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Monarch on the Park expects $100 million in sales
by Brent Gardner-Smith, Aspen Daily News Staff Writer
Thursday, January 10, 2008
The new Monarch on the Park condominium project is
expecting to realize $100 million in sales for the 14 condos in a new
building in downtown Aspen adjacent Wagner Park.
According to Rich Wagar, the listing real estate
broker and marketing director for the project, the project's
5,500-square-foot penthouse apartment, with direct views of Aspen
Mountain and large outdoor decks, is already spoken for - to the tune
of $16 million.
The project includes "entry-level" condos at
approximately 2,000 square feet going for about $3.5 million, and
"mid-level" condos at 3,775 square feet selling for $7.5 million, or
close to $2,000 per square foot.
Wagar noted that approximately $93 million in sales
have been rung up to date: Specifically, 13 buyers have put down 25
percent of the sales price of their Monarch on the Park condos, signed
non-refundable earnest money contracts, and committed to close on their
properties when the building receives its certificate of occupancy,
which is now scheduled for October.
The Monarch on the Park project was approved in
February 2006, along with the redevelopment of the Limelight Lodge
across East Cooper Avenue, which is also still under construction. The
free-market condos in the Monarch on the Park project were put forward
during the approval process as being economically necessary to allow
for the Limelight Lodge to continue to operate as a "moderately priced"
lodge.
Dale Paas, his sister Sue Woolery and her husband
Rick Woolery, have partnered with Denver developer Gerald M. Biehl to
build the Monarch on the Park and the new Limelight Lodge, but Biehl
will not be associated with the Limelight Lodge after it is completed.
"With that, we will still end up with a debt
service, but this is making it work," said Paas of the $100 million in
sales of the Monarch on the Park condos.
The new Limelight Lodge building consists solely of
125 hotel rooms that average slightly less than 500 square feet, and
the hotel will still be "moderately priced" Paas said. "We want to be
the hotel where the X-Games kids stay, where the rugby players stay,
where the Motherlode volleyball players stay, and that's always been
our intention," said Paas when asked to define "moderately priced."
"We want to build a hotel that our past guests will be really happy with," he said.
Paas's grandmother started the hotel in the 1950s,
and Dale Paas said he and his extended family hope to open the hotel by
next ski season.
THE MONARCH
The Monarch On the Park condos were designed by CCY
Architects of Basalt, whose principals include architects John Cottle,
Rich Carr and Larry Yaw.
The condos range from 3,000 square feet to 5,500
square feet. All but one are laid out so that all of the living space
is one floor.
"That's been popular," noted Wagar, a veteran Aspen
broker. "A lot of the townhomes in town include three or four levels of
stairs. After a long day of hiking or skiing, that's a lot of stairs."
The large condos also include multiple bedrooms.
"Buyers prefer four-bedroom units," Wagar said, because they allow for
families to gather under one roof. "The reason most people buy real
estate here is to create memories."
Wagar also pointed to the project's location just
across the street from the city's commercial core - and upvalley from
the congested roundabout - as another attraction to buyers.
"Every time another car is added to the mix,
everything on this side of the roundabout becomes more valuable," Wagar
said.
He added that, of the buyers, three have purchased
condos and plan to resell them at a higher price; one already owns a
home downvalley and plans to use the unit as an "in-town pad;" and the
remainder plan to use their units as second homes.
He went on to say that of the condos previously
spoken for, one has been put back on the market, as buyers do have the
flexibility prior to closing to reassign, or re-sell, their contracts
to other buyers.
Several local real estate brokers contacted
regarding the sales of the Monarch units said the prices sound
consistent with recent market trends, but also noted that until a sale
has officially closed, the price for a unit is not truly final.
Long-time Aspen broker Ed Zasacky said a client of
his committed to buy a 1,500 square-foot condo in the development for
more than $4 million long before the project broke ground, in part due
to the positive reputation of the development team, which also built
and sold Obermeyer Place in Aspen.
"They were substantial players, and people had
confidence," said Zasacky, adding that he fully expects his client to
close on his unit.
"That location is unique, and the opportunity to
pre-buy and finish it to your taste is pretty unique around here," he
noted. "For my people, it was just ideal."
The building includes three penthouses. The largest,
with 5,500 square feet of living space and a 3,000-square-foot rooftop
deck, has sold for about $16 million, Wagar said. "It has spectacular
views of the mountain with windows on three sides," he added.
The units went on the market in July 2006, and,
according to Wagar, the fact that almost all of them were pre-sold
illustrates how popular the project really is.
"When you can pre-sell your product, it takes a lot
of the risk out and can help you mitigate the cost," he pointed out.
