Property Types
Hospitality
Aug 06, 2009
By: Tonie Auer, Contributing Correspondent
Bargain prices for namebrand merchandise. No, it isn’t a sale at Macy’s or Nordstrom, it is the current market for resort properties. The sale of the exclusive ski lodge for the rich and famous in Big Sky, Mont.--the Yellowstone Club--was finalized this week for $115 million. Reports show that the resort could have sold for somewhere around $400 million just a year ago.
The resort occupies approximately 13,400 acres in Big Sky with more than 2,200 skiable acres and a championship golf course. It is the only gated, private ski and golf community in the world, according to CB Richard Ellis Inc., which handled the sale.
“The Yellowstone Club sold for a fraction of debt, which unfortunately is more a sign of the bad economic times, rather than a sign that things are turning around,” Morgan Abbott, senior underwriter with CB Richard Ellis Golf & Resort Properties, told CPN. “The sale was directed by the U.S. Bankruptcy Court and, also, unfortunately came on the heels of a divorce.”
The property was sold at an auction directed by the United States Bankruptcy Court. The Yellowstone Club was started in 1999 by timber baron Tim Blixseth and his now former wife, Edra. The seller was Yellowstone Mountain Development, which Edra Blixseth was a major part.
The buyer was Cross Harbor Capital of Boston. Cross Harbor is the largest developer within the Yellowstone Club, owning a substantial amount of the lots and serving as the largest builder there, Jeff Woolson, managing director of CBRE's Golf & Resort Group, told CPN.
The purchase comes with a significant amount of land for future development, including 37 subdivided and improved lots of varying sizes, plus an additional 388 "dwelling unit" rights for residential lots or condominium pads, which includes 80 partially developed lots.
The Yellowstone Club's current master plan approval allows for a total of 864 dwellings with 439 lots and residences already sold. Values of existing homes range from approximately $4 million to $16 million. Most homes have ski-in/ski-out access and are strategically positioned throughout the property, including on-mountain chalets, private ranches, custom homes and condominiums.
“This is the top of the heap. Bill Gates is a member of this club. It is all about skiing. It is the size of Deer Valley, but there are no lift lines and no tickets to buy for the lifts. From that perspective, it is amazing. It is in proximity to Yellowstone National Park. This represents the very pinnacle of resort community in the country and $115 million is a really good price,” Woolson said.
Another similar property in Utah, though not the scope or size of this member base, sold for only $30 million recently, Woolson said. There may be a lot of these places on the market and the prices may all be below what the sellers want, he added.
Yellowstone Club members and their guests have exclusive use of more than 60 ski runs and 15 ski lifts covering Pioneer and Andesite Mountains, with skiable access to the adjacent Big Sky Resort. Ski runs are groomed every day before the club opens, providing world-class conditions known locally as private powder.
Marcus & Millichap National Hospitality Group’s second quarter hospitality report stated that tight capital markets and the deterioration of operating fundamentals have restrained investment activity, with transaction velocity decreasing more than 40 percent over the past 12 months. The delinquency rate on loans backed by hotel properties has risen to the low-2 percent range and is expected to tick up further as falling revenues pressure property owners. Lodging property delinquency reached a high of 8.4 percent in early 2003, a level that could be attained again in the next several quarters as cash flows continue to decrease. Properties most at risk consist of those purchased in 2006 and 2007, the report stated.
By: Tonie Auer, Contributing Correspondent
Bargain prices for namebrand merchandise. No, it isn’t a sale at Macy’s or Nordstrom, it is the current market for resort properties. The sale of the exclusive ski lodge for the rich and famous in Big Sky, Mont.--the Yellowstone Club--was finalized this week for $115 million. Reports show that the resort could have sold for somewhere around $400 million just a year ago.
The resort occupies approximately 13,400 acres in Big Sky with more than 2,200 skiable acres and a championship golf course. It is the only gated, private ski and golf community in the world, according to CB Richard Ellis Inc., which handled the sale.
“The Yellowstone Club sold for a fraction of debt, which unfortunately is more a sign of the bad economic times, rather than a sign that things are turning around,” Morgan Abbott, senior underwriter with CB Richard Ellis Golf & Resort Properties, told CPN. “The sale was directed by the U.S. Bankruptcy Court and, also, unfortunately came on the heels of a divorce.”
The property was sold at an auction directed by the United States Bankruptcy Court. The Yellowstone Club was started in 1999 by timber baron Tim Blixseth and his now former wife, Edra. The seller was Yellowstone Mountain Development, which Edra Blixseth was a major part.
The buyer was Cross Harbor Capital of Boston. Cross Harbor is the largest developer within the Yellowstone Club, owning a substantial amount of the lots and serving as the largest builder there, Jeff Woolson, managing director of CBRE's Golf & Resort Group, told CPN.
The purchase comes with a significant amount of land for future development, including 37 subdivided and improved lots of varying sizes, plus an additional 388 "dwelling unit" rights for residential lots or condominium pads, which includes 80 partially developed lots.
The Yellowstone Club's current master plan approval allows for a total of 864 dwellings with 439 lots and residences already sold. Values of existing homes range from approximately $4 million to $16 million. Most homes have ski-in/ski-out access and are strategically positioned throughout the property, including on-mountain chalets, private ranches, custom homes and condominiums.
“This is the top of the heap. Bill Gates is a member of this club. It is all about skiing. It is the size of Deer Valley, but there are no lift lines and no tickets to buy for the lifts. From that perspective, it is amazing. It is in proximity to Yellowstone National Park. This represents the very pinnacle of resort community in the country and $115 million is a really good price,” Woolson said.
Another similar property in Utah, though not the scope or size of this member base, sold for only $30 million recently, Woolson said. There may be a lot of these places on the market and the prices may all be below what the sellers want, he added.
Yellowstone Club members and their guests have exclusive use of more than 60 ski runs and 15 ski lifts covering Pioneer and Andesite Mountains, with skiable access to the adjacent Big Sky Resort. Ski runs are groomed every day before the club opens, providing world-class conditions known locally as private powder.
Marcus & Millichap National Hospitality Group’s second quarter hospitality report stated that tight capital markets and the deterioration of operating fundamentals have restrained investment activity, with transaction velocity decreasing more than 40 percent over the past 12 months. The delinquency rate on loans backed by hotel properties has risen to the low-2 percent range and is expected to tick up further as falling revenues pressure property owners. Lodging property delinquency reached a high of 8.4 percent in early 2003, a level that could be attained again in the next several quarters as cash flows continue to decrease. Properties most at risk consist of those purchased in 2006 and 2007, the report stated.
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