by recentricrealty | Nov 3, 2011 | Space Markets, Uncategorized
They are both loved by the world and Coloradans in particular. In fact, last week I had lunch with a dear friend of the late John Denver. I was very interested to hear, among some of the stories, that there is a performing John Denver artist in every country around the world carrying on the John Denver songs for the fans. You have to agree that John’s folk song, “Rocky Mountain High” still gives you goose bumps each time you hear it.
As far as Aspen real estate, while Aspen has not been impervious to the downturn, they have had an impressive rebound. Consider the following facts:
1) At a time when development land is being picked up from banks for pennies on the dollar, Base Mountain Village a train wreck of a development, is now witnessing a bidding war. The unfinished 20 acre project is located at the bottom of Skico’s largest mountain, Snowmass Ski Area, just outside of Aspen. It ran into financial trouble in April 2009 when Related Cos. defaulted on a $520 million acquisition and construction loan from Hypo Real Estate Credit Corp. According to The Aspen Times, three other companies are also thought to have submitted bids: East West Partners of Vail, Real Capital Solutions of Louisville, Colorado, and Related Cos.
2) Home sales in the Aspen area are surging even though the housing market is in a slump nationwide. Real estate officials say annual sales from 2009 and 2010 will be easily topped this year. Real estate officials say total sales topped $1 billion in October, an increase of 19 percent over the same period last year. In September alone, 86 real estate transactions were valued at more than $137 million. Source: AP
3) Aspen Ski Company, aka SkiCo posted an increase in 1.7% over the previous year in number of skier visitors to Aspen. Most of the increase was from season pass holders vs. destination travelers. Colorado continues to gobble up the largest share of the skier and rider market. Its resorts log 20.4 percent of annual visits nationwide. California is next highest with 12.1 percent. Vermont’s share is 7.1 percent while New York is at 6.9 percent. Utah rounds out the top five states with 6.8 percent of the market.
All in all, the Aspen real estate market is proving to perform ahead of the competition. On the personal side, if you have never visited Aspen, I would highly recommend it. You may even spot a famous person in the lift line or perhaps a John Denver look alike!
Also, please join us for our bi-monthly education series called Life’s Financial Navigator at the Denver Athletic Club on November 16th with our guest speaker, Alison Dunnebecke, CPA, Tax Partner at Hein & Associates in Denver. Alison will be discussing year end tax planning and topics such as planning ideas for closely held businesses including a discussion of tax benefits relating to business assets, use of automobiles, retirement plans, other business deductions and available credits. Alison will cover the current rates in affect and when they are due to expire. She will also touch on “what’s new in Washington” and IRS exam activity, along with personal tax tips for individuals.
Resort Realty Capital is currently searching for value-add and opportunistic acquisitions in Aspen and 10 other Rocky Mountain markets through our broker partners. If you would like to learn more, please contact us.
Darren Nakos, CCIM
Resort Realty Capital
111 Main Street
Frisco, CO 80443-0630
(720)-663-1430
THIS IS NOT A SOLICITATION FOR INVESTMENT – THIS INQUIRY IS TO FIND OUT IF YOU ARE INTERESTED IN RECEIVING ADDITIONAL INFORMATION. NEITHER RESORT REALTY CAPITAL, LLC, IT’S AFFILIATES AND REPRESENTATIVES MAKE ANY REPRESENTATION REGARDING THE RISKS OF INVESTING IN COMMERCIAL REAL ESTATE. YOU SHOULD CONTACT YOUR OWN PROFESSIONALS TO MAKE THE DETERMINATION AND ASSESS THE RISK OF INVESTING. AS WITH ANY INVESTMENTS, THERE ARE INHERENT RISKS AND NO GUARANTIES OF RETURNS. PLEASE CONSULT WITH YOUR OWN PROFESSIONALS IN DETERMINING THE RISKS ASSOCIATED WITH INVESTING IN COMMERCIAL REAL ESTATE.
by recentricrealty | Mar 28, 2011 | Space Markets, Uncategorized
You have heard the saying: “All real estate is local.” Keep this in mind when you hear the news headlines which are meant to exacerbate the downturn and drum up ratings by combining all national real estate figures. Because real estate in certain areas of the country is struggling does not mean that other areas are not flourishing. Every property and market is different when you are talking jobs, public policy, speculative building and generation maturity to name a few! Never is this more evident than in the future redevelopment of Eagle Vail’s airport and a substantial investment directed at in-fill projects.
