CLOCKTOWER DEVELOPMENT Offered For Sale In 2 Parcels | $7,850,000.00 1.82 Acres | 12,500sf Office & Retail Space
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CHRIS SIAS Colorado Group Realty Broker 970.819.5543 Chrissias@mybrokers.com
Introduction
Table of Contents EXECUTIVE SUMMARY • Offering Terms • Alterra Mountain Company • Development Opportunity THE PROPERTY • Sites • Commercial Condominiums • Concepts THE MARKET
• Steamboat Springs - Market Information • Steamboat Springs in the Media The Paoli Group has been retained on behalf of the Owner to offer for sale Clocktower Commercial Condominiums and Development Parcels ("The Property") located at and around 1724 Ski Time Square in Steamboat Springs, Colorado. This approximately 1.82 acre property with 12,500 square feet of commercial space is located adjacent to the Steamboat Springs Ski Area, recently acquired by the Alterra Mountain Company and a perennial Top 10 Ski Resort in North America.
Alterra Mountain Company Ski Area – Steamboat Ski Area has a grand history and reputation among American resorts, and ranks fifth in overall visitors. Recently acquired by Alterra Mountain Company, Steamboat Springs is poised to benefit from the marketing strength of a company that includes Aspen, Deer Valley, Mammoth Mountain and Squaw Valley, among others. A new Ikon season pass, anticipated in the 2018/19 season will bring new and more affluent visitors to Steamboat Springs and is expected to drive investment and development at the base area, tremendously benefitting the few remaining development properties, including the Clocktower. Steamboat has a well-earned reputation as a great town to live in, and has seen an influx of professionals and location neutral workers bringing new trades and higher incomes to the Yampa Valley. With schools ranked among the best in the state, low crime and incredible amenities, Steamboat is a premiere destination both for vacationers and those who enjoy flexibility in their work. Among more traditional work, Steamboat enjoys very low unemployment, a diversified economy and a healthy mix of ages and demographics. While some mountain resorts see great disparities between seasons, Steamboat Springs has robust summer visitorship nearly on par with winter numbers. People travel from Denver and the Front Range, as well as Utah, Wyoming and points south. The Chamber of Commerce has a full slate of events starting in early June that draw weekend crowds, and activities such as fly fishing, mountain biking, hiking and equestrian draw reliable crowds. Steamboat also offers a weekly farmers market and professional rodeo throughout the entire summer season. The Steamboat real estate market is recovered from the lows of 2008. Inventory in sub $1mm residential properties is at a low, and there has been significant investment in the downtown retail and restaurant scene, with a major new residential development just approved by the city and expected to be phased over the next several years. Even with a vibrant downtown, most of the residential inventory remains clustered around the base of the ski area, where luxury properties have seen a surge in prices and a rapid decrease in inventory. Luxury condominiums, such as those at One Steamboat Place (A Timbers Resort) have reliably sold in the range of $1500 per square foot, with nearby Edgemont notching a few sales in that range, while averaging closer to $900 per square foot. For comparison, newer high end construction in the heart of downtown has been closer to $600 per square foot. In addition to upgrading the skiing experience at Steamboat, the resort has invested in a lift served bike park, the longest alpine coaster in north America, mini-golf and an adventure part at the ski area base. Combined with the restoration of Burgess Creek, these amenities serve to bring visitors and locals alike to the base area during the warmer months. Steamboat remains unique among America’s ski resort, blending a wonderful mountain with a dynamic downtown and enduring western heritage in the many active ranches that fill the Yampa Valley.
Steamboat's Premier
Development Opportunity This 1.82 acre property with 12,500 square feet of commercial space is located adjacent to the Steamboat Springs Ski Area, recently acquired by the Alterra Mountain Company and a perennial Top 10 Ski Resort in North America. One of the few remaining development sites near the ski area, the property lies within easy walking distance of existing base area amenities, lodging, public transportation and entertainment. Zoned G-2, the development parcels offer flexibility with the highest permitted densities and heights in Steamboat Springs. G-2 allows for a mix of commercial, residential and lodging development. A maximum height of 105 feet will encourage tremendous views of the ski slopes, mountains and surrounding valley, as well as multiple options in regards to product mix within the future development. Residential possibilities include luxury condominiums, apartments and even much needed workforce housing for the ski area and adjacent businesses. Commercial options may include restaurant/bar, retail, entertainment, hotel, office for ski related businesses and coworking.
Clocktower Development Parcel Total land size of 1.82 acres located at the base of the Steamboat Ski Area. Purchase includes 12,500 square feet of commercial condos, providing income potential during development. ZONING: Located at the entrance to Ski Time Square, this property is in the G-2 Zone district, allowing for the highest density development in Steamboat Springs. The new city guidelines recently changed the height restriction to 105 feet, allowing for maximum flexibility with potential development projects. Existing access from Burgess Creek Road and potentially from Ski Time Square.
