Aspen Valley Ranch

The largest ranch in the Roaring Fork Valley is owned by a Bahrain-based investment company that recently filed for Chapter 11 bankruptcy in New York City, InsideRealEstateNews has learned.

The 813-acres Aspen Valley Ranch, currently on the market for $52 million, is the closet ranch to Aspen and is one of the assets in the bankruptcy reorganization of Arcapita Investment Holdings Ltd., which controls about a $2.5 billion portfolio of real estate investments, private equity, venture capital and infrastructure.

The Aspen Valley Ranch, which initially had been listed at $88 million and then $59 million before its asking price was reduced by another $7 million last month, is part of the Arcapita International Luxury Residential Development I, which also owns a project in Steamboat Springs.

In addition to the Colorado properties, the luxury residential development group holds a total of $689.4 million in resort properties, including a 4,300-acre development in Tuscany, Italy and a 15-acre beachfront parcel on the island of St. John in the Virgin Island.

Joshua & Co. listing

Aspen Valley Ranch is the closest ranch to Aspen.

“Aspen Valley possesses the unique traits of both a historic, working ranch and a luxurious recreational getaway, with senior water rights, flat, irrigated pastures, and a new 10-stall horse barn, as well as vast, adjacent public lands, trails, a recently enhanced stream, ponds, wildlife, and awesome Elk Range views,” according to Aspen-based Joshua & Co., which is listing it. The real estate company went on to describe it as, “New rustic/chic 5,750 square foot-foot home and 1,900 square-foot  ranch manager cabin in place, along with the approvals to either build a whole lot more or preserve some or all of it with a conservation easement.”

A report in January, before the most recent price reduction, listed it as the fifth most expensive ranch for sale in the U.S.

The listing price of Aspen Valley Ranch has been slashed by 41 percent from its original asking price.

The main residence was designed in 2009 and contains four of the ranch’s seven bedrooms. Features include inlaid Argentinian maroon leather flooring, a 30-foot-tall room with views overlooking Elk Range and ski terrains, a spa off the back patio, a couple’s steam shower and a copper tub in the master bath.

The ranch also includes senior water rights and a 10-stall horse stable

A buyer who put down 20 percent and received a 4.25 percent loan would have monthly principal and interest payments of $203,743 on a 30-year loan.

Also part of the bankruptcy filing is One Steamboat Place, which includes 38 condominiums and 42 private residence club units. One Steamboat filed for foreclosure in 2011.

Arcapita bought both Colorado properties in 2007, before the real estate market collapsed.

The global recession and the debt crisis in the Eurozone are the two primary factors leading to Arcapita’s bankruptcy filing, according to the filing. The asset values fell and the recession made it difficult for the company to access additional capital. The company was the borrower under a $1.1 billion Sharia-compliant debt facility that was to mature on March 28, but it was unable to repay. Instead, the company filed for bankruptcy.

One Steamboat Place, which filed for foreclosure last year, is part of a Bahrain company's bankrupty.

“After reviewing all the available options with management and its financial and legal advisors, the board has agreed that a filing for protection under Chapter 11 is not only a necessary step, but the best course of action, to safeguard the interests of the bank’s stakeholders,” Mohammed Abdulaziz Aljomaih, chairman of Arcapita’s board, said in a statement when it announced the bankruptcy on March 19. “It will allow Arcapita to restructure its balance sheet and reorganize its business to maximize recoveries for all creditors and other constituencies. This was a difficult decision. But after lengthy review of all the alternatives open to us, there is no question that this is the right course of action, which we are taking with the support of the board. Arcapita is committed to completing this reorganization as quickly and efficiently as possible.”

Contact John Rebchook at JRCHOOK@gmail.com.

Related Posts:

• Shadow market drives vacancies in mountains
• Statewide apartment vacancies rise
• Bankrupt Landmark developer back in real estate
• Steamboat, Broomfield get HUD grant
• WSJ: Aspen Blue Chip, Vail Depressed

This Aspen home is listed by SDS Real Estate for $22 million.

The Wall Street Journal, in an article today titled “Vacation Homes: Why It May Be Time to Buy,” listed Aspen as one of four “Blue Chip” markets and Vail as one of four “Depressed Markets.”