Vail’s Airport, Eagle County Airport, has the highest number of scheduled commercial flights than any other resort market airport in Colorado. And, last December saw an increase of 0.5% over the previous year’s December. Understanding the significance of the airport’s role in the local economy, the Vail Valley Jet Center has begun a $3 million feasibility study to expand all services to accommodate more international commercial charter flights.
Additionally, Ever Vail, Vail Resorts’ latest grand development is in its final stages of approval by the Vail Town Council. According to planners, EverVail will accomplish the following: “The proposed Ever Vail mixed-use project will redevelop a nearly 12-acre site that is currently home to an aging maintenance facility, office buildings and a former gas station, providing the much-needed in-fill development to create a connection between Lionshead Village and Cascade Village. It will bring together mountain operations, affordable and free-market housing, and community benefits.” Once this project is approved, it is a matter of time and healthier market conditions until development proceeds. To learn more, visit http://www.evervail.com/
Vail’s redevelopment of critical infrastructure is driven by positive skier visit growth. According to the Denver Business Journal, early-season skier visits are up 10.1 percent and lift-ticket revenue is up 7.4 percent at Vail Resorts’ properties as of mid-January 2011 (Skier visits up at Vail Resorts’ properties | Denver Business Journal). While the ski resorts are holding their own in terms of skier traffic, real estate is still lagging behind. It is the “lag” that has created tremendous investment opportunities throughout the Rocky Mountains.
When analyzing markets with the greatest investment possibilities, we look for tell tale signs like those seen in our target markets of Vail, Aspen, Breckenridge and Durango. We study key decisions being made by community planners and large industry and put ourselves in the path of progress. To learn more about Resort Realty Capital, please visit www.resortrealtycapital.com.
by recentricrealty | Mar 7, 2011 | Space Markets, Uncategorized
I have been surrounded by technology for 20 years of my life. However, it appears that the world is changing much more rapidly just in the past few years. So many aspects of the world have been affected by technology. Let me recap some of them:
1) Licking stamps and sending mail is quickly becoming a thing of the past. The United States Postal Service is no longer a viable government entity because of fax and email. The projected USPS $238 billion shortfall in the coming decade is a direct result of emerging technologies overtaking a government who can not change with the times.
2) Thanks to the digital age, the publishing, book and movie industries have been turned upside down. Long time establishments such as Borders Bookstore and Blockbuster are things of the past. “While not all places that sell content — movies, music, newspaper and books — will go out of business within 10 years, many will likely lessen the number of storefronts and offer more online,” said Lorcan Sheehan, vice president of marketing and strategy for ModusLink, which helps high-tech companies design better supply chains.
3) Remember the travel agent? The Internet has given the power to the people to manage their own travel with ease. According to Ken Marshall, The Plain Dealer, “Since 1999, the U.S. travel agency industry has lost more than 75,000 jobs as more and more travel is booked via online sites that are backed by major airlines.”
4) Bringing down dictators: What has taken the United Nations several decades to attempt has been accomplished by Facebook and Twitter in a matter of months. The Middle East is rapidly changing before our eyes, as the power is being taken back by the people, and out of the hands of the dictators who have run these countries for decades. According to Globe and Mail, an estimated 3.4 million Egyptians use the social networking site, the vast majority under the age of 25. Egypt is the No. 1 user of Facebook in the Arab world, and No. 23 globally. It is the third most-visited website in the country, after Google and Yahoo. In one example during the recent revolt, some 80,000 Egyptians had vowed on Internet petitions that they would take part in the January 25 protests. Far fewer — some 20,000 — actually turned out, but political analysts were surprised that the organizers were able to translate their cyber protest into such large street actions. That is an astounding use of technology.
