Insider Insight: Patience Is Key

The value of patience was clearly evident in a recent transaction involving the sale of a 5,200-acre ranch near Hall, Montana. Fay Ranches represented the seller; a buyer came directly to us and we quickly had an offer on the table the first week of December for a cash closing before the end of the year.

It needs to be mentioned that our seller grew up on this ranch. It was his father’s place, and there was a strong emotional tie intact. As the reality of the looming sale set in, it turned out that our seller was not quite ready to let go.

As in most transactions these days, price was the biggest hurdle. The buyer was “all in” and pushing for a deal. The seller was not. We asked the buyer to give the seller the time needed to come to terms with the sale of his family’s ranch. We also encouraged both buyer and seller to stay engaged, and each obliged, taking small steps toward common ground. After six months of negotiations, they finally agreed to a price in May. During that time, we reached a stalemate on several occasions. At one point, there was no correspondence between the two parties for nearly a month. Even though it sometimes felt like this transaction would never come together, our team at Fay never gave up. Perseverance prevailed, and we successfully closed the deal in July.

“The strongest of all warriors are these two — time and patience.” - Leo Tolstoy, War and Peace

The buyer is now looking forward to autumn on his new ranch, especially the prospect of elk hunting in Montana. The seller is actively searching for a 1031 exchange property in Texas where he will spend more time with family. Each is now ready to start new chapters of their lives.

ABOUT THE BROKER:
Montana ranch broker Michael DeShore can be contacted through the Fay Ranches office in Missoula.

The Land Report Summer 2012

Did you know that the Supreme Court just issued a landmark ruling? I’m not talking about health care. I’m talking about land. That’s right, the high court came down 9-0 for landowners in a suit that was brought against the EPA by Idaho’s Sackett family.

We’ve been following Sackett v. EPA for over a year. It’s one of the many eye-opening stories you’ll enjoy in the Summer 2012 issue of The Land Report, now on newsstands from coast to coast.

You can access the digital edition free of charge HERE.

Our summer issue also features the story of an innovative gift to the University of Wyoming, one that kicks in when Wyoming’s River Bend Ranch sells. It’s a great example of stewardship, one that Greg Fay brought to us and that we are proud to share. Learn five great ways to add value and beauty to your land by improving your waters. And be sure to have a look at our third annual roundup of the nation’s leading auction houses. No surprise here … farmland prices continue to best record highs.

So be our guest and enjoy our latest issue HERE.

For more up to the minute reports on listings, auctions, sales, and breaking news pertaining to land and landowners, be sure to follow The Magazine of the American Landowner on Facebook, Twitter, and Pinterest.

P.S. Our award-winning quarterly magazine is available in a print version via subscription.

Sold! Montana’s Historic Horse Ranch

Nestled in the rolling hills of Central Montana, the historic Horse Ranch sold in December 2011. According to listing broker Mike Swan of Bates Sanders Swan Land Company, the ranch is “a rare combination of privacy, beauty, and scale in a contiguous block of deeded acreage that is very difficult to find in today’s western land market.”

Ryan Flair of Fay Ranches represented the buyer. The initial owners, a prominent Fergus County family,  began assembling this magnificent property in the 1880s to supply remount horses for the U.S. Cavalry.  The new—and only the third—owner of the Horse Ranch looks forward to continuing the land stewardship of these two preceding Western pioneers.

Comprised of 25,323± acres, this ranch contains sufficient hay meadows and summer pasture to comfortably run 700 to 750 head of brood cows on a year-round basis plus a full complement of heifers and bulls. The deep timbered draws and grassy plateaus on this property also provide prime habitat for the resident elk herds, trophy mule deer, antelope, wild turkey and upland game birds, including sharp-tailed grouse, pheasant and sage grouse.

Financial terms of the sale were not disclosed.

 

 

Land Report January 2012 Newsletter

Here’s a great way to start your year: the January edition of The Land Report newsletter.

This issue is chock full of stories and links to essential resources, including the Winter 2011 issue of The Land Report and of course January’s Land Report Top Ten.

As you might imagine, December wrapped up with a slew of end-of-the-year closings, and several key ones are detailed in the January newsletter, including the sale of Montana’s Horse Ranch and the sealed-bid auction of the Robert Mondavi Estate in Napa.

For more up to the minute reports on listings, auctions, sales, and breaking news pertaining to land and landowners, be sure to follow The Magazine of the American Landowner on Facebook and Twitter.

P.S. Our award-winning quarterly magazine is available in a print version via subscription.

Ask the Expert: Chip Lenihan

2011 Market Update: Chip Lenihan has been fly-fishing Colorado’s best waters for 40 years. His side gig? Running the Telluride office of Fay Ranches as lead broker. The Land Report turned to this former mayor of Telluride for an update on today’s recreational properties market.

Describe today’s market in one word.
Value.

How is that manifested?
Buyers are willing to sit back and wait until they get real value for their money.

