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Sold! Montana’s Yellowstone Club Goes for $115 Million

Eric OKeefe — Tue, 19 May 2009 07:00:04 +0000

CrossHarbor Capital Partners LLC paid $115 million to buy Montana’s Yellowstone Club out of bankruptcy court yesterday. The Boston-based private-equity firm agreed to pay $35 million in cash and assume $80 million in debt owed to Credit Suisse. CrossHarbor will also infuse up to $75 million in working capital.

CrossHarbor’s principal, Sam Byrne, is a Yellowstone Club member, and has been closely following its fortunes. In 2008, CrossHarbor attempted to acquire the club for $450 million.

According to the Bozeman Daily Chronicle, the sale capped a week of non-stop negotations in the court of federal bankruptcy Judge Ralph Kirscher. The only other bidder was Credit Suisse, which in 2005 loaned $375 million to Tim and Edra Blixseth, the now divorced couple who jointly founded the club.

As part of the final deal, Credit Suisse will be allowed to co-invest in the club with CrossHarbor. Credit Suisse also received additional assets, including Yellowstone Club real estate and a castle in France that the Blixseths had acquired. Unsecured creditors were recognized by the court as $19 million was set aside to pay local vendors, tradesmen, and others.

This marks the second major bankruptcy ruling in as many months involving Credit Suisse. In April the Promontory Club outside of Park City, Utah, sold to the Pivotal Group for $30 million. Credit Suisse had put together a $350 million loan package for Pivotal, which it used to develop the resort community before seeking bankruptcy protection.

According to the CrossHarbor website, the LLC “is an active investor in the distressed securities market. We invest in a wide variety of securities including real estate loans, corporate loans, and structured securities that are suffering from stress including monetary and/or technical defaults.”

Read more at:
“Cross Harbor Wins Yellowstone Auction,” Bozeman Daily Chronicle, May 18, 2009.

Sold! Utah’s Promontory Club

Grant Gannon — Sun, 03 May 2009 15:33:58 +0000

Yet another twist to a story we’ve been covering out of Park City, Utah.

Last year, the Pivotal Group, developers of the 7,200-acre Promontory Club, threw in the towel and sought bankruptcy protection. At stake was more than $350 million in loans packaged by Credit Suisse as well as a choice swath of 7,200 acres overlooking Utah’s Park City.

In bankruptcy court last month, the Promontory Club failed to sell. Guess who ended up with it? An affiliate of the Phoenix-based Pivotal Group. That’s right: the developer who defaulted on $350 million in loans purchased the property out of bankruptcy. The price? $30 million.

The 7,200-acre property features luxury second homes situated around Pete Dye and Jack Nicklaus golf courses and world-class skiing in nearby Park City.

Read more at:
“Bankrupt Luxury Community Sold to Same Developer,” Associated Press, April 17, 2009.

Jeff Gordon to Sell Aspen Ranch?

Eric OKeefe — Thu, 22 Jan 2009 04:27:55 +0000

The Aspen Times is reporting that four-time NASCAR champion Jeff Gordon is under contract to sell his 2,000-acre Aspen ranch. The buyer? John MacDonald, a Dallas developer who created the Dallas National Golf Club. According to the report in the Aspen newspaper, Gordon bought the acreage in 2006 for $9 million. No word on his sale price. The property is divided into two parcels: a 1,400-acre upper ranch, which will not be developed, and a 500-acre lower ranch, where the golf course is slated to be located. Gordon himself plans to retain 50 acres in the lower ranch and will receive several memberships in the proposed club.

More Details Emerge on the Crested Butte Mountain Resort Sale

Eric OKeefe — Thu, 11 Dec 2008 01:00:05 +0000

Last Friday’s sale of Colorado’s Crested Butte Ski Resort, part of a three-ski-area package acquired by CNL Lifestyle Properties from Triple Peaks LLC for $132 million, marks the second change in ownership for the Gunnison County landmark in less than five years. In 2002, Triple Peaks, which is owned by Tim and Diane Mueller, was set to buy Steamboat Springs Ski Area from American Skiing Co. (ASC) for $91.4 million, but ASC backed out. The Muellers perservered, however, and two years later they acquired Crested Butte from the Callaway and Walton families in March 2004. Here’s the official lowdown on last week’s sale, which was broadcast via email earlier today:

CBMR’s parent company Triple Peaks, LLC and CNL Lifestyle Properties, a real estate investment trust specializing in recreational assets, have entered into a 40 year sale-leaseback arrangement which means a robust financial position for CBMR and a continually improving experience for our guests. CNL has purchased the resort assets necessary for ongoing operations. In turn, Triple Peaks, LLC will lease back the operating rights to Crested Butte Mountain Resort, Okemo Mountain Resort and Mount Sunapee Resort. With initial discussions between the parties starting in earnest this past May, this partnership is perfectly aligned with recent rebranding, strategic initiatives, and leadership changes at CBMR.

