A disappointing number of sports stars plow their money into poor investments. Not Wally Dallenbach. In the early 1970s, the legendary Indy car racer took his winnings from the California 500 and bought an absolutely stunning piece of property along the banks of Colorado’s Frying Pan River just outside Basalt. In the 35 years since then, Wally and his wife, Peppy, not only raised a family but they also bettered the lives of thousands of Coloradoans through their own amazing race, the Colorado 500.

Learn their story and take a tour of this one-of-a-kind property HERE.

Related posts:

1. Sold! Boot Jack Ranch Goes for $47 Million
2. For Sale: Lonesome Duck Ranch & Resort
3. Historic Dahlstrom Ranch Conservation Easement Finalized
4. Crossing the Divide with Al Biernat
5. On the Block: Aubrey McClendon’s 271 Ranch

One of the country’s premier listings, Colorado’s Boot Jack Ranch, sold earlier this month for $47 million. Originally listed at $88 million more than two years ago, the price had been subsequently lowered to $68 million. The Pagosa Sun reports a sales price of $47 million, a reduction of almost 50 percent off the original asking price.

David and Carol Brown were the sellers. According to listing broker Bill Fandel of Peaks Real Estate Sotheby’s International Realty in Telluride, the buyer is a Colorado L.L.C. owned by a high net worth individual who plans to keep the Boot Jack intact and not develop it. “We hoped that the buyer would be an end user who would really want to preserve that valley. That’s definitely the case,” says Fandel.

Set at a base elevation of almost 8,000 feet about sea level, the Boot Jack features unmatched views of the San Juan Mountains, world class fly-fishing, and numerous improvements. The 3,151-acre tract is surrounded on three sides by the San Juan National Forest and Weminuche Wilderness and includes seven miles of the West Fork of the San Juan River and Wolf Creek. Two existing conservation easements total 1,322± acres. Six lakes and several ponds all connect to the San Juan. The main residence is a four-bedroom 13,825-square-foot sanctuary with countless amenities, including a library, two private offices, seven fireplaces, and a 1,500-bottle wine cellar. Four additional log cabins accommodate up to 18 guests. Structures on the ranch total 77,200 square feet.

One of the most important assets of the Boot Jack are its senior water rights of 103± CFS, which would yield approximately 70 million gallons per day when fully utilized. At present, 1,162 acres of pasture are irrigated. The ranch enjoys 200 inches of snowfall annually and is situated in close proximity to Wolf Creek Ski Area via U.S 160. Plentiful wildlife roam the ranch, including bear, elk, deer, and turkey; approximately 800 head cattle are pastured each summer.

“There’s a lot of listings out there but only a few truly remarkable pieces of property come on the market,” says Fandel. “The Boot Jack was one of them.”

Read the Pagosa Sun report HERE.

Related posts:

1. Historic Dahlstrom Ranch Conservation Easement Finalized
2. For Sale: Hall & Hall Lists Montana’s N Bar Ranch
3. For Sale: Colorado’s Dallenbach Ranch
4. Crossing the Divide with Al Biernat
5. $500 Million Everglades Deal Postponed Again

BY TREY GARRISON
PHOTOGRAPHY BY GUSTAV SCHMIEGE
PUBLISHED SUMMER 2009

But Creede is no backcountry village. A tiny little Whoville of sorts, Creede boasts a slew of incredible little restaurants, art galleries, and the Creede Repertory Theatre, which has won acclaim from high-minded New York drama critics. The hunting is so rewarding that people wait years to get a permit to stalk elk, moose, and other trophy critters. The fly-fishing on the Rio Grande and its tributaries attracts anglers from around the world. And just four percent of the land in Mineral County is privately owned. The rest is controlled by the U.S. Forest Service.

Enter Al Biernat, a self-made success who worked his way up from bussing tables at the Palm Restaurant in Los Angeles to running the Palm’s Dallas locale as its GM. When a lease came up on a prime piece of Dallas real estate, he signed on the dotted line and created the dining establishment that now bears his name.

Creede was a dream come true—a place of solace, relaxation, and recreation to share with his family and friends—so he and his wife, Jeannie, bought a 30-acre plot in a delicate Alpine zone at 10,600 feet. The land is regulated by the Mineral County Alpine Zoning Commission, and Biernat has a thick stack of regulations to prove it. Everything from the size of structures to the materials he could use is spelled out. Surrounded on three sides by Forest Service land, he believed his cherished investment would be protected from the over development that has plagued other Colorado towns.

Since 2005, Biernat has put a substantial amount of his hard-earned cash into his cabin and the surrounding property. “It seemed the perfect little secret place,” Biernat says. “I had no idea what could be coming.”

