meadows just beginning to come on line, the prospect of reinvestment by Intrawest could help validate real estate prices of $800, $900 and $1,000 per square foot, he said.
“Because of Intrawest’s history with other resort areas, buyers could begin to see a new ground-floor opportunity.”
Gold is in the midst of developing Cimarron at Steamboat Townhomes, within walking distance of the ski slopes. They are still largely under construction, but already there have been re-sales with considerable appreciation realized. Of the 23 units, five are completed and closed at prices above $1 million, and there have been two re-sales in that group including one that was originally sold at $1 million and resold for $1.4 million. Among the 18 remaining units under construction, investors have resold four units at prices of $500 a square foot.
“If we had 20 more Cimarrons to sell, we’d probably bump the prices to $600 and $700 a square foot with the possibility of going to $800 a year further on,” Gold said.
Those kinds of increases in value translate to the entry level of Steamboat’s housing market, Gold said. Less than a mile from Cimarron, Gold is involved in Sunray Meadows condominiums, which represent entry-level product in today’s market. The price of those homes has recently escalated from $200 per square foot to $350 per square foot.
Downs has seen it all in Steamboat in 32 years. He can recall busing tables in restaurants and cleaning condos to augment his income. He urges longtime residents who are anxious about the pace of change in Steamboat to understand that failure to grow means stagnation or regression. Look at the remarkable community assets Steamboat is able to afford and carry on with life in a beautiful valley, he urged.
“The engine that runs every community is business,” Downs said. “We have an incredible medical facility, I was impressed with the community’s willingness to fund a new library. We have a vibrant arts community, look at the benefits (of the half-cent sales tax) for our schools.
“Growth always creates challenge and change. But if you stop change, then there’s a reversal. Would we all like to live in s sleepy little town with fabulous skiing? Probably. Life goes on.”
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