As Diane Mueller said, “In these economic times this allows our three resorts to move forward. The bottom line is that the Muellers aren’t going anywhere. We’ve been in this industry twenty years and we’re passionate about it. We can now focus on ski operations.” With major capital improvements now in the planning stages, the acquisition gives Triple Peaks’ management additional capital to build the Red Lady Lodge here in Crested Butte and to construct a conference center and an additional 9-holes of golf at Okemo Mountain Resort.

With questions on the sale-leaseback arrangement, Scott Clarkson, VP of Sales and Marketing at Okemo Mountain Resort, answered it this way: “Given the capital and debt credit situation, a financial arrangement like this was able to happen because of the strength of Triple Peaks and the strength of CNL. Their financing is cash-based so they are not subject to the vagaries of the markets. For the resorts, we change from debt financing to equity financing. We’ll make lease payments to CNL rather than interest payments to banks.”

CNL Lifestyle Properties has a diverse portfolio of 115 properties including recently-acquired Big Sky, Montana and Northstar-at-Tahoe Resort among many others. Click here for a list of their portfolio.

The resort assets while owned by CNL, will be under the operational control of CBMR. Further, the Muellers still maintain ownership of the residences within The Lodge at Mountaineer Square, homesites in Prospect, some base area properties, and all of the undeveloped real estate previously in their portfolio. This will allow the Mueller Family and CBMR to participate in shaping the future of the area in a way that honors and enhances what makes this place special for those that live and visit here.

CNL Lifestyle Properties to Pay $132 Million for Crested Butte, Okemo, and Mount Sunapee

Eric OKeefe — Fri, 05 Dec 2008 14:36:00 +0000

CNL Lifestyle Properties, an Orlando-based real-estate investment trust (REIT) will announce today that it is acquiring Crested Butte Ski Resort in Colorado (pictured), Okemo Mountain Resort in Vermont, and Mount Sunapee Ski Resport in New Hampshire from Triple Peaks LLC of Ludlow, Vermont. According to The Wall Street Journal, CNL will pay $132 million for the three ski areas, which Triple Peaks will continue to operate.

According to its website, CNL Lifestyle Properties invests in income-producing properties with a focus on lifestyle-related industries. The company acquires properties and leases them primarily on a long-term, triple-net basis. CNL Lifestyle Properties intends to invest in properties with the potential for long-term revenue generation based on demographic trends, associated concentrations of wealth, and other proprietary underwriting models.

CNL Lifestyle Properties is one of the nation’s largest owners of golf properties with a golf portfolio comprised of 52 properties throughout the United States. In March 2008, the REIT announced the acquisition of three Virginia golf courses from Traditional Golf Properties. Two of the acquired golf courses, The Crossings located in Glen Allen, Va., and Kiskiack located in Williamsburg, Va., are semi-private courses. The third course, Broad Bay located in Virginia Beach, Va., is a private club.

More Coverage on the Yellowstone Club Bankruptcy Case

Eric OKeefe — Wed, 03 Dec 2008 15:36:07 +0000

It wasn’t two years ago that every media outlet known to man was clamoring over one another to give more column inches to the biggest, gawdiest monstrosity in the West: the Yellowstone Club’s record-breaking $155-million home. Though we’ve banged the drum on many an occasion, I’m pleased to say The Land Report did not jump on that bandwagon. But we readily admit to watching the feeding frenzy as those same news channels cover the demise of the elite enclave, including these two incisive reports.

As far as backstory goes, no one knows it better than the fine folks at New West. Based out of Missoula, these guys describe themselves as “a next-generation media company dedicated to the culture, economy, politics, environment and lifestyle of the Rocky Mountain West,” and they’ve been on this story from day one. Although this report is three weeks old, it goes into great detail about the financial woes, the legal wranglings, and the principal players.

The New York Times has also been regularly reporting on the Yellowstone Club, and this weekend it continued its coverage with an article that gives a more regional perspective on the boom-and-bust cycle surrounding the entire enterprise. It’s especially worthwhile to notice that the writer picked up on several of the other recent resort bankruptcies, including one we covered: Park City’s Promontory Club.