But he should have.

Until the mid-1980s, Creede was a mining town, site of Colorado’s last big silver strike. Since then, however, the only miners have been tourists, picking up bits of quartz and the occasional fleck of pyrite (better known as fool’s gold). Biernat was positive this peaceful oasis was immutable.

He was so sure of it that he believed mining could never come back. That’s why he signed his deed, despite a standard print disclaimer and warning right above the signature line stating that he was not buying the patented mineral rights to his land. And yet, from 2007 through the end of 2008, mining returned—exploratory mining for untapped veins of nickel, silver, lead, and gold.

The prospect sent Biernat and a good number of local landowners into a tailspin of worry and doubt. They weren’t just concerned about the light and noise pollution from drilling operations or the heavy truck traffic on narrow, winding passes. Biernat was in a bind because while he owned the surface rights to his property, someone else owned the patented mineral rights. And the implications are enormous.

Different parties often own the surface and the subsurface rights. These interests may have been created through the reservation of the minerals by the government or may result from a decision by a landowner to sell their mineral interests.

Mining claims are initially unpatented claims, which give the right only for those activities necessary to explore and mine. Much as farmers could obtain title under the Homestead Act, miners can obtain a patent (a deed from the government). The owner of a patented claim can put it to any legal use. Bottom line? If extractable ore were found beneath his property, the subsurface rights owner can force landowners such as Biernat to sell.

Beyond that, full-scale mining would shatter the sanctity of the Continental Divide. Biernat’s 1,000-square-foot, loft-style cabin is something out of a Ralph Lauren catalog. It’s cozy, rustic, gorgeously decorated, and at night you get a better view of the stars than the Hubble telescope.

Biernat had planned to build a larger cabin and turn his existing one into a guest house. He had already added a barn-style garage for his truck, his ATVs, and the snowmobiles that are the only way to and from the cabin in winter. Needless to say, the return of mining put an end to Biernat’s construction plans. But to many longtime locals, another possibility loomed:

Was their dream of mining going to come true?

After the closure of the last active mine in 1985, Creede recreated itself as a tourism hub. But tourism is a fickle trade, which even opponents of mining admit. Ed Vita, an ex-techie who moved to Creede to get away from the rat race, owns two businesses in Creede. In the winters he runs San Juan Snowcat, and he owns the popular Old Miners Inn, where you can enjoy a mean pizza and the requisite adult beverage.

We sat outside on the inn’s upstairs deck, and Vita admitted he tentatively supports the return of mining. “It’s all exploratory. Until I see the numbers and the contracts, I’m not counting on anything. I know there will be some impact on the tourist industry, but it can be hard surviving here in the winter months when it’s just the 400 locals circulating the same dollars,” Vita says.

But businessmen like Avery Auger, president of Creede America Group, love the idea of mining coming back to Creede. Creede America is developing custom homes that start in the $300,000 range. Auger is not concerned about mining. In fact, he expects to draw potential buyers from the mining operations, at least from among those in management and high-tech positions that command six-figure salaries. His development overlooks Creede and is protected by an earthen berm that blocks sight and dampens noise. “This town needs this kind of business to grow,” Auger says. “This is only going to increase property values and bring money this town needs.”

Brian Egolf agrees. Egolf first came to Creede with his grandfather when he was only two years old. As years passed, Egolf thought someday he would relocate to Creede permanently. After finding his way he watched the mines close. He swore one day he would reopen them.

Over the last decade, Egolf gathered patented mineral rights for large swaths of land around Creede. A savvy businessman, he knew that the depressed price of minerals wouldn’t last forever and approached Idaho-based Hecla Mining. Egolf wanted Hecla to come to Creede, test the mines, and, if profitable, oversee production.

“I’m really hoping that we can revitalize Creede, so that people can stay and earn a good living and that their children won’t leave as soon as they graduate high school, because there will be opportunities here,” Egolf says.

Hecla’s exploratory plans called for three years of exploratory mining in a 36-square-mile area, an investment of more than $12 million. But when mineral prices declined, Hecla suspended operations. Although it promises to resume exploration in the near future, many in Creede are doubtful it will return anytime soon.

That’s no relief to Biernat, who is still considering a new house, a new well, and solar power. If commodity prices rebound, mining could come back. “Do I put the money in and risk losing my investment?” Biernat asks. “I don’t know.”

Active mining operations around a recreational retreat could drive down property values long before Hecla might acquire Biernat’s cabin. Although it’s appraised at $550,000 right now, it would be worth much less if mining resumed.

