Vail’s Summer season is off to a great start the spring snowstorms have resulted in a green and lush Vail Valley. I am writing an update on all of the activity at that has occurred in the Arrabelle this year. Of all the properties in Vail Arrabelle has had the most activity by far with 6 sales so far this year and an additional 1 units under contract at this time. This activity in the current market is a testament to the location and quality of the Arrabelle.

Details of this years sales:

#272 This 2 bedroom is located in the east wing of the building and faces due east  over the Lionshead Mall. This sold for $1,945,000 or $955 per square foot.

#330 This 2 bedroom is located in the north west corner of the building near Montaneros. It sold for $2,160,000 or $1020 per square foot.

#368 This 3 bedroom is located in the north east corner of the building near Bart and Yeti’s. It sold for $2,850,000 or $1,326 per square foot.

#476 This 3 bedroom is located in the east wing with easterly views toward Gold Peak. It sold for $3,090,000 or $1,393 per square foot.

#284 This 4 bedroom is located in the south east section of the building above the Vail Chop House with direct southern views up Vail Mountain. A premiere location sold for $5,750,000

 or $1,714 per square foot.

#201 This is a large 4 bedroom unit that faces inward to Vail Square and the ice rink. It sold for $4,600,000 or $1188 per square foot.

Under Contract Units:

#655 Another large 4 bedroom with views to the south west, one of the premiere 4 bedrooms at the Arrabelle. The list price is $6,950,000.

Analysis:

As mentioned Arrabelle has had good activity relative to the market but the values at the Arrabelle have been impacted  by the slow down in the market place and the large amount of inventory. A case in point is this years sale of  #284 at $5,750,000 the identical unit above #384 sold as a re-sale for $7,400,000 in May of 2008. Which indicates approximatley a 25%  reduction in peak to trough values. My prediction as to values for the immediate future is units that do not have a direct Vail mountain view will have a value range of $1,000sf to $1,400sf and I expect premium view units to have a value between $1,500sf to $1,800sf.

Arrabelle Inventory and Year to Date Solds:

May 1^st Snow report from Vail: 18 inches of snow have fallen, today’s temperatures are in the 30’s with partial sunshine, too bad the lifts closed 2 weeks ago!

The abundance of late season snow made for excellent April ski conditions. The uptick in spring snowfall also coincided with increased Lionshead Real Estate activity compared to the beginning of the ski season and certainly compared to 2009. As a matter of fact five condominiums were placed under contract since March 1, as a point of reference only 7 Lionshead properties were sold in all of 2009.

Vail Valley Numbers thru March

 March 2010 real estate transactions up 100% over last March
 This March saw the highest dollar volume month in over a year with $131 million in sales, bringing the first quarter of 2010 total to $318,726,934. These numbers are more than twice the numbers of first quarter 2009.There were 102 transactions in March bringing the first quarter to 276 which is nearly twice that of 2009 through the same period. Fourteen of these transactions were Westin Riverfront Resort and Spa sales totaling more than $6 million.Of the transactions in March, 53 were multi-family homes which sold for an average sales price of $990,296. Properties over $2 million accounted for 62% of the total dollar volume. Eagle County’s overall average sales price was $1,291,187

Lionshead Inventory as of May 1. 2010

Active Listings: 94

Listings Under Contract: 52(48 are Ritz Carlton Residences)

Year to Date Solds: 10

 Year to Date Lionshead Sold Statistics:

             Sq Ft     List Price   List $/ SF  Sold Price    Sold $/SF      

 High   3,353   $7,650,000   $2,433    $5,800,000         $1,845                

 Low      802      $1,200,000   $973        $1,100,000          $859        

 Avg     2,088   $3,408,550   $1,515       $2,949,251          $1,322               

Notable Sale from this past Winter:

The Tower Residences at Lion Square #501-601, this two level 4 bedroom Penthouse was closed for $5,800,000/$1,844.78 sf on March 10^th. This new construction property is located in the east tower of the redeveloped Lion Square North. The Penthouse finishes were comparable to higher end finishes in Vail,  as found in properties like the Arrabelle, it also had good south facing views to the ski mountain.This sale is the current high water mark for Lionshead, it was placed under contract a few weeks prior to closing and not pre-sold prior to the market downturn.

Commentary:

We are starting to see activity in Lionshead primarily in the $1 to $3 million price range by Buyers that have been on the “sidelines” during Vail’s boom period and are now taking advantage of well priced properties whose owners have adjusted their list prices more in line with the reported sold statistics listed above. A number of prospective Buyers are taking a “wait and see” approach to gauge the impact of the completion and closings  of the Ritz Carlton Residences and the new units at the Landmark on the Lionshead market.  From analyzing the year to date numbers I now believe that Lionshead is coming off of the bottom of the market in terms of transaction volume. I expect with an improving economy, the return of the stock market to within 20% of its high mark and the successful completion of the Ritz Carlton Residences we will see continued improvement in transacted volume.

