by ERIK FALLENIUS, Broker & President, Nevasca Realty, Inc.
Rumor has it... that Hotel Madeline is now under contract at $ 49M in Mountain Village. The good news when properties like this sell is that there is always an infusion of capital whether it's into improvements, general upgrades, or more marketing. It will most likely also mean additional new condominium inventory in Mountain Village. A sale of Hotel Madeline would be good for Telluride and Mountain Village.
The Peaks Hotel is back on the market also, desiring to sell its remaining 90 rooms, spa/gym, offices, retail spaces, etc., and hoping to achieve a number in the low $30M range. This is a complex transaction with contract encumbrances of previous buyers of hotel units. The Peaks Hotel, with all of its superb resort qualities, deserves to be managed as an heirloom hotel, with a long term return. Of course it's not easy to find the hotel buyer with that philosophy.
2014 June was up in total dollar volume of sales to $27.3M (20 sales), as compared to 2013 at $ 20.38M (25 sales), 2012 at $ 15.3M (20 sales) and 2011 at $ 12.7M (18 sales). The low hanging fruit is selling, and the market is showing signs of shifting upward. The meaningful news is that year to date sales over last year, our overall market is up a solid $ 47.3 M.
I continue to feel optimistic about the single family home market in Mountain Village. With 9 sales totaling $ 25.6M, and 4 more pending at a list value of just over $ 17M, there's some optimism in the air. I heard that Valmore, on our best of the MLS list, was deservingly getting a lot of attention currently. As the saying goes..."the best real estate sells at the lowest price when the market begins to shift!"
Other news... Considering the quantity of discussion around the future new clinic location over many months, years actually, I was (and wasn't) surprised to read as Telluride Watch reported last week:
"Following the issuance of a Request for Information last March, the Telluride Hospital District announced Thursday it has received three formal responses to the request from three landowners – one in Mountain Village and two in Lawson Hill – by the June 23 deadline. The hospital district did not receive a submission from the Town of Telluride regarding the possible use of the town-owned Lot B on the Pearl Property."
Another loss for Telluride was the Town's vote against allowing the development of the Hotel Ajax at the east end of Town by the post office. As The Telluride Watch reported:
'In a classic showdown before the Telluride Town Council on Tuesday, a developer and his supporters presented their best arguments for a waiver to allow an application for a hotel to be built on one of the last large vacant parcels in Telluride to proceed, opponents of the project came back with guns blazing, and a divided council could not come up with the five vote supermajority necessary for the hotel application to proceed.
Council voted 4-3 to deny the waiver to the town’s Land Use Code, with councilors Kristen Permakoff, Thom Carnevale and Jenny Patterson opposed. (Anything less than a 5-2 vote was a denial.) The waiver would have allowed the proposed Hotel Ajax to apply to the town’s lower boards for a Floor Area Ratio of 2.4:1. Without the waiver, a building in the zone district cannot exceed a 2:1 FAR. The developers stated unequivocally that the additional FAR, amounting to about 16,000 square feet, was essential to build the minimum 50 hotel rooms
As a result, unless the developer, Randy Edwards, was bluffing, the parcel will be developed instead as condominiums.'
Since we are a resort community first, where tourists come and enjoy the historic Town, the spectacular ski resort, it's festivals, cultural programs, and it's unbelievable setting, 50 hotel rooms in Town would have been better for the community. That said, a status quo block of commercial ground floor with condominiums above, will also be good... just not as good