Who’s driving today’s market?
The biggest part of my business is families. Men tend to drive the decision-making on hunting properties and ag land, and women trend more in the direction of resort sales, ones that are closer in to town and that feature more amenities. But come rain or shine it’s families who are looking to enjoy the sort of lifestyle you can only find out in the great wide open.

What’s been the biggest surprise of 2011?
The number of investors parking their money in land. The capital is out there. But after what happened in 2008, no one is in a hurry to put it in traditional markets.

Elaborate.
Five years ago, land was a hot commodity. Everybody wanted to get on board before the train left the station. And that brought a lot of buyers with short-term horizons into our market. Today, investors recognize the value inherent in current markets. A good number of them are looking at land as a smart buy, one with proven returns, long range stability, plus big upside from a personal standpoint.

Public land. Do buyers want to border national forest or BLM, or should they steer clear?
Great question. if you’re scouting a potential property and it borders public land, it’s absolutely essential to determine how intensely it’s used. Are you up against an unused corner of a national forest? Great. That will add a 10% to 20% premium to the value of your property. Does a hunting outfitter operate a base camp right across your fence line that’s going to bring in 25 guns for deer and elk season? Might not be your cup of tea.

For Sale: Colorado’s Dallenbach Ranch

Spring 2011 Pricing Update: Colorado’s 130-acre Dallenbach Ranch now offered for $21 million.

The year was 1973, and Wally Dallenbach’s racing career had shifted into high gear. Thanks to back-to-back-to-back wins for Patrick Racing on the Indy car circuit, he had the opportunity to fulfill his dream of buying a piece of property in Colorado. And as Peppy Dallenbach points out, it was definitely her husband’s dream, not hers. “I was perfectly happy back home in New Brunswick where our families lived,” she says.

Years before, however, Wally had promised himself that he and Peppy would make the Rocky Mountains their home. The seed had been planted in 1960 on their honeymoon when the couple made a stop in Aspen. “It was all hippies and dogs back then,” Wally says. The New Jersey native was already making a name for himself as a drag racer and a stock car racer; his open cockpit racing days were still to come. But already he knew that he had fallen for the small-town charm and scenic beauty that can be found a short drive down just about every road that crisscrosses the Colorado Rockies.

It would take more than a decade to fulfill that promise, but he finally closed on a beautiful old homestead just outside of Basalt in 1974. Thanks to more than half a mile of frontage on both sides of the Frying Pan River, a dozen cabins dotted its 100-plus acres. Known to anglers as the Wooden Handle, the breathtaking encampment had also served as base camp for hikers and hunters who roamed the millions of acres of the White River National Forest bordering the property.

“Growing up on the ranch was like growing up in Disney World,” says Wally Dallenbach Jr. Like his father and his brother, he pursued a career in racing, and his training ground was the mountains and valleys surround his family’s ranch.

“We rode dirt bikes in the summertime. We rode snowmobiles in the winter time. There was everything a kid could want to do. It was a great place for my sister and brother and I to grow up,” he says.

In the 1970s, Basalt was nowhere near the cosmopolitan getaway is has since become. Paul Dallenbach recalls “a whopping 400 people” living there when the family first arrived, and going to Basalt High School had nowhere near the cachet of archrival Aspen High School. “That’s all right,” he says. “We beat them in every sport they played.”

Like many overachievers, Wally brought his work home. In his case, it took the form of a Honda 350. One summer day, he loaded Wally Jr. on the back of that dirt bike, and the two took off for a great old mining town called Ouray. The next day father and son went over Engineer Pass to Lake City. If this sounds like too much fun, now you know where the Colorado 500 got its start. Since 1976, the charity ride has raised more than $1 million for the Red Cross, area schools, churches, and hospitals, and countless other beneficiaries. A Who’s Who in racing has showed up to ride, including Parnelli Jones, Rick Mears, Roger Mears, Roger Penske, a whole host of Unsers, and of course all the Dallenbachs.

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.

After 180 Indy car races, Wally’s career behind the wheel took a sharp turn; for the next 23 years he would serve as CART’s chief steward. Since his retirement in 2003, he and Peppy spend as much time as possible following the fortunes of their grandchildren. Although Paul and his wife, Dana, are right next door in Basalt, Wally Jr.’s family is in Texas and Colleen’s is in Indianapolis. Convenient airport connections have become a top priority.

With that in mind, the Dallenbachs decided to sell the ranch. Mark Weida, a suspension specialist who has worked on racing cars for 30 years, introduced the couple to Chip Lenihan, a great wit who proudly describes himself as “the last Republican mayor of Telluride.” In addition to being a longtime ranch broker, Lenihan had another equally important qualification. He is an avid fly-fisherman.

The Fay Ranches broker sees enormous upside. “The right investor can acquire this incredible piece of property and then recoup a substantial percentage of the purchase price with a conservation easement,” he says.

Another big plus is the ranch’s Eagle County setting.  “You’re right next door to Pitkin County, which is probably the most restrictive county in the Colorado. Everything from subdivision to structure size is strictly controlled through the county planning process. Eagle County also has a comprehensive planning department, but it is much more private property rights-oriented and much more smart growth-oriented,” he says.