Location Clocktower offers a unique mix of proximity to the base area and privacy. Easily walked, it nevertheless offers the opportunity for escape from the busiest aspects of the base area. Residents will be able to walk to the Gondola or Christie lift, enjoy a day on the slopes and then return, via a short walk, to an oasis with views of the activity below. The commercial condominiums are close enough to enjoy retail impact from the general ski area traffic, but also far enough away to be suitable for office and other ancillary functions that benefit from proximity to the mountain, but do not necessarily need to be on-site. With anticipated development at the adjacent Ski Time Square parcel, the base area may well see a rejuvenated restaurant and retail scene in a wider radius than supported by the current base area amenities. This was historically the case, but has been less so since much of the dated product in this zone was demolished in 2007, leaving a gap waiting to be filled.
Properties accessed off Burgess Creek Road Between Mt . Werner Circle and Storm Meadows Drive:
Properties Accessed off Burgess Creek Road East of Storm Meadows Drive/ Burgess Creek Road Intersection:
Clock Tower Square Condominiums 6 Storm Watch 12 Sub-Total 18
The Lodge (Duplex 2) 2 Burgess Creek Town 16 Single Family 4 Winterwood 4 at 4 16 Burgess Drive Single Family 4 Scandinav Lodge 18 Side Road SF 6 Side Road Dupl 2 Trails Edge and Kinnikinic Lane Single Family 11 Duplex 6 Ridge Road Single Family 20 Christie Drive Single Family 6 Duplex 2 Sub-Total 134 Properties accessed off Ski Time Square Drive Christie Condos 36 Antlers at Christie 18 Kutuk 31 Torian Plum Condos 62 Torian Creekside 47 Ski Time Sq Condos 79 Mount Werner Lodge 17 Sub-Total 290
Properties Accessed off Storm Meadows Drive Bronze Tree 37 Storm Meadows I 39 Storm Meadows 300 20 Storm Meadows 400 20 Storm Meadows East 37 The Ridge 8 Storm Meadows Club C 38 Tri-plex 3 Townhomes 6 Spa Condominiums 12 Club B 38 Club A 38 Townhomes up the hill 12 12 10 Private Residence 1 Sub -Total 337
Site Located at the intersection of Ski Time Square Drive, Mount Werner Road and Burgess Creek Road, The Clocktower development site sees daily traffic from occupants staying in one of the 800 residential properties which pass this corner to visit downtown or the ski area. 48% of Steamboat's lodging units are located within walking distance (less than 300 yards) from the Steamboat Ski Area. An additional 42% of Steamboat's lodging units are located less than 3 miles from the base in the areas surrounding Mt. Werner Dr. and Walton Creek Rd.
COMMERCIAL SPACES
SITE 1 SITE 2
SITE 1
IM
SKI T
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RE D
UA E SQ
SKI TIME SQUARE
MT. WERNER RD.
BU
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EE KR
D.
SITE 2
STEAMBOAT SKI AREA GONDOLA SQUARE
ONE STEAMBOAT PLACE
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ON
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Site 1 Vacant Land & Clocktower Commercial Condos | $4.95mm This exceptionally located property is situated just off Mt. Werner Circle with easy connectivity to the adjacent two-story Steamboat Ski Area parking lot. Nearly flat, the 1.2 acre parcel benefits from G-2 zoning, allowing both exceptional height and density. Pedestrian access to the ski area and public transport is provided via an easement along the front of the parcel. Proximity to public transportation and pedestrian access to the ski area base are advantages.
Above Concept - Includes extension onto Ski Area Land Pedestrian Easement Fronting Commercial Units
Site 1 View from Burgess Creek Road
THE COMMERCIAL CONDOMINIUMS: 12,500 square feet on two levels with eight separately owned residential condominiums above. The current tenant, Steamboat Powder Cats, occupies approximately 25% of the commercial space. They operate a seasonal business providing back-country ski tours by snow cat, and attract a high net worth clientele for day trips starting at $635 per person. Zoning and covenants allow restaurant or bar development on the vacant lower level, and for a wide variety of uses, such as retail, on the main level. With Torian Plum covenants restricting the sale of ski related merchandise, Clocktower may be able to fill this void. Other uses might include a ski lounge and storage serving future Clocktower development, the general public or nearby vacation condominiums, which tend to have little secure owner storage.