For Buyers:In terms of inventory selection and the opportunity to negotiate a very attractive price this summer and fall could present an opportunity to acquire a property in the newly re-devoloped Lionshead that you will enjoy for many years! There are currenly properties that are on the market  in “A plus” locations that would never be available on the open market in normal Vail market conditions.

For Sellers: With 94 properties currently available in Lionshead  I expect pricing pressure to continue as we are very much in a “Buyers Market”  the recent uptick in dollar volume not withstanding. If we have learned one thing during this protracted market downturn, it is that thoughtful pricing of properties is absolutely critical for success.  Unlike a year ago when the market dislocation made it virtually impossible to accurately price homes in nearly every price point, today there is more liquidity, more sales data, and more economic stability, leading to better pricing accuracy.  Properties priced to reflect the current market pricing and conditions are selling while overpriced inventory continues to get very little buyer inquiry or showing activity. 

 In Closing:Thank you for taking the time to read my Lionshead Property Report, please let me know if you have any questions or would like additional data. I study and watch the Lionshead market on a daily basis and have had the good fortune of helping my clients Buy and Sell properties in virtually all of the buildings in Lionshead.

Behind me you can view the unwrapped east side of the Ritz Carlton Residences, Vail, as well as view some virtual fly thru’s of differant areas of the building. It is exciting to see the progress on the building!

• The Westin Riverfront Resort: This property was completed a little more than one year ago. The Developer is liquidating all of the remaining inventory with a 40% discount. It is a very well constructed property that is LEED certified and is connected to the base of Beaver Creek by a gondola. You can learn more about the property here http://www.visit.riverfrontresortandspa.com/location.html

This link is to Westin Riverfront #449(#339 is also available) which has a very good views to the Gore Range Mountains http://idx.myvailbroker.com/idx/5678/details.php?idxID=293&listingID=V315658 The list price is $1,250,000 but with the 40% discount the price drops to $750,000. A good value for a brand new full service property with a rental program option. Studio units start in the mid $200,000’s

• Arrabelle at Vail Square #461: This is a 3 bedroom 2.75 bath priced at $2,795,000, the current owner paid $2,195,000 back in 2005 during the Arrabelle lottery. This ski in/out building in Lionshead has transformed the base area and is in high demand for rentals, as a result the residences produce very good rental numbers. Due to the current owners motivation it may be possible to acquire the property at close to its original sales price, the unit now includes furnishings. http://idx.myvailbroker.com/idx/5678/details.php?idxID=293&listingID=V308618

• Landmark #217: This is a completely remodeled 3 bedroom unit in the Landmark. The Landmark in Lionshead also u a cnete  building wide remodel and now has a new exterior, lobby and pool deck. If you are looking for a 3 bedroom that is an easy walk to the gondola for a price that is below a lot of 2 bedroom properties then this is worth a look. More details are available on this link http://idx.myvailbroker.com/idx/5678/details.php?idxID=293&listingID=V308618

• Tower Residences at Lionsquare Lodge #401:  This is a brand new 3 bedroom plus den with good views to Vail Mountain and excellent finishes. This unit is currently listed for $3,350,000, however the Developer has to take this unit back because the Buyer did not perform and surrendered his earnest money, which was a substantial deposit of 20%. More details available at http://idx.myvailbroker.com/idx/5678/details.php?idxID=293&listingID=V314295

• The Ritz Carlton Residences Vail #1 :First the Developer has reduced prices by 20% and included a $50,000 Arrabelle Club social membership to all purchasers. Residence #1 is a big 5 bedroom Residence listed for $3,995,000, this unit faces south and walk out to the Gore Creek Place path. The web site is where you can see views, descriptions of amenities and more recent photos at www.theresidencesvail.com Prices start at approximately $2,000,000 for a two bedroom Residence.

Explore Vail

Within the site, guests experience Vail as never before using the Explore Vail section at www.myvailbroker.com/vail.php. Touring the area using Google Earth and Google Maps provides an immersive, detailed and fun way to visit Vail and the surrounding areas. Each of the major towns includes a description as well as other information on schools and more – all on the map. You can even use Yelp’s Search Tool to look for interesting venues around the town. Try searching for ‘Food’.

Social Media

Part of our new look and feel includes quick links to my Facebook, Twitter and LinkedIn accounts. Clients and friends can stay in touch and see what’s happening in Vail through any of these channels.

Mobile Ready

Guests or residents of Vail can also enjoy www.myvailbroker.com from their smartphone browsers. The blog comes mobile ready and a free iPhone application is available for your convenience with Android and Blackberry apps coming soon. You can search for all of my featured properties and from the MLS database, all at the palm of your hand.

Click here to download the app from the App Store and enter in code 5678
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Please enjoy the new site and as always comments and feedback are always welcome.

Matt