New Lower Prices at Victory Ranch Club and Red Ledges

By Todd Anderson

Jul 01, 2010

Golf Course Development Projects Add New Lower Price Point Options Recent economic changes have led to some rethinking and new options at local private club golf course communities. Announcements have been made by Red Ledges and Victory Ranch that they will be offering new smaller clustered homes for prices less than that of some original lot sales. Victory Ranch Club will offer complete homes in the 1500-2100 square foot range with starting prices under $750,000. These homes will utilize local timber and stone with designs meant to blend in with the surrounding natural landscape and fit well within the Victory Ranch Club community. The current offering is for 11 semi-private homes on ¼ to ½ acre lots, three models are available. Similarly, Red Ledges has announced a partnership with Ivory Homes for the construction of smaller and more economical homes within Red Ledges. The Mountain Villas at Red Ledges by Ivory homes will offer 5 models (two single family and 3 attached) ranging from 1300 square feet to over 2600 square feet. Options will be available for finished basements and plenty of upgrades. The homes will be located along the 6^th fairway of the Jack Nicklaus Signature golf course which was recently named the best new private course by Golf Magazine. These new home offerings could be an indication that the developers are seeing a need for something other than 4000+ square foot second homes or they could be a sign of the new economic reality worldwide. Likely they are a combination of the two. Lot sales and construction of new homes at Victory Ranch and Red Ledges has been slower than the developers would like despite discounts of 30% or more and other sales incentives. With this addition, both of these golf and social club communities are now offering new product at a price similar to recent bank owned property listings at Promontory and Tuhaye. These new offerings will definitely make sense to more people both in terms of price and size. The impacts on other prices within these communities and other nearby similar communities is worth a discussion. To explore golf and social club home and vacation home opportunities contact a professional with http://youinparkcity.com/ .

Tags: development, Golf, homes, Park City, prices, Promontory, Real Estate, Red Ledges, sales, social club, Tuhaye, Utah, Victory Ranch
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Park City Failed Development

By Todd Anderson

Nov 11, 2009

The Park Record reported Saturday that a portion of the Black Rock Ridge Development outside Park City, Utah has been sold to the Talisker Company and is slated to become employee/affordable housing. Talisker owns the Canyons, Tuhaye, Empire Canyon and other properties in Summit and Wasatch Counties. Black Rock Ridge was slated to be a community of approximately 250 condominiums and townhomes ranging form 800 to 2000 square feet. The development offered its first completed models for sale in early 2008. Black Rock Ridge was promoted as affordable mountain style townhomes and condominiums in Park City, Utah. The development offered new construction homes at prices just below $300 per square foot. The product appeared well received, but the timing was poor. Black Rock Ridge is technically in Wasatch County and not Park City. This may have had something to do with its poor sales too as Wasatch County is outside of the nationally ranked Park City School District. Five unit sales in Black Rock Ridge were recorded across the Park City MLS. The remaining project was foreclosed upon by the bank this past spring. What will happen with the uncompleted common area amenities and future phases of the development is unknown. The Talisker Corporation purchased 26 of the unfinished units and has an agreement with Park City which will allow Talisker to use them (along with other concessions) to satisfy some of their employee and affordable housing components of the Empire Pass development. A Talisker representative was quoted as saying the company would sell the 9 townhomes at market value and the 17 condominiums when complete for $200K - $240K. The current owners at Black Rock Ridge will welcome some completion to the project, but are unhappy (to say the least) that the development will become "affordable housing" as the impact on their investment is decidedly negative. The location of Black Rock Ridge is less than 5 miles from the center of Park City making the area easily accessible. There are 2 other residential developments currently under construction in the area - Park's Edge and The Retreat at Jordanelle. There are also commercial development possibilities in the area which is home to Stock Building Supply. Presently the area is a bit of no-man's land and given the current economic state, it may be a while before this changes. The YouInParkCity.com group advises to carefully examine these and other unfinished Park City real estate developments before purchasing.

Tags: affordable, Black Rock Ridge, community, condominium, development, empire canyon, jordanelle, MLS, Park City, Parks edge, Real Estate, retreat, Talisker
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Developer Buys Promontory at Auction

By Todd Anderson

Apr 27, 2009

In the spring of 2008 creditors forced the Promontory luxury golf subdivision in Park City, UT into bankruptcy. The developer, Arizona based Pivotal defaulted on loans amounting to over $270M.

On April 15, 2009 a group named Pivotal 7000 headed by the CEO of Pivotal, Francis Najafi, purchased the development for a price far less than the debt on which Pivotal defaulted. The $70M bid by Najafi which was approved by the U.S. Bankruptcy Court effectively wiped out $275M in loans that had been packaged by Credit Suisse.

During the bankruptcy, Promontory maintained its operations which consist of two golf courses, clubhouses (golf, tennis, kids, outfitters, etc) an equestrian facility and more than 1000 building lots. The assets have been valued between $230M and $560M.