"But you have to be perfect in your pricing. You have to leave a little
bit of your profit on the table for the buyer, to give them an
incentive to buy now, instead of waiting. And if you miss that by an
inch, you miss by a mile."
Monarch On the Park and the Limelight Lodge were
both approved by a prior, more development-friendly, city council
before limits on downtown development were increased.
"The city downzoned after we were approved, of
course, which enhanced the uniqueness of this property," Wagar noted.
"Our timing was critical in terms of the success."
bgs@aspendailynews.com
Pricey Feet
Christine Benedetti - Aspen Daily News Staff Writer
Thu 04/12/2007 04:01PM MST
Despite a nationally fluctuating real estate market, Aspen is still on the upswing, continually setting benchmarks and producing record-breaking deals. The most recent trend: residential units selling for prices that break down into more than $2,000 per square foot. Aspen broke the $1,000 per square foot mark six to eight years ago, local land brokers say, but these days $2,000 per square foot is becoming common and last autumn saw the sale of a Shady Lane property selling for more than $3,000 per square foot, according to Robert Ritchie, a broker at Coates, Reid & Waldron. "What that really tells me is that there are limited places in the world that the truly wealthy can go and be comfortable living there," said Ritchie. "Aspen is one of the few. ... It's a place where if they find something extraordinary for them here, they'll take it because you can travel all over the world and not find what's here." Ritchie said the Shady Lane sale was "significant," but the house, which is next to the Roaring Fork River, wasn't on a huge lot. What he considers shocking is a rumor that the buyer is going to tear down the house and rebuild. "It's hard to use that ($3,000 per square foot) as a benchmark as to where everyone is going," said Rod Woelfle, Aspen Board of Realtors president and a broker for Aspen Land and Homes/Sotheby's International Realty. "But we do have active listings for that $3,000 per square foot now." He added that properties like the Shady Lane house were hitting that mark, but because most of these types of properties were teardown homes, citing that figure as a market trend was somewhat misleading. Another West End house sold for more than $5,000 per square foot, but it was also a teardown and he says the value is a "land number," and not related to the structure. To start building a new house from scratch today - including land, materials, architecture, permitting and financing - would cost somewhere around $2,000 per square foot, if a luxury home were the goal, according to Ritchie. "What's happening is the truly rich are a lot richer," he said. Carol Dopkin, of Carol Dopkin Real Estate Inc., said she sold an Aspen Alps property that passed the $2,000 per square foot mark and she thinks that it's the new "benchmark for the summer season." Besides Aspen Alps, condominiums in Aspen Square and The Monarch are also selling for more than $2,000 per square foot. Their proximity to Aspen Mountain and downtown amenities makes these properties desirable. Last year, Aspen first consistently saw homes sell for $1,000 per square foot. In 2005, the average was $859 per square foot, according to the Aspen Board of Realtors. In 2006, that figure jumped to $1,103 and in 2007, to date, it sits at $1,258. Compare that with national averages and Aspen is about 10 times the norm. According the to 2006 Profile of Homebuyers and Sellers from the National Board of Realtors, the Western region had the highest national average price per square foot at $187 and the South was the least expensive at $98. But again, Woelfle says drawing square footage comparisons only goes so far. "If you compare Manhattan, and places where the properties are different, there are not a lot of 10,000-square-foot homes in Manhattan," he said. "Everything is vertical and smaller, so you can only compare price per square foot to a certain point." In London, Hong Kong and New York City, price per square foot is double - sometimes triple - what's happening in Aspen. The Associated Press recently reported London units selling for $6,000 per square foot, and $4,000 in New York. Realtors here in Aspen said they had heard similar reports, with those numbers sometimes hitting $10,000 overseas. "The differential between the haves and have-nots is growing and the haves want to be in Aspen," said Rich Wagar, of Wagar Real Estate Associates. But they also want to be in Vail. "I've been doing this for 37 years and we're behind Vail for the first time ever," said Wagar, noting that price per square footage can be more expensive in Vail. "I think there's easier access in Vail, and because Denver is just becoming a 'have' city - there's a lot more money in Denver." Basic Economics and Future Trends "The biggest factor is simple supply versus demand from a standpoint of, you can't grow Aspen much more, at any sort of rapid pace," said Woelfle. "We continue to see a large demand and really our supply can't continue to increase." With a minimal amount of vacant lots still available for development, and new code restrictions on those that can be, there's more want for fewer commodities. "Basically, Aspen changes not at all," said Ritchie. "There's no more land to be developed and no vacant lots. It's a town that's cute and quaint and first-class amenities, and will stay that