Tiger Woods Debuts His First U.S. Course in North Carolina

Grant Gannon — Thu, 13 Nov 2008 13:10:42 +0000

When it comes to golf course design, the Big Three has now become the Big Four. Developers looking to entice buyers with courses designed by Jack Nicklaus, Tom Fazio, and Robert Trent Jones can now add Tiger Woods to the list of potential designers.

Woods debuted his plans for his first U.S. design over the weekend in North Carolina. According to the Asheville Citizen-Times, the course will be part of the new High Carolina from Cliffs Communities in Fairview and is scheduled to open in 2011. Approximately 1,000 to 1,200 homes are planned for High Carolina. Lots will range in price from $500,000 to $2 million.

The arrival of Woods gives developers an extremely marketable name to entice high-end buyers in the competitive world of resort development. While upper tier markets haven’t slowed as much as the rest of the country, Monday’s bankruptcy petition by the owners of the Yellowstone Club and a similar filing earlier this year by Utah’s Promontory Club show that no sector of the real estate market is immune from downturns and slow downs.

Throughout his professional career, Tiger Woods has chased Jack Nicklaus’s matchless record of 18 majors. As elusive as that has proven, catching up with the Golden Bear’s record as a golf course designer may be even more of a challenge. To date, Nicklaus Design has 337 courses open for play in 33 countries and 39 states. Nicklaus himself has been involved in the design of 269 courses. By comparison, Woods has only three designs in the works: one in Dubai, a second in Mexico, and High Carolina, his first U.S. design.

Does Tiger stand a chance of ever catching up with the Golden Bear? Let us know in the comments section below.

Developer’s Diary: Ute Lake Ranch

Eddie Lee — Mon, 20 Oct 2008 12:00:35 +0000

A couple of weeks ago my fearless editor and I hitched a ride on a single-engine prop from Denver’s Centennial Airport to Tucumcari, the heart of northeast New Mexico, for a visit to a great new resort development we had been hearing about.

Ute Lake Ranch sits on a picturesque palette along a 13-mile-long body of water within the spectacular bluff country of the High Plains. And it’s the water that strikes you. Ute Lake appears out of nowhere and demands your attention.

As we soon found out, along with the water residents will have a host of amenities to choose from. According to the developer, Carma US, the property boasts a one-of-a-kind, 8,000-yard golf course called TwelveShores, the first Nicklaus Design championship golf course to feature 12 holes that play along the water. No matter what your handicap or ability level is, this course is sure to please.

For fun on the water, residents can have the exciting experience of fishing for trophy largemouth and smallmouth bass, water-skiing, or jumping a wake on a jet ski. If you prefer a slower pace, then just coast into a quite cove or sail into the beautiful New Mexico sunset.

The community marina will host a world-class restaurant where residents can dine for the evening or grab a gourmet meal to go. As we found out first hand, Ute Lake Ranch offers the great outdoors in spades, with paths, parks, mountain-biking, hiking, hunting, and even horseback riding and a full-service equestrian center planned.

While on the trip we were spoiled by hosts Bruce and Muriel Hamon and their always-attentive Golden Retriever, Cinnamon. Not only is Bruce a partner in Ute Lake Ranch and principal in Hamon Contractors, which is overseeing the development, but he is a true land enthusiast and an avid outdoorsman, equally at home on a dove field or offshore angling. That gave us more than common ground to tell some tales of fins, feathers, and fur over dinner on Friday night. The next day he drove me to the “Outback,” a favorite out back part of the 25,000-acre ranch that features unbelievable vistas and historic points of interest.

RESIDENCES AT UTE LAKE RANCH
We received a thorough tour of the two different residence plans currently being offered at Ute Lake Ranch — the Estate Lots and Eighteen62, the patio homes community.

The Estates at Ute Lake Ranch are one-of-a-kind lots located in the sculptured sandstone bluffs that offer full views of and access to Ute Lake. Perhaps the most sought after lots currently available in the Southwest, each lakefront custom home site ranges from 1.5- to 5-acre parcels and prices start in the $200,000s.

Eighteen62 at Ute Lake Ranch speaks to that promise of long ago. It will embrace the spirit of community that gave hope to the early settlers, while at the same time laid the foundation of a legacy to leave to future generations. The quality-crafted patio homes with lots starting at $67,500 will offer views of the golf course and the lake as they are carefully positioned throughout the Nicklaus Design championship golf course.