One final attribute stands out. Says Lenihan, “It’s the lower part of the Frying Pan, so you’ve actually got a mix of trout that migrate up from the Roaring Fork. There are all sorts of little shallows and ripples, and there’s one deep pool that’s always good for a 20-incher.”

Try putting a price on that.

Take a tour of this one-of-a-kind property HERE.

Land Report Top Ten – March 2011

Here are America’s priciest properties for March. Dana Ranch, pictured here, is a landmark holding that has had just two owners in the last 95 years and is listed by Dave Johnson with Hall and Hall.

1. Rancho Dos Pueblos: $90 million
This impressive oceanfront parcel is on the market for the first time in three decades. Spanning 2,175 acres just west of Santa Barbara, California, it’s one of the largest remaining ranches along the breathtaking Gaviota Coast. The 2,000 northern acres are available separately for $19 million. Kerry Mormann & Associates has the listing.

2. Aspen Valley Ranch: $59 million
Billed as the largest ranch near Aspen in the Roaring Fork Valley, this ranch boasts senior water rights as well as over 800 acres and is located just 10 minutes from the Aspen airport. Joshua Saslove of Joshua & Co. has the listing.

3. Robert Taylor Ranch: $56 million
112 acres in Los Angeles’s tony Brentwood enclave. The expansive ranch house, which was designed by Robert Byrd, features 17 bedrooms and 17 bathrooms. Joyce Rey of Coldwell Banker Previews International has the listing.

4. Hana Ranch: $55 million
This 4,500-acre working ranch on eastern Maui surrounds the town of Hana. The property boasts two miles of Pacific oceanfront and rises 2,200 feet up the slopes of majestic Haleakala. Dan Omer of Island Sotheby’s International Realty has the listing.

4. Rockpile Ranch: $55 million
At the Rockpile Ranch, the Old West and cutting-edge range management blend seamlessly. For only the third time in over a century, this 55,374-acre cattle ranch in the Davis Mountains of Far West Texas has come on the market. Since 1992, the Rockpile has been owned by McCoy Remme Ranches (No. 51 on the 2010 Land Report 100). James King of King Land and Water is the listing agent.

6. Flying Dog Ranch: $46 million
This Aspen landmark sits on 245 acres that include nearly a mile of Collins Creek and Woody Creek. In addition, the Flying Dog has a great neighbor: the White River National Forest, whose two million acres feature some of Colorado’s top fishing and hunting. Lynne Kirchner of Amoré Realty has the listing.

7. Dana Ranch: $45 million
Over the last 95 years, this landmark holding has had just two owners. The Dana Ranch has won numerous conservation awards. The ranch supports 3,000 animal units on 59,000 total acres (45,000 deeded plus 14,000 acres of captive State leased lands). The profitable cattle operation also boasts extraordinary wildlife and fishery resources. Listed by Dave Johnson with Hall and Hall.

8. Craig Ranch: $43 million
This 838-acre ranch sits 20 minutes from Aspen, offers stunning views of the Elk Range, and features one mile of frontage on both sides of Woody Creek. Co-marketed by Mason Morse Ranch Company and Mason Morse Real Estate’s Aspen office.

9. Villa Montana: $35 million
Piecing together 500 acres in California’s wine country is an achievement in itself, one that only a pro such as Joe Montana could pull off. Included on the Hall of Famer’s estate are an equestrian center, a full-sized basketball court, a working olive farm, and a 9,700-square-foot Tuscan-inspired residence. Avram Goldman of Pacific Union International has the listing.

10. Dallenbach Ranch: $29 million
130 deeded acres surrounded by BLM and Colorado Division of Wildlife with Frying Pan River Frontage, Dallenbach Ranch is close to Basalt and Aspen Colorado. The ranch boasts Gold Medal private fly fishing on the Frying Pan with exceptional Elk, Big Horn, Mule Deer and Black Bear hunting. Fay Ranches has the listing.

For Sale: Montana’s Sun Ranch

The jury is still out on my definition of dream property, but I’ll tell you this: Montana’s Sun Ranch is definitely in the running.

Nestled on 18,000 acres just outside of Yellowstone National Park in the Madison Valley, the Sun Ranch ranges from 5,700 feet to over 10,000 and is a sterling example of what a true steward of the land can do with a spectacular piece of property. Almost 100 percent of the ranch is protected by conservation easements.

Three creeks – Sun, Moose, and Wolf – nurture more than a mile of the Madison River, which weaves its way through the property. Needless to say the fishing is out of this world. Elk, deer, bear, antelope, and sheep cross this country going to and from Yellowstone. Throw in a beautiful main residence, and this prime parcel is for sale at $55 million. Fay Ranches has the listing.

According to New West,the owner, Roger Lang, is looking to unload the ranch and free up capital for other conservation projects. According to the article, it looks like he has in mind a development similar to what Russ Maytag has done in Colorado at Maytag Mountain Ranch.