Aspen found itself in the company of the Hampton, Hilton Head and Santa Barbara. The WSJ also described Aspen as a “luxury market bellwether.”

Vail was grouped with Miami Beach, Martha’s Vineyard and Palm Beach. One broker in Vail said that sales activity has slowed because of fears “the other shoe is going to drop.”

What also interested me was that Aspen also had the highest overall prices of the eight markets profiled, at a median price of $781,000.  It also showed the smallest five-year decline of any of the markets, down a mere 2.6 percent. Palm Beach, Fla., was at the other end of the spectrum, with the median price falling 66.5% to $254,000 from $758,000 five years ago. And Miami, with a median price of $130,000, down 57 percent from $302,000 five years ago, sounds more like a short-sale in Aurora than a home in a glitzy resort.

Resort area	Median Home Price	Median Home Price 5 Years Ago	Percentage Decline
Aspen	$781,000	$802,000	2.6%
Santa Barbara	$695,000	$1,000,000	30.5%
The Hamptons	$680,000	$1,100,000	38.2%
Hilton Head	$307,000	$574,000	46.5%
Martha's Vineyard	$403,000	$638,000	36.8%
Vail	$385,000	$562,000	31.5%
Miami	$130,000	$302,000	57.0%
Palm Beach	$254,000	$758,000	66.55
Source: Wall Street Journal

To read the entire WSJ article, please visit this link.

Related Posts:

• WSJ: Vail project on hold
• WSJ: $47 million asking price for Snowmass mansion
• Aspen home features "Mountain Zen"
• Aspen ranch part of Bahrain company’s bankruptcy
• Zell bidding for Archstone-Smith stake

The Craig Ranch near Aspen is priced at $43 million.

The Craig Ranch, 838 acres of pristine land 10 miles from Aspen, is on the market for $43 million. That price tag made it the most expensive property on a CNBC.com report called “Legay Estates for Sale.” The spread was first homesteaded in 1899 and has been in the Craig family since 1964, according to the article.

So what does $43 million get you?  Well, there’s a three-bedroom home with 2.5 bathrooms. But it’s not about the house, of course, but about the “well-preserved land, with its undisturbed meadows and forests,” according to CNBC.com. The property is being listed by Bob Starodoj and Ed Foran of Mason Morse or Aspen.
To read the entire article, please visit Legacy Estates For Sale.

Related Posts:

• Is Denver’s home market heading for a dive or recovery?
• Hornung: Buyers need to buyer’s market at the door
• Real estate heavyweights highlighting conference
• April housing market sizzles
• Hornung: Time to buy is a personal decision

This home sold for $13.8 million.

The Texan, who developed a number of properties on Red Mountain in Aspen, approached broker Steven Shane in mid-December with a deal on a tight timeframe.

The Texan, whom Shane declined to identify by name, told Shane that he was willing to sell a 10,398-square-foot home at 1375 Red Mountain Road with six-bedrooms, six full bathrooms, an infinity pool and even a solar-powered snow-heater on the driveway, for far less than the  $19.995 million asking price.

However, the home, owned by a Fort Worth-based LLC, according to public records, had to close by the end of the year for tax purposes.

Willing to take a hit

“His primary business is not real estate development,” said Shane, owner of SDS Real Estate in Aspen. “He is actually in the oil and gas business. He told me he was willing to sell it even below the current market value, because he had enjoyed such a great level of success in his other business he could afford to take a loss.”

The catch, of course, is that Shane had about two weeks to close the deal during the Christmas holiday season. Because the home is a spec, investment property, and not a primary residence, the seller would be eligible for a tax loss.

So what did Shane do?

Doing the hustle

“I hustled,” he said.

He called a broker, Dale Hower of Frias Properties, whom he knew had a client that had expressed an interest in buying 1375 Red Mountain Road. “I asked for permission to speak to her buyer and connect to the buyer,” Shane said. She granted the permission.

He laid out the deal, but stressed it needed to close by the end of the year.