Site 2 Vacant Land | $2.9mm
The upper parcel at Clocktower welcomes creative, mixed-use development taking advantage of highly flexible G-2 zoning. Views are maximized on this sloping parcel, with the potential for easy pedestrian connections to the mountain on the lower level. Automobile access is from Burgess Creek with surface and podium parking options possible. Shift some potential density downslope to Site 1 and create an exclusive enclave mixing retail, fine dining and luxury homes, comparable to those selling for $1500 per square foot at One Steamboat Place. Easy access, spectacular views and a quiet escape from the busy base area create the opportunity for an island of luxury without forfeiting easy access to skiing, biking and other base area amenities.
Site2
Below: View from Site 2
Acres
0.7
FAR
Unlimited
Lot Coverage
65%*
*Can shift some density to other parcel
Potential Development Concept Site1 Site2
3
Building 1
15 Residential Condos (27,000 sqft)
Building 2
10,000 sqft of Retail
Total Site 1
27,000 sqft of Residential Condos and 10,000 sqft of Retail Space
4 Site1
Site2
1 2
Building 3
18 Residential Condos (33,000 sqft)
Building 4
8 Residential Condos (15,200 sqft) and 6,000 sqft of Retail Space
Total Site 2
48,200 sqft of residential condos and 6,000 of Retail Space
The above plan was created to show a lower density, phased conceptual for how the property might be redeveloped, incorporating the existing Clocktower commercial building. This plan also allows for an integrated development of all sites without the purchase of the residential condos above the Clocktower commercial space. Through conversations with the Steamboat Ski Corp, there could be an opportunity to incorporate the existing parking structure into a future development plan. This conceptual shows two restaurant sites located on the parking deck. It also provides easy access and parking from both Ski Time Square Drive and Burgess Creek Road by integrating the parking lot, with improved pedestrian access.
Alternate Development Concept Site2 Concepts
Below are sales which have taken place at the Steamboat Ski Base Area incomparable projects.
Snapshot of the Steamboat Community 2 7 . 4 % are y oung, m obi l e, wel l e du cated, and wel l -e mpl oye d, t hey a re mo re likely to re n t i n l ow-densi t y, u r b a n neighbor h oods t h rough ou t t h e co untry. Th e y go onl i ne for p rof e s s io nal net wor ki n g, on l i n e d a t i n g, and bl oggi n g. They buy n at u ral, o rganic, or envi ron ment al l yf r i e n dly pro duc ts.
1 4 . 7 % a re u p -a n d -comi n g , s o we f re q u e n t l y ch a n g e j ob s a s we cl i mb t h e l a d d e r. Th e y re n t h ou s i n g , wh i ch of t e n con s i s t s of con d os , t own h ome s , or a p a r t me n t s . Th e y t e n d t o l i ve i n l owe r-d e n s i t y n e i g h b or h ood s of l a rg e me t ro a re a s .
1 3 . 7 % te n d to b e m a rri e d c o u p l e s th a t l i v e i n th e su b u rb s. 8 0 % o w n th e i r h o m e s, a n d th e i r e d u c a ti o n a n d d i v e rsi ty l e v e l s m a tc h th e o v e ra l l US a v e ra g e . T h e y e a t o u t re g u l a rl y, b u t sp e n d l o ts o f ti m e o n h o m e i m p ro v e m e n t a n d re m o d e l i n g p ro j e c ts.
M A R K E T PROFILE
MAR KET PR O FI L E
M A RK E T P ROF I LE
• L iberal seg m e n t t hat co ntributes t o NPR an d PBS. • Sho p at Tra de r Joe’s an d Whol e Fo o ds. • Budget tim e —ut i l i ze h ome cleaning s er vi ce s so t h e re’s t ime fo r yoga. • U se the we b for profe ssi on al netwo rk ing , bl oggi ng, and online dating. • Read magazi n e s an d books on a tablet, som e t i mes whi l e ex erc ising a t h ome. • Go to art g al l e r i e s an d make a rt at ho me.
D emog r a p hi c s from E S R I : E S R I .c o m /t a p e s t r y
• Bu y d i g i t a l b ooks f or t a b l e t re a d i n g , a l on g wi t h ma g a z i n e s a n d n e ws p a p e r s . • F re q u e n t t h e d r y cl e a n e r. • G o on b u s i n e s s t r i p s , a ma j or p a r t of wor k. • Wa t ch movi e s a n d TV wi t h vi d e o-on -d e ma n d a n d HDTV ove r a h i g h -s p e e d con n e ct i on . • Con ve n i e n ce i s ke y— s h op a t A ma z on . com a n d p i ck u p d r u g s a t t h e Ta rg e t p h a r ma cy. • Ea t ou t a t Th e C h e e s e ca ke F a ct or y a n d C h i ck-f i l -A ; d rop b y S t a r b u cks f or coff e e . • L e i s u re a ct i vi t i e s i n cl u d e g a mb l i n g , t r i p s t o mu s e u ms a n d t h e b e a ch .