As I reflect on Resort Realty Capital, I am bringing together the power of technology – in sourcing great opportunities, sharing them with my investors, and keeping everyone updated in a way that would not have been possible just a few short years ago. In addition, I’m bringing the beauty and splendor of ski resort locations to investors who have a love for not only spending free time in the mountains, but investing in them.
One thing we know technology will never replace is leisure activities in the resort markets. Whether it is sitting on a beach and staring at the whales playing in the ocean, or taking a cool run down Vail Mountain on perfectly groomed corduroy lines, these experiences can’t be obtained through the world wide web. Get out and take advantage of your life with friends and family. As Warren Miller, ski industry icon says” “If you don’t do it this year, you will be one year older when you do.”
Darren Nakos, CCIM
Resort Realty Capital
111 Main Street
Frisco, CO 80443-0630
(720)-663-1430
THIS IS NOT A SOLICITATION FOR INVESTMENT – THIS INQUIRY IS TO FIND OUT IF YOU ARE INTERESTED IN RECEIVING ADDITIONAL INFORMATION. NEITHER RESORT REALTY CAPITAL, LLC, IT’S AFFILIATES AND REPRESENTATIVES MAKE ANY REPRESENTATION REGARDING THE RISKS OF INVESTING IN COMMERCIAL REAL ESTATE. YOU SHOULD CONTACT YOUR OWN PROFESSIONALS TO MAKE THE DETERMINATION AND ASSESS THE RISK OF INVESTING. AS WITH ANY INVESTMENTS, THERE ARE INHERENT RISKS AND NO GUARANTIES OF RETURNS. PLEASE CONSULT WITH YOUR OWN PROFESSIONALS IN DETERMINING THE RISKS ASSOCIATED WITH INVESTING IN COMMERCIAL REAL ESTATE.
by recentricrealty | Jan 3, 2011 | Space Markets, Uncategorized
As the New Year arrives, one of my resolutions is to listen better. Whether it is with my family, friends or business associates, you can never be too good of a listener. As well, it pays to listen to the media. Listening to the media for trends can help guide you on where certain markets are headed.
The headlines of stories can tell you a lot about where slow moving markets like commercial real estate are headed. Here is a snapshot of where the commercial real estate market was in early 2010 and where it ended up at the end of 2010.
The stories as reported by Costar Group getting the most press in January and February 2010 were noticeably negative.
- Betting on Bad Debt Becoming a Growing Investment Play
- Commercial Real Estate in 2010: Weak Fundamentals and Constrained Liquidity
- Risky Commercial Real Estate Lending Deadly for Banks
- Movie Gallery Files Bankruptcy, Closing 800+ Stores
- Capital Market Recovery Will Take Time
- Distressed Commercial Real Estate Assets Jump 15% at Nation’s Banks
- Shopping Center Receiverships and Foreclosures Usher in the New Year
At the end of 2010, the stories as reported by Costar Group getting the most reads in last two months were more upbeat and positive.
- Have Commercial Real Estate Prices Bottomed Out?
- Has the Commercial Mortgage Backed Securities Market Finally Turned the Recessionary Corner?
- Google Acquires One of NYC’s Largest Buildings for $1.8B
- REIT Execs Hail Rally
- U.S. Multifamily Market Strengthens in Third Quarter on Rising Demand, Falling Vacancy
- Falling Retail Rents Mean More Store Openings
- Surge in Growth at Apple Prompts 100-Acre Cupertino Acquisition
No one knows tomorrow’s news, but more important, no one knows how market participants will react to the news. You can’t make the market meet your expectations. You have to go where the markets take you. As the old saying goes “The trend is your friend”
As our economy continues to slowly improve, investors will get back into the commercial real estate market only when they feel more secure about the industry, and it appears to be happening now.