When Biernat first saw his land, everything convinced him his investment would be protected. Set in an Alpine zone, it is surrounded by Forest Service land. Brokers emphasized how mining was dead and that the town had been reinvented as a cultural and recreation hub. But unless an area is declared a wilderness, the U.S. Forest Service allows activities on federal land like mining, timber harvesting, and grazing.

To be fair, the fact that Biernat would not own the patented mineral rights wasn’t exactly in fine print. Biernat is a smart businessman and took a risk. And, he admits, despite all his anxieties, he doesn’t think he’d do anything different.

“I knew I was taking a little bit of a gamble,” Biernat admits. “I should have read things more closely. But I’ll be honest. If I could go back and do it again, I would, no matter what the stress and worry has been. Just the memories I built with my children and my wife make it worth it. I just wish I could be sure our investment would be safe over the long haul.”

While some of the specifics of his case are unique to Colorado law, the issue of patented mineral rights is a federal one. From coast to coast and everywhere in between, the potential for profit from subsurface minerals means that if a landowner hasn’t secured those rights, it could place their investment at risk.

Caveat emptor should be every landbuyer’s watchwords, even if they have competent lawyers and erstwhile brokers on their side. Should you find that dream spot, it just may not be possible to acquire the mineral rights to go with the surface estate. At that point, you have to measure the risk, and decide if it’s worth it.

For Biernat, it most definitely has been. But it’s not something he takes lightly. Every time he talks about the issue, you can see the concern etched on his face and the troublesome pall on his otherwise optimistic visage.

“I love that town, I love the fact that it’s an artists’ community, and I love the people,” he says. “It’s taken me so long to really start to fit into the town, and I’d hate to have to leave it. But I’m blessed. I have that option. What about the guy who doesn’t have that choice?”

Related posts:

1. Join The Land Report at Al Biernat’s This Thursday Night
2. Sold! Boot Jack Ranch Goes for $47 Million
3. For Sale: Colorado’s Dallenbach Ranch
4. Land Report 100: No. 62 Clayton Williams Jr.
5. Northeastern Landowners Get $165M For Natural Gas Rights

A well-known Rocky Mountain landmark, Colorado’s 470-acre Perry Ranch, sold for $11 million ($23,000+ per acre). The sellers paid $13 million for the Routt County ranch in 2007 intending to improve it and then market it as a conservation development property, but last year’s recession squelched those plans. Hall & Hall’s Brian Smith in Steamboat Springs represented the seller. Tim Casey of Mountain Marketing Associates in Breckenridge represented the buyer. The transaction closed on June 30.

The original asking price of $25 million dropped to $19.5 million and then to $16 million last year when the economy tanked. “This sale is very indicative of what we’re now seeing: 15 to 25 percent off market highs,” says Smith, referring to the spread between the sellers’ purchase price in 2007 and the 2009 sale.

“Buyers who are not trying to pinpoint the bottom of the market can find all sorts of opportunities. A lot of sellers, particularly those with a higher basis in a property, are recognizing current market conditions and adjusting their asking price,” says Smith. “What made this property such an outstanding opportunity was the size of the parcel and its proximity to downtown Steamboat Springs. The south fence line is literally one mile to the city limits. One minute you’re tucked away by yourself in a lush little valley with aspen groves and Soda Creek. Hop in your truck and five minutes later you’re on Main Street. Best of both worlds. It’s extremely difficult to find that combination near a resort town, whether it’s Steamboat, Vail, Aspen, Telluride, Jackson, or Sun Valley.”

Related posts:

1. Sold! Boot Jack Ranch Goes for $47 Million
2. For Sale: Hall & Hall Lists Montana’s N Bar Ranch
3. For Sale: Colorado’s Dallenbach Ranch
4. Ask the Expert: Andy Smyth
5. Historic Dahlstrom Ranch Conservation Easement Finalized

 CNL LIFESTYLE PROPERTIES ADDS
JIMINY PEAK MOUNTAIN RESORT
TO SKI MOUNTAIN PORTFOLIO

(ORLANDO, Fla.) Jan. 28, 2009 – CNL Lifestyle Properties, Inc., a real estate investment trust (REIT) focused on lifestyle properties, announced today its acquisition of Jiminy Peak Mountain Resort, the largest ski and snowboard destination in southern New England. CNL Lifestyle Properties is purchasing the Hancock, Mass. property from Jiminy Peak Mountain Resort, Inc., for $27 million including all of the resort’s fixed assets. Jiminy Peak Mountain Resort, LLC, will continue to operate the resort under a 40- year lease including all renewals with CNL Lifestyle Properties.