A decidedly contemporary community that has not abandoned its historical roots, Ute Lake Ranch is steeped in the history and romance of a West once far gone but never forgotten. The assurance of land that was granted to the pioneers in the Homestead Act of 1862 was a gift that spoke to the soul of the people – and that was the need to put down roots, to have a place to call your own. We think Ute Lake Ranch would be a great place to put down roots.

The development is just minutes away from I-40, the area’s main highway artery, a little over an hour from the International Airport in Amarillo, Texas; 193 miles from Santa Fe, New Mexico; and just 375 miles from Denver.

ABOUT THE DEVELOPERS
Carma US, a developer of residential master-planned communities, and Ute Lake Ranch, Inc. are jointly developing the Ute Lake Ranch golf and resort community, Carma has developed more than 80 master-planned communities in the U.S. and Canada over the past 50 years. Since 1958, Carma’s purpose and passion has been developing communities that people love to live, play, and work in.

The joint venture partners have signed an operating agreement with JC Resorts of San Diego, CA, which will oversee construction and operation of the community’s Nicklaus Design championship golf course and other resort amenities. JC Resorts is a leading resort operator in Southern California offering the finest accommodations, golf courses and customer service. Ute lake Ranch will be JC’s first resort outside of Southern California.

Please visit www.utelakeranch.com or call 877-UteLake (883-5253)

Park City Tops Hot Markets in the West

Grant Gannon — Sun, 27 Apr 2008 19:00:40 +0000

Open range, snow capped peaks, and beautiful views embody what many seek when searching for their first piece of property. One need look no further than the scenic American West when searching for this ideal piece of land.

The Rocky Mountain area continues to be a prime location for landowners seeking convenience and amenity in their purchase. John Pierce of Hall & Hall Ranch Sales says many looking to move to the Rockies do so because of the traditional resort ski areas.

“You have your resort communities and properties within reasonable striking distance of those ski communities. There are Jackson, Steamboat, Vail, and Aspen, those kinds of markets. You have your lesser known like Missoula, Livingston, Bozeman, those areas have been strong although they aren’t first and foremost known as ski towns,” Pierce says. “They are more known as nice communities within reasonable proximity of skiing but not known as a ski community.”

One area where Pierce says he’s seen the most growth is Park City, Utah. Names like Aspen and Snowmass are synonymous with skiing; cost and overcrowding have some potential buyers looking elsewhere.

“You’ve seen a lot of growth in the Park City area because of convenience. [An airport] hub like Salt Lake City where you’re 30 minutes into the mountains from the point you touch down is extremely convenient,” Pierce says.

Park City is 40 miles from the Salt Lake City International Airport while Aspen and Steamboat Springs are more than 180 miles from Denver International Airport.

“With commercial flight becoming more challenging, that’s a big part of it. You go into Denver, and it’s still quite a ways to the ski areas. It’s not as convenient as Salt Lake City with Deer Valley and Park City. That’s certainly an area where we’ve seen a fair amount of growth,” Pierce says. “Going to an Aspen or a Sun Valley; it’s that much more complicated.”

If there is property to be had, many willing buyers are there ready to scoop it up. Pierce says access is the key with many weekend warriors flying to their land from “the major money centers around the country.”

It’s a national draw so air travel is a must.

Still, Pierce says, there isn’t a slowdown in any ski resort communities in the area on the horizon. There will always be buyers for properties in the traditional ski areas.

Hall and Hall’s listings currently point to a high demand market. There are no properties in Pitkin County (Aspen) and only one property, an 876-acre retreat, in the Park City area.

A recent article in the Salt Lake Tribune says that home sales in the area are sagging with more than 2,600 homes priced in excess of $500,000 on the market. Acreage is harder to find however. The Wasatch Front MLS lists only 34 properties with more than four acres of land.

“We have definitely seen more funds coming into the marketplace place as potential buyers where they are looking at it as an investment,” Pierce says.

Promontory Club Seeks Bankruptcy Protection

Eric OKeefe — Tue, 25 Mar 2008 07:00:47 +0000

What a difference a mortgage meltdown can make. A few years ago, I was touring the high country meadows outside Park City with Jack Nicklaus and his design team as the Golden Bear crafted one of his Signature Courses at the Promontory Club. The latest amenity there? Chapter 11 bankruptcy.

The resort encompasses 7,000+ acres, and according to New West, where I sourced the story, 772 of 1,925 lots have been sold. I have yet to play the Nicklaus course, which opened in 2007, but I did get in a round on Pete Dye’s course with Jack’s Director of Communications, Scott Tolley. It was the last round of the day and the last day of the season. Needless to say at 8,000 feet above sea level it was the coldest round of golf I ever played.