• E n j o y w o rk i n g o n h o m e i m p ro v e m e n t p ro j e c ts a n d w a tc h i n g D I Y n e tw o rk s. • M a k e f re q u e n t tri p s to w a re h o u se /c l u b a n d h o m e i m p ro v e m e n t sto re s i n th e i r m i n i v a n o r S UV. • O w n a g i a n t sc re e n T V w i th f i b e r- o p ti c c o n n e c ti o n a n d p re m i u m c a b l e ; re n t D V D s f ro m R e d b o x o r N e tf l i x . • Ve ry c o m f o rta b l e w i th n e w te c h n o l o g y ; e m b ra c e th e c o n v e n i e n c e o f c o m p l e ti n g ta sk s o n a m o b i l e d e v i c e . • E n j o y d i n i n g a t C h i l i ’s, C h i c k f i l - A, a n d P a n e ra B re a d . • F re q u e n tl y b u y c h i l d re n ’s c l o th e s a n d to y s.
Steamboat Springs Overview Often referred to as Ski Town, USA,ÂŽ and known for its World Class skiing facilities, Steamboat Springs was originally a summer resort. Travelers in the early 1900's visited Steamboat Springs in the summer months for the natural hot springs and vast hunting and fishing opportunities. Today, summer activities span the spectrum, including three championship golf courses, an indoor-outdoor tennis center, biking, hiking, kayaking, fly fishing, and horseback riding right in town. Howelsen Hill, which sits directly across the Yampa River to the south of Howelsen Place, opened in 1915 and is the oldest continuously operated ski area in Colorado. The complex has the largest and most complete natural ski-jumping complex in North America. Howelsen Hill is also the home of the Steamboat Springs Winter Sports Club, the oldest ski club west of the Mississippi. The club provides training in alpine, Nordic, freestyle, and snowboarding for athletes of all skill levels.
Location Steamboat Springs is approximately three hours by car from Denver International Airport. It is served by a regional airport in Hayden, approximately 30 minutes by car and a local general aviation airport. Hayden offers connecting flights to western hubs throughout the year, with increased direct flight in the high season. Major connecting markets include Los Angeles, New York/New Jersey, Dallas, Austin, Minneapolis and numerous others.
Steamboat Springs Market Information L A B OR F O R C E S TAT I S T I CS - RO U TT C OU N T Y 2 0 1 5
A CCO M M ODAT IONSS TEA M B O AT SP RINGS 201
L A B O R FOR CE :
14,458
NUMBER OF PI L L OW S:
20,542
EMPLOYED:
13,852
NUMBER O F B E DS:
11,411
NUMBER OF U NI TS:
3,390
U N E MPL O YE D: U N E MPL O YME NT R ATE :
606 2.4%
Source: Steamboat Springs Chamber
Source: Yampa Valley Data Partners
Steamboat Signature Events: • Winter Carnival • Pro Rodeo Series • Weekly Farmers Market • July 4th Celebration and Parade • First Friday Art Walk • Free Concert Series • Mustang Rally • Balloon Rodeo • Art In The Park • Triathlon and Running Series • Town Challenge Bike Race Series
PO P ULA T I O N
5 M I LES
10 M I LES
M E D I A N A GE :
3 7.5
37.9
M E D I A N A GE (M A LE ): M E D I A N A GE (F E M A LE ) :
3 6.1 3 8.9
36.5 39.4
5 M I LES
10 M I LES
2 ,816
7,515
2.3
2.3
$ 8 3,101 $ 6 1 9,280
$82,989 $631,221
TOT A L P O P ULA T I O N :
HO U S EH O L D S & IN CO M E
TOT A L H O U SE H OLD S: # P E RS O N S P E R HH : AV E RA G E HH I N CO M E : AV E RA G E HOUSE VALUE:
6 ,513
19,974
W hy Steamb oat? • Between 280,000 and 330,000 visitors come to Steamboat Springs annually. (Source: Steamboat Springs Chamber) • Steamboat is Colorado's fifth largest ski resort based on skiable acreage and ranks second in the state for the most number of trails. • Eight month tourist season with balanced winter and summer seasons. • Downtown Steamboat restaurant sales have increased 4.1% annually over the past five years and are 20% above their pre-recession peak. • Steamboat is the seat of Routt County and has an estimated 12,260 residents. Routt County has an estimated 23,865 residents. • A vibrant, historic Downtown district is home to 127 retail shops, including 43 restaurants. • Future tourism draw and upside from Steamboat's current development of the Yampa Street Promenade.
Brokerage Disclaimer This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owners of the Property (the “Owner�), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Colorado Group Realty, LLC. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this memorandum, certain documents, including Leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or Colorado Group Realty, LLC, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Colorado Group Realty, LLC. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Colorado Group Realty, LLC. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Colorado Group Realty, LLC.
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