Established in 1948, Jiminy Peak hosts more than 350,000 skiing, lodging, conference, wedding and mountain adventure park guests annually. In 2007, Ski Magazine ranked Jiminy Peak among the top five family resorts in North America. It is the only mountain resort in North America that generates 25 percent of its total energy needs using wind power, including about half the power used to run the snowmaking machines and chairlifts.

Jiminy Peak Mountain Resort, LLC, owned by Brian and Tyler Fairbank and Joseph O’Donnell is managed by Brian Fairbank, who has shepherded the mountain’s growth over the past four decades and will continue to be active in the day-to-day management of the property.

“As Jiminy Peak celebrates its 60th ski season this winter, we are pleased to add this family-favorite mountain resort to our portfolio,” said Byron Carlock, president and CEO of CNL Lifestyle Properties, Inc. “As this year’s record number of nearly 71,000 skier visits thus far demonstrates, Brian Fairbank has done an admirable job creating an award-winning destination. We are pleased to support Brian and Jiminy Peak Mountain Resort, LLC, in their ongoing management of the mountain resort.”

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1. Turner Renewable Energy Acquires Solar Power Project
2. Sold! Boot Jack Ranch Goes for $47 Million
3. Northeastern Landowners Get $165M For Natural Gas Rights
4. For Sale: Lonesome Duck Ranch & Resort
5. Ask the Expert: Andy Smyth

Sales numbers in Pitkin County totaled $1.37 billion (2008) versus $2.52 billion (2007). I tend to put more credence in these figures than the number of transactions because transaction totals include everything from land to condos and industrial space.

According to the Land Title Guarantee Co., which compiled the figures, last year’s totals were the lowest since 2003. Not surprisingly, the falloff has had an impact on local brokerages. Several have closed, and more than a few have downsized.

According to Land Title, a similar percentage drop occurred in neighboring Garfield County, whose county seat is Glenwood Springs. Total dollar volume fell 41 percent to $723 million.

Related posts:

1. Texas Land Values Drop Just 7% in 2009
2. Sold! Boot Jack Ranch Goes for $47 Million
3. Crossing the Divide with Al Biernat
4. For Sale: Colorado’s Dallenbach Ranch
5. $500 Million Everglades Deal Postponed Again

Salazar is no stranger to readers of The Land Report. As you may recall, the Colorado native has been one of the staunchest opponents of the Pinon Canyon expansion in the southeast portion of the Centennial State. The proposed expansion of the Fort Carson training ground includes doubling the size of a military exercise area by acquiring land owned primarily by locally owned cattle operations.

Salazar and his brother John, a U.S. congressman, are fifth-generation Coloradans who grew up working on a family-owned ranch in the San Luis Valley of Southern Colorado. After studying political science at Colorado College and earning a law degree from Michigan, he rose to political prominence as Colorado’s attorney general. He won his Senate seat in 2004.

Related posts:

1. For Sale: Colorado’s Dallenbach Ranch
2. Ask the Expert: Scott Jones
3. Crossing the Divide with Al Biernat
4. Land Report 100: No. 62 Clayton Williams Jr.
5. Sold! Boot Jack Ranch Goes for $47 Million

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.

Related posts:

1. For Sale: Lonesome Duck Ranch & Resort
2. For Sale: Colorado’s Dallenbach Ranch
3. Sold! Boot Jack Ranch Goes for $47 Million
4. For Sale: Hall & Hall Lists Montana’s N Bar Ranch
5. Ask the Expert: Andy Smyth

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.

Related posts:

1. Sold! Boot Jack Ranch Goes for $47 Million
2. IP to Sell 163,000 Acres for $200 Million
3. $500 Million Everglades Deal Postponed Again
4. For Sale: Colorado’s Dallenbach Ranch
5. Northeastern Landowners Get $165M For Natural Gas Rights

According to the Glenwood Springs Post Independent, the developer’s downfall was a “well-organized campaign” by neighbors. Vail businessman Greg Amsden told the newspaper that the investment group chose not to challenge the decision or submit a new development plan.

This online listing indicates that the Hunt Ranch includes 238 acres of irrigated hay and alfalfa as well as spectacular views of Mt. Sopris and surrounding ridgelines. The ranch sits 2.4 miles off Highway 82 and approximately 25 minutes from Aspen. The property has a water decree for 93 homes plus 155 acres of crop irrigation. Full studies including topo survey, soils, wildlife, & environmental.

Related posts:

1. For Sale: Colorado’s Dallenbach Ranch
2. Sold! Boot Jack Ranch Goes for $47 Million
3. For Sale: Lonesome Duck Ranch & Resort
4. Historic Dahlstrom Ranch Conservation Easement Finalized
5. On the Block: Aubrey McClendon’s 271 Ranch