This just in ... Elk River Partners the developers of Marabou Ranch in Steamboat Springs, CO has sold all of their remaining lots to the Stolz Group in a bulk sale. Marabou Ranch is a luxury shared ranch community composed of 62 lots, with about 1,300 acres of shared common area. Marabou Ranch includes some amazing amenities including 2 miles of great fishing on the Elk River, extensive year round trails (hiking, biking, horseback and skate skiing), a stable of horses, 5 owner "Cabins", an amazing Lodge, pool area and more.
Lots in Marabou Ranch originailly sold for $2-5M and have recently sold for around $1M with one higher sale. They are pulling the listings for their lots tomorrow so there will be just two lots left on the market for now. They plan to hold them for a while to allow the market to recover but we don't know how long yet. This purchase should remove the developer's distress from the property and give it a chance to move forward. It's not particually low given the situation.
While the bulk sale price at $11.1M for 18 lots or $617K per lot is not what we like to see price wise it is what needs to happen when a distressed developer holds a lot of inventory they cannot move. Things only deteriorate until something like this changes the situation. Buyers are out there looking but it is hard to move forward when you wonder what the next sale will be at under bank pressure. We have seen this before in the Steamboat Real Estate market several times. The restructuring at OSP led to strong sales at prices that show people's confidence in our market. The Trailhead Lodge Auctions have no resulted in a building that is no longer in distress with 4 units left in the hands of Silverleaf and most of the surrounding land now in the hands of Meriwether Company.
All in all it is a long term postive for Marabou Ranch since it removes a distressed developer from the picture and a short term positive for the Steamboat Market as a whole. The remaining lots will have less competition while the Stolz Group waits for the market to recover to re-introduce their lots but will need to take the overall market into account. Marabou Ranch is pretty incredible and won't be duplicated so there is real value in lots out there.
UPDATE 3-28-13: Jeff Temple, the lead developer at Marabou Ranch, just sold his personal lot at Marabou Ranch for $1.15M today. It was under contract when the Bulk Sale closed so I was curious if the buyers would proceed. Seeing a market level purchase of a lot close for $1.15M within a week of the Bulk Sale is good news in my mind and illustrates the market value of a lot in Marabou Ranch for an individual sale. Jeff surely knew about the Bulk Sale so it must have been disclosed to the buyer or there could be some real exposure.
I'll update this as I know more but if you are an owner at Marabou Ranch or are interested in buying there you can call me anytime for more info, what this means for you and some ways this could play out going forward. Jon Wade 970-819-6930