The new ownership plans to move forward with Promontory's original vision for the second home luxury community. While some property owners within Promontory may still have a bad taste for Pivotal, the fact that the development is no longer in bankruptcy and is being run by a company familiar with the project may be a benefit. Promontory's plan of reorganization binds Pivotal 7000, LLC, as the new owner, to observe key provisions of the court-approved plan and sale procedures. These provisions include the obligation to honor Promontory's county-approved master plan, the Promontory Club's membership agreements and membership plan, and the assumption of all lot purchase agreements with Promontory lot and home owners. In addition, provisions have been made in the plan for funding of legitimate unsecured creditor claims and the creation of a reserve fund for Promontory's homeowners' association, the Promontory Conservancy.

The stigma of bankruptcy and the relatively large number of speculative purchases and building that was done by private investors has hurt the market in Promontory. The luxury homes that are for sale in the Promontory area are currently some of the best values in Park City. Now may be a perfect time to invest or purchase a second home in a golf course community as the developer should be on much more stable ground for the near future.

On another positive note, Golf Digest just ranked the Jack Nicklaus and Pete Dye designed courses at Promontory as the number 2 and 3 courses in the state behind Glenwild (also in Park City).

Tags: auction, bankruptcy, development, Glenwild, Golf, homes, Luxury, Park City, Promontory, purchase, rankings, Real Estate, Ski
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Promontory Bankruptcy Auction Date Set

By Todd Anderson

Mar 22, 2009

Efforts to work through the Chapter 11 bankruptcy moved forward last week as it was announced that the Promontory Development will be auctioned off on the 15^th of April, 2009. Credit Suisse has opted to send the property and operations to auction rather than provide the $70 Million in exit financing mandated by the bankruptcy court. It is expected that Promontory will emerge from bankruptcy in April and the winner of the auction will be bound to observe key provisions of the Court-approved reorganization plan and sale procedures. The provisions include the new owner's obligation to honor Promontory's County-approved master plan, the Promontory Club's membership agreements and membership plan and the assumption of all lot purchase agreements with Promontory lot and home owners. With some luck, this will remove some of the cloud of uncertainty that has been over the development since it was forced into bankruptcy in March of 2008. The Promontory luxury golf, equestrian and "club" community of second homes covers approx. 7200 acres in the Park City Area with a master plan including 5 golf courses (2 are currently complete), pool, tennis, kids clubhouse, trails, outfitters cabin, ski resort amenities at Deer Valley and Park City Resorts and more (many of which are currently in place). The area includes over 1900 home sites. Of the 700 or so lots that have been sold, nearly 300 have homes completed or homes under construction. Many of the homes and lots were purchased and constructed during the Park City real estate boom. They have not escaped the current market downturn and the effects of the bankruptcy cloud over the development. There are currently over 100 lots for sale and nearly 90 homes in various states of completion. Many of the lots are offered at prices near or below their original sales price. There are 26 homes available for under $2 Million (I can recall a time two years ago when there was only one). If The Promontory development emerges successfully from this bankruptcy and is able to complete its original vision as a four-season, multi-generational luxury community, this may prove to be one of the best times to purchase. See the Promontory golf page of the YouInParkCity.com website for a couple of our favorites.

Tags: auction, bankruptcy, development, Golf, homes, Luxury, Park City, Promontory, purchase, Real Estate, Ski
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Talisker Completes Purchase of The Canyons Resort

By Todd Anderson

Jul 01, 2008

The 123.1 Million dollar sale of The Canyons Resort is reported to have been completed yesterday June 30, 2008. The purchase price is reported to have been $52.1 million in cash and $71 million in senior secured notes to American Ski Company. The sale should put an end to Vail Resorts attempt to purchase the resort although Talisker does retain an option to sell the resort at a future date. Talisker will assume responsibility for pending litigation by The Canyons Resort's former owner Wolf Mountain which claims that American Ski Company defaulted on its lease and that the property should go back to Wolf Mountain. Talisker plans to keep the current management team of The Canyons Resort in place with Mike Gore as the managing director. There are no plans currently for any major upgrades to the mountain as it is already too late in the summer and planning process to start improvements for the 2008-2009 snow season. There are currently plans for some access lifts to be completed this summer. Talisker officials stated that they will begin looking at the resort's development master plan soon. The sale of the resort includes as much as 3 million square feet of developable real estate located at the base of the resort as well as mid-mountain. Talisker will run the resorts 3700 acres under a lease agreement with Wolf Mountain (this lease is a major portion of what Talisker has purchased from American Ski Company). Talisker is a privately held corporation that owns over 10,000 acres in and around Park City. They are the developers of the luxury residences at the Empire Canyon area of the Deer Valley Resort as well as the Tuhaye golf resort just outside of Park City. The Canyons Resort has made great strides in recent years opening new terrain and offering new real estate opportunities in the Park City area. The sale of the resort to a luxury resort owner/operator should benefit the area and its surroundings. For information on how this may affect your property or future property aquisitions usr the contact us button at the top of the page.

Tags: Deer Valley, development, Luxury, Park City, Real Estate, Talisker, The Canyons Resort, Tuhaye
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