The buyer agreed and closed on the home for $14 million on Dec. 30. “The buyer was an out-of-state guy who is in the world of finance,” Shane said. He paid almost 30 percent below the asking price.

While that would be a great way to close out a year for any broker, Shane wasn’t done yet.

$49 million in closings in one day

There were two more homes in the mix. And like 1375 Red Mountain, they all closed on Dec. 30. Together, they sold for about $35 million, but because Shane handled both sides of one deal, his total transaction “sides” equated to about $49 million in closings on the same day.

Earlier in the year, Shane represented a buyer who paid $31.5 million for an estate in Aspen, the biggest residential deal of 2010.

“That brings my total sales volume in 2010 to approximately  $100 million,” Shane said, marking his best single year, despite the tough market.

Here is a snapshot of the other two deals that closed on Dec. 30.

Shane also was listing a home at 310 West Francis St, in the  West End of Aspen. The home has 6,385-square-feet of space, six bedrooms, seven full bathrooms and a caretakers unit.

This Aspen home sold for $7.1 million.

The home was listed for $9.95 million.

“I had an offer, but it was too low for my seller,” Shane said. “So I called the broker and asked her if the buyer would come up in price.”

The buyer did and paid $7.1 million, 29 percent below the listing price. Amy Doherty of Amy Doherty Properties represented the buyer.

Meanwhile, the Texas oil-and-gas guy owned a home at 355 Ridge Road on Red Mountain that was not officially on the market.

But Shane approached him and asked if he would be willing to sell.

The seller of 310 W. Francis used the proceeds of that deal and came out of pocket an additional $7 million to buy the home at 355 Ridge Road for $13.8 million. Shane handled both side of the transaction, giving him almost $28 million in “sides,” in Realtor-speak. The 8,463-square-foot home is valued for tax purposes at $20 million by the Pitkin County Assessor.

Team work pays off

Closing three big deals on one day was no easy task.

“It is very important to understand how unbelievably hard everybody worked,” Shane said. “There are many moving parts in transactions like these. Sacrifices were made by title companies, surveyors, attorneys, building inspectors, the entire SDS support staff and many other individuals who took time away from their families during the holidays.”

That three deals of that magnitude could come together in such a short period of time, also speaks volumes regarding how the super-rich are looking at Aspen real estate, Shane said.

Tired of the sidelines

“People are tired of being on the sidelines,” Shane said. “People have adjusted their business and personal lives. They understand the economic realities of their situations, and feel comfortable making a move. It took a while to get there. But the adjustments have been made. At some point people want to enjoy life and the fruits of their success. They don’t want to wait forever.”

What that means, he said, is that 2011 is likely to see much more buying activity in Aspen than in 2010.

“I think we are going to see a heck of a lot more high-end properties sell,” Shane said. “I really do.”

Contact John Rebchook at JRCHOOOK@gmail.com

Related Posts:

• Is Denver’s home market heading for a dive or recovery?
• Hornung: Buyers need to buyer’s market at the door
• Foreclosures down in Colorado
• 8z broker: Westminster has it all
• Home sales sizzle in March

This 44-acre estate recently sold for $31.5 million, the biggest Aspen deal this year

A low-profile Chicago billionaire recently paid $31.5 million for a 44-acres estate in Aspen, the top sale so far this year in the ritzy resort

The Aspen brokers who handled the sale – buyer’s broker, Steven Shane of SDS Real Estate and listing broker, Joshua Saslove of Joshua & Co. – declined to identify the buyer. The sale closed last Friday.

The Wall Street Journal, however, in a report today said the buyer was Chris Reyes. J. Christopher Reyes, with his brother, Jude, heads Reyes Holdings, a $12 billion in sales, privately held food- and beer-distributor company in the Chicago area. An official at the company told InsideRealEstateNews this morning that Reyes was traveling and not available for comment.

Not that he was likely to say anything about the Aspen property.

Powerful, but private

In 2005, Crain’s Chicago Business described Reyes as one of “the most powerful business figures in Chicago. He just doesn’t want anyone to know it.”

Forbes magazine recently estimated his net worth at $1.9 billion. He was a director on the Tribune Co. from 2005 to 2007, but resigned from the board soon after it was purchased by Chicago real estate investor Sam Zell and a year before it filed for bankruptcy.

