Written by: Eric Saunders, Broker
The Mountain Village Condo market is coming back to life. One of the big challenges facing the Mountain Village market the last few years was an over abundance of new condo inventory. Prior to the recent Economic downturn, the Mountain Village condo market was brisk, with 80-100 condo sales a year and multiple projects in the ground and moving forward to completion. In 2008/09 there were 7 projects under construction and then the economy crashed. These projects have since gone back to the banks or investors have purchased notes from the banks at greatly reduced pricing. Of those 7 projects under construction before the downturn, four of the projects are back on the market and all are selling with great velocity. Castellina, a 4-unit project sold all 4 units in 2012. Elkstone 21, a 21-unit project, is almost 50% sold out with 9 units sold, and negotiating on a few others in just a few months of being released to the market. Pricing at Elkstone 21 has gone up 20%-25% since their re-release. Townhomes on the Creek has sold 70%of their inventory, or 10 of their 14 units in the first few months of reducing their pricing. Cassidy Ridge, a 20-unit complex, which was just released back to the market by the bank a few months ago has 4 units under-contract and scheduled to close in the next few weeks, and, they are negotiating on multiple other units. The pricing at all of these projects represented exceptional values in our market and in most cases, were below replacement cost. Cassidy Ridge is the only project left with inventory at below replacement cost. More than likely the bank will raise the prices after they start selling a few more of the units. So, if a new high-end luxury condominium at below replacement cost is what you are considering, then you need to act quickly, or these units will be gone.
The other 3 projects, Madeline, a 160 unit hotel with 60 condos and 100 hotel rooms, has units on the market at over $1,000 per square foot. Lorian phase III, a 6 unit project with condos in the 4,500-6,000 square foot range is scheduled to be completed sometime in the next year. Cortina, a 15 unit complex has received funding to finish the project and completion is scheduled for 2014. Units are currently priced in the $900-$1,000 per square foot range, which is well above the pricing at Cassidy Ridge and Elkstone 21.
If you missed the boat on the new high-end luxury projects, there remain tremendous values on other slightly older condos. In many of these, values are below replacement cost. In 2012 we sold 56 condos in the Mountain Village. To date, we have sold 39 condos with another 14 under contract and we are on pace to surpass 2012 numbers.
If you have been paying attention, you know that Telluride had its surge in 2012 and there are very few “deals” left in the town of Telluride. There are many deals in the Mountain Village condo market, but if you wait, then they likely will not be there when you decide to make the move, so giddy up!