way." There are no signs of slowdown either, said Wagar, Woelfle and Dopkin. Looking at trends in other markets - like London and New York - where Aspen may currently be lagging, has historically shown that the upper Roaring Fork Valley isn't far behind. "It goes in cycles," said Woelfle. "It will slow back down to a normal pace (at some point), but I don't see anything going in that direction." * Ritchie said it's something he's seen repeatedly before. During cycles in the '70s and '80s, he said, average home prices tripled and so far during this decade he thinks Aspen's prices are on pace to at least double. The baby boomer factor means that soon-to-be and recent retirees with extra money are buying more second homes. Ritchie said that Aspen is "one of the places they are going with their money." "It's a fascinating market," he noted. In Pitkin County, February sales were up 59 percent from the same time period in 2006, records show. The first two months of 2007 saw $445,821,900 worth of sales, compared $236,033,000 during January and February of 2006, according to Land Title Guarantee Company employee data compilation. "I've tracked high end markets, and it always leads to Aspen," said Woelfle. "I see no reason for history not to repeat itself." christine@aspendailynews.com
Aspen's Best People
Aspen's Best — People
By Aspen Times writer
September 2, 2006
Best realtor
We all know Aspen is overrun by real estate agents, and most of whom seem to have at least one fan in their corner. In fact, more than 30 different agents got at least one vote, and handful got two or three. Of course these are the people many Aspenites love to hate, so it's not surprising there was no landslide victory. But when all was said and done, BJ Adams took top honors with six votes and Rich Wagar came in second with five votes.
Aspen home buyers spend millions — in cash
Big deals don't mean big loans
By Janet Urquhart
August 30, 2006
Aspen's real estate may sell for astronomical prices, but the big deals don't necessarily translate into mega-mortgages.
In fact, multimillion-dollar homes are more likely to sell for cash, according to some local industry observers.
"It's staggering," said Charlie Bantis, senior vice president at Vectra Bank in Aspen.
The oft-repeated industry estimate is that 60 percent of the real estate sales in Pitkin County don't involve a loan, according to Bantis. "I have no reason to doubt it," he added.
But a tally of July transactions by Land Title Guarantee Co. in Aspen indicates 73 percent of the 108 recorded transactions for the month - or 68 percent - did involve loans.
It's generally buyers of local deed-restricted employee housing and others on the lower end of the resort's real estate spectrum, though, who appear to be seeking conventional home loans.
Wells Fargo Home Mortgage, the lender that handled the bulk of the loans in July, generally provides mortgages for Aspen residential transactions ranging from employee housing up to home sales of about $3 million, according to Jody Cooper, home mortgage consultant at Wells Fargo in Aspen.
Big-dollar transactions may not have a loan attached to the deed, but that doesn't mean there was no borrowing of some sort, Cooper added.
"A lot of transactions look like cash, but they're really not," she said.
That's true, according to local real estate broker Rich Wagar. Wealthy clients sometimes have a line of credit with their bank of choice and, in effect, arrange to borrow money for a short period, though no traditional mortgage is involved.
"Ninety-five percent of my deals do not have a financing contingency," Wagar said. That compares to roughly 10 percent when Wager was selling homes in 1970, he said.
Wager said he recently helped broker the purchase of a $520,000 condo at the Aspen Business Center that involved a loan, but has seen a $15 million deal close with a personal check for the full amount.
"It's just a drop in the bucket, cashwise - they can afford to write the check," he said. "It's hard to put it in perspective. It's a little like you or me buying a sweater. You don't take out a loan to buy a sweater."
Ed Foran, a broker with Mason & Morse Real Estate, said he, too, sees all-cash deals, though he offered no guess as to what percentage of residential transactions overall take place sans financing.
"It's completely anecdotal, but I do think you see a higher percentage of all-cash sales in Aspen than, say, Basalt," he said. "Yeah, there's definitely a lot of money in Aspen."
Buyers who can plunk down the cash for a multimillion-dollar purchase have an advantage in the resort's hot real estate market, Wagar added. If there's no financing, a deal can't fall apart on a financing contingency. "It buys favor in the seller's eyes," he said.
If the cash purchases are putting a crimp on the lending business - "lots and lots of mortgage lenders fighting over a few loans," as one banker put it - Cooper says she hasn't felt it.
"Everybody is hopping busy," she said. "I would say most lenders you talk to in this town are busy."
Wells Fargo, for one, arranges financing for real estate deals up and down the Roaring Fork Valley, and the market is booming, Cooper noted.
But Wagar said he hears lenders lamenting the big buys for cash.
"They complain that I only send them the small business, but it's because the big deals don't get loans," he said.
Janet Urquhart's e-mail address is janet@aspentimes.com.
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