Reyes Holdings, based in Rosemont, Ill., a nearby suburb of Chicago, is the 25th largest privately held company in the U.S. It employs 10,300.

It distributes more than 406 million cases of beer and food-service brands from more than 90 warehouses in the U.S., Canada, Ireland, Puerto Rico, and Central and South America. The Reyes Beverage Group delivers beer to more than 26,000 accounts in the U.S. Another division, Martin-Brower Co., serves 9,600 McDonald’s in the U.S., Canada, Ireland and Latin America. In addition, Reinhart FoodService has more than 40,000 customers in 37 states.

Aspen Grove Properties LLC officially purchased the Aspen estate, known as West Buttermilk Ranch. It was sold by WBR Associates LLC of Woodside, Calif., whose principal is Bob Zangrillo, founder of Z Capital, a private equity firm.

The home initially had been listed at $60 million, but the price then had been cut to $47.5 million before it sold for 33.6 percent less than the most recent asking price.

Shane, the buyer’s broker, called the $31.5 million price “is a good deal for the buyer, and a fair deal for the seller. How many buyers are out there who can write a check for north of $31 million?”

Legacy property

“We were looking for a legacy property; a property that could remain in his family for years,” said the buyer broker Shane, who emphasized he would provide no details regarding the buyer.

“He’s obviously very private,” Shane said. “He bought it through a limited liability company. Unlike some brokers, I protect my client’s wishes for privacy, even after the closing.”

Saslove, the listing broker, also made it clear he would not discuss anything about the buyer. But he said the buyer now owns a one-of-a-kind property.

“It is truly a spectacular, private site that is in a class by itself,” Saslove said.

Shane added that even in Aspen, there are not many properties out there like this one.

“This property was different from others, in the respect that it sits on 44 acres,” Shane said. “There are not that many superior homes on that type of acreage, with these dramatic views, with a close-in proximity to downtown Aspen. I would say it is a 10 to 15-minute drive to downtown. All of the elements we were interested in were found in this property.”

The estate includes a 13,877-square-foot main house with two master suites, four guest suites, five baths, and four half baths. It even has a two-bedroom caretaker apartment. It was designed by Aspen architect Rob Sinclair. Joseph Krabacher, of the Aspen office of Sherman & Howard law firm, handled the legal transaction for Zangrillo.

In addition, it includes:

• A 4,517-square-foot, eight-stall horse stable

• A 1,112-square-foot guest house with two bedrooms and a one bath

• A great room with a large fireplace, “old-world” wood, steel beams and large plank floor. A bar and service area for entertaining.

• A private office with fireplace, bath, shower and deck.

• A private guest-with with three bedrooms

• A downstairs media room and a wine room with a tasting table.

Bullish sign for Aspen, economy

Both Shane and broker Saslove said the sale is a good sign for the Aspen and the economy.

“I think that this sale is a commentary on people with the wherewithal are now buying, while previously they may have been on the sidelines,” Shane said. “They are seeing value at the high-end of the market and want to take advantage of current prices for these properties. This was not a distressed sale by any stretch.”

Saslove, who also emphasized he would not talk about the buyer, had similar comments on the significance of the sale.

“It is an indicator, No. 1, that there are buyers out there,” Saslove. “No. 2, buyers who have this kind of wealth are able to make the choices where they want what they want. A purchase of this magnitude also is an indicator of the faith in the economy and specifically faith in the Aspen market.”

Saslove said this deal continues a streak for Joshua & Co. “For five years in a row now, our has sold the highest priced real estate each year in Aspen,” Saslove said.

Indeed, high-end sales by Joshua & Co. that eclipsed the latest one in price include:

• The historic Hotel Jerome in downtown Aspen in 2007 for $55 million.
• Mandalay Ranch in 2004 for $46 million.
• Crystal Island Ranch in 2006 for $47 million.
• A home on Red Mountain in 2009 for $43 million.