Darren Nakos, CCIM
Resort Realty Capital, LLC
111 Main Street
Frisco, CO 80443-0630
(720)-663-1430
THIS IS NOT A SOLICITATION FOR INVESTMENT – THIS INQUIRY IS TO FIND OUT IF YOU ARE INTERESTED IN RECEIVING ADDITIONAL INFORMATION. NEITHER RESORT REALTY CAPITAL, LLC, IT’S AFFILIATES AND REPRESENTATIVES MAKE ANY REPRESENTATION REGARDING THE RISKS OF INVESTING IN COMMERCIAL REAL ESTATE. YOU SHOULD CONTACT YOUR OWN PROFESSIONALS TO MAKE THE DETERMINATION AND ASSESS THE RISK OF INVESTING. AS WITH ANY INVESTMENTS, THERE ARE INHERENT RISKS AND NO GUARANTIES OF RETURNS. PLEASE CONSULT WITH YOUR OWN PROFESSIONALS IN DETERMINING THE RISKS ASSOCIATED WITH INVESTING IN COMMERCIAL REAL ESTATE.
by recentricrealty | Jan 3, 2011 | Space Markets, Uncategorized
Originally Posted: November 1st, 2010
We have an exciting announcement, other than the fact that the political commercials will stop running tomorrow. Resort Realty Capital, (http://www.resortrealtycapital.com/) a private equity real estate investment company has been launched. We have assembled a dynamic and experienced team to capitalize on commercial real estate in resort markets that are suffering through the economic downturn. Why do we like the resort markets?
1) We like to invest in markets which have natural barriers to entry, such as Rocky Mountains! The availability of space is determined primarily by supply and demand. In brief, changes in population, transportation, land-use controls, employment, location, use and numerous other factors influence what real estate is available and where. Therefore, these changes will impact supply and demand. For example, as demand increases and supply or availability decreases, rental rates and property values increase. This translates into a higher return on investment.
2) People like to play. According to The Denver Post, June, 2010: “The state’s ski resorts tallied 11.86 million skier visits, a 0.8 percent increase over the previous season”. And this was during the heart of the recession.
The following are just some of the resorts we are focused on.
Vail Mountain
Vail is the single most visited ski resort in the United States for the 2008/2009 ski season and the single largest ski mountain in the United States. Vail offers some of the most expansive and varied terrain with approximately 5,300 skiable acres including seven world renowned back bowls and the rustic Blue Sky Basin area of the resort.
Breckenridge Ski Resort
Breckenridge is the second most visited ski resort in the United States for the 2008/2009 ski season and host of the highest chairlift in North America, the Imperial Express Super Chair, reaching 12,840 feet and offering above tree line expert terrain. Breckenridge is well known for its historic town, vibrant night-life and progressive and award-winning pipes and parks.
Keystone Resort
Keystone is the fourth most visited ski resort in the United States for the 2008/2009 ski season and home to the highly renowned A51 Terrain Park as well as the largest area of night skiing in Colorado. Keystone also offers guests a unique skiing opportunity through guided snow cat ski tours accessing five bowls.
Beaver Creek Resort
Beaver Creek is the seventh most visited ski resort in the United States for the 2008/2009 ski season. Beaver Creek is a European–style resort with multiple villages and also includes a world renowned children’s ski school program focused on providing a first-class experience with unique amenities such as a dedicated children’s gondola.
3) We target hotel, retail and apartment sectors in these markets for the following reasons:
– Hotels: As inflation starts to creep up, and the consumer starts to spend more, these factors along with the barriers to entry for other hotels make the resort markets an exclusive and highly opportunistic play for hotels.
– Retail: Many retailers and landlords have been hit by a shockwave in the resort markets. There are many distressed landlords who are giving properties back to the banks in an effort to save their overall portfolio. This is where we come in. With our ability to source new tenants and to close quickly on owner distressed properties, we can create value from an otherwise dire situation.
– Apartments: As interest rates rise, (which they eventually will), homeownership will become tougher to attain. Combine this with a market where much of the work force is transient, the demand for apartments are strong.
As you look to diversify your portfolio, consider alternative investments as a way to hedge against the ebb and flow of the stock market.
Regards,
Darren Nakos, CCIM
Resort Realty Capital
111 Main St
P.O. Box 630
Frisco, CO 80443-0630
(Office) 720-663-1430
(Fax) 866-210-0465