Contact John Rebchook at JRCHOOK@gmail.com

Related Posts:

• Aspen ranch part of Bahrain company’s bankruptcy
• WSJ: Aspen Blue Chip, Vail Depressed
• Aspen ranch tops list
• Big day for Aspen real estate
• Ranch outside of Rifle being auctioned

The Beaver Creek Highlands Ranch near Rifle is being auctioned in August.

The ranch, owned by Robert Mandich of Aspen, includes two springs, frontage on a rushing trout stream and views of area mountain ranges. The land, between the Beaver Creek Basin and the Porcupine Creek Basin, has hunting and fishing opportunities, is being offered in 14 tracts, ranging from 35 acres to 70 acres. Seven tracts will sell absolute, meaning they will go to the highest bidder with no minimum or reserve, according to Jim Woltz, president of Woltz & Associates, which will market the property and manage the sale. Wells can be drilled on each tract for homes.

Postcard perfect views

“Each of these tracts has its own beauty, its own personality,” said Woltz. “They all sit between 7,400 and 8,400 feet, and many have great views of the Colorado River Valley, the Flat Top Mountain Range, the Grand Hogback Mountain Range, or the Grand Mesa. Several of them have creek frontage, and two tracts even have their own natural sources of spring water, one feeding a pond.”

The property also boasts numerous gaming and recreational opportunities, including hunting, fishing, biking, snowmobiling, cross country skiing, and hiking, Woltz said. Parts of the property adjoin the national forest and land owned by the Bureau of Land Management.

“This land epitomizes the Colorado mountain getaway,” Woltz said. “Yet it’s only nine miles from the Garfield County Airport in Rifle.” The property is also easily close to Interstate 70, providing easy access to Denver, Aspen, Vail and Grand Junction.

The auction will be held at the Hotel Colorado in Glenwood Springs. Open house events will take place on August 14, 15, 21, 22, and 27 with Woltz auction associates available for consultation. Details are provided at www.woltz.com, and individuals seeking additional information about the property or the bidding process may call 800-551-3588.

Water is always a valuable asset when it comes to ranch-land.

Woltz & Associates, headquartered in Roanoke, Va., is an auctioneer of high-end real estate, including homes, land and commercial property throughout the United States. The company is partnering on the sale with Leverich & Carr Real Estate, of Aspen.The Berry family homesteaded the property in 1900. The remnants of the Berry’s log cabin are perched in an open meadow on one of the parcels.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

Related Posts:

• Big spread hitting auction block
• Aspen ranch part of Bahrain company’s bankruptcy
• WSJ: Aspen Blue Chip, Vail Depressed
• Aspen ranch tops list
• Big day for Aspen real estate

It can be yours, if you have $47 million burning a hole in your pocket.

And that is $47 million for a home that doesn’t much of a view, according to broker Craig Morris, of Morris & Fywald Sotheby’s International Realty, although he admits it is close to downtown Aspen. Known as Stony Creek Ranch, it is one of the most expensive in the listings in the U.S. Last year, New York money manager Lewis A. Sanders paid $43 million for a home in Aspen, which may have been the most expensive home sold last year in the U.S.

For the entire story, go to this link.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

Related Posts:

• WSJ: Aspen Blue Chip, Vail Depressed
• Aspen home features "Mountain Zen"
• Aspen ranch part of Bahrain company’s bankruptcy
• Zell bidding for Archstone-Smith stake
• WSJ: Gardens, not golf courses, housing draw

Only Colorado Springs and Sterling, out of 22 cities and towns surveyed, reported fewer vacancies during the third quarter of this year than during the same period last year, according  to a report released today by the Department of Local Affairs’ Division of Housing. And monthly rental rates were basically flat from a year earlier.

Among large metropolitan areas, Fort Collins and Loveland reported the lowest vacancy rates at 5.9 percent and 4.3 percent respectively. All other metro areas measured in the survey reported vacancy rates above 7 percent.

Pueblo and Grand Junction reported the largest increases from the third quarter of last year to the third quarter of this year. In Pueblo, rates rose from 6.8 percent to 12 percent year over year, while they rose from 2.4 percent to 7.5 percent in Grand Junction during the same period.

Third quarter vacancies in the metro Denver area, measured in a separate survey last week, were at 7.4 percent.

“Although unemployment in Colorado fell in recent months, unemployment is still up when compared to last year,” said Gordon Von Stroh, professor of business at the University of Denver, and the report’s author. “In Grand Junction, for example, where vacancies are up quite a bit, the unemployment rate rose from 3.7 percent to 8.2 percent over the last year.”

However, the apartment vacancy increase was more  modest than expected.

Von Stroh said the consensus of most experts earlier this year was that the vacancy rate would rise to 10 percent by the summer, but it never hit those levels.

And although there are fewer people in the workforce than earlier this year when the unemployment rate was higher, he said the falling unemployment rate provides the confidence that the market is improving, making people more willing to sign leases.

Colorado’s unemployment rate in September was 7 percent,  compared with 5 percent a year earlier, but down from 7.3 percent in August. By comparison, the overall U.S. unemployment rate was at 10.2 percent in October and 9.8 percent in September.

“Unemployment in Colorado dropped, and most people did not think that was going to happen,” Von Stroh said. “The unemployment rate has dropped significantly, and the vacancy rate correlates very strongly with the unemployment rate. The unemployment rate dropping provides sends a strong psychological message. People says I’ve been living too long in my parent’s basement or I’m tired of having a roommate, and so they go out and rent an apartment.”

Terrance Hunt, a broker with the Denver office of Apartment Realty Advisors, agrees.

“The confidence factor is very important,” said Hunt, noting that vacancy rates typically drop from the second quarter to the third quarter, not rise as they did.

Still, he expected a vacancy rate of about 9 percent, not 7.4 percent.

“I think people who had seen a lot of layoffs at their companies and have survived all of the cuts, think they must be pretty valuable to the company and there’s a pretty good chance they will not lose their jobs,” Hunt said. “So they now have the confidence to move out of mom and dad’s basement and get their own place.”

However, he said it is possible – and even likely – that vacancy rates will rise in the fourth quarter from the third quarter, as they tend to do for seasonal reasons.

“But this is a great indicator for 2010 showing signs of recovery,” Hunt said. “The state is still adding households and little supply is being added to the market, which bodes very well for 2010. I think we will then start being able to get down to the 5 percent or 6 percent vacancy levels.”

In general, a vacancy rate of 5 percent is considered to be the “equilibrium rate.”

Colorado Springs was the only metropolitan area where vacancies fell. Experts note this is likely due to recent troop arrivals in the region which has led to an increased demand for housing in the area.

Average rents were flat or falling in many areas of the state from the third quarter of 2008 to the same period this year. Rents fell in Colorado Springs, Greeley and the Fort Collins/Loveland area. In spite of increases in the vacancy rate, however, some areas reported rental increases. Average rents increased from $514.17 to $554.58 year over year in Pueblo, and they rose from $670.24 to $674.31 in Grand Junction during the same period.

In non-metropolitan areas of the state, average rents rose in Alamosa, Buena Vista, Durango, Ft Morgan/Brush, Glenwood Springs, Montrose, Sterling, Summit County and “Southeastern Colorado.” Rents were flat or falling in Aspen, Cañon City, Eagle County, Gunnison, Lake County, Salida and Steamboat Springs.

“It’s difficult to raise rents in the current economic environment, and we’ve seen rents fall in several metro areas including the Denver metro area, which is certainly good news for renters” said Ryan McMaken, a spokesperson with the Division of Housing. “Many owners who are trying to cover the increasing costs of apartment ownership will continue to raise rents where they can. But this carries the risk of increasing costly turnover, so it’s a balancing act.”

The Vacancy and Rent Surveys are a service provided by the Colorado Division of Housing to renters and the multi-family housing industry on a quarterly basis. The Colorado Vacancy and Rent Survey reports averages and, as a result, there are often differences in rental and vacancy rates by size, location, age of building, and apartment type. The report  is available online at the Division of Housing.

Related Posts:

• Bullish outlook for Colorado’s apartment markets
• Apartment vacancies rise statewide
• $8,000 tax credit may be non-event for Denver apartments
• Shadow market drives vacancies in mountains
• Colorado's apartment vacancy at 7.9 percent