Skico and Intrawest to develop time shares at Snowmass Club
July 30, 2002
The Aspen Skiing Co. and Intrawest expect to close a deal this week that will create a new partnership to develop and operate a 21-unit fractional ownership project at the Snowmass Club.
The partnership is the second between the Skico and Intrawest, which is the largest owner and operator of ski resort real estate in North America.
The first partnership between the companies is for Base Village, a 683-unit project now being reviewed by the town of Snowmass Village.
“We’re pleased to have Intrawest as our partner,” said Dave Bellack, a senior vice president and in-house counsel for the Skico. “We’re approved; we’re just wrapping up the last loose ends.”
Jim Onken, president of Storied Places, an Intrawest subsidiary that is doing the deal, stressed on Monday that the deal had not yet closed but was expected to do so in the next 24 to 48 hours.
“This will be the Intrawest interpretation of the private residence club,” Onken said. “It will be a step beyond what has traditionally been offered.”
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Both Bellack and Onken said there were no other potential partnerships between Intrawest and the Skico being discussed at this time and that this deal was not a prelude to any larger deal involving ski area ownership.
Intrawest is essentially buying into an ongoing Skico project called Phase 2 of the Snowmass Club, which includes 21 new condos in two buildings.
Phase 1 of the redevelopment of the club is complete, and the 30 units that have been built behind the main clubhouse have been sold in 1/7th shares. Of the 210 ownership opportunities in Phase 1, about 190 have been sold for prices ranging from $250,000 to $350,000.
Phase 2 of the club will include three-, four- and five-bedroom condos that will be sold in 1/8th shares. There will be 21 units with 168 fractional ownership slots available. Prices will range between $350,000 and $550,000.
If one assumes a midrange sales price of $450,000, it means the project could generate $76 million in sales revenue.
A share entitles an owner to five weeks in the unit over the year and the right to use other available units for a nominal daily charge. It also gives owners access to the Snowmass Club health club and golf course.
And because the project will now be one of Intrawest’s “Storied Places,” it means that owners will be able to exchange time at other resorts in either beach or mountain properties.
Intrawest and the Skico are working with owners of Phase 1 units to bring them into the same Intrawest resort network.
The first building in Phase 2 is under construction in the location where the old tennis bubble stood next to the main clubhouse. It is expected to be finished by next winter. Construction on the second building will start in the spring if market conditions warrant.
The new partnership between the Skico and Intrawest is really a partnership between two subsidiaries, Snowmass Club Associates, which the Skico owns, and Storied Places, a new unit of Intrawest that is charged with developing and operating fractional ownership resorts.
Another Intrawest entity called Playground will be marketing the new condos at the club. Playground has also been selling the Phase 1 time shares at the club since late last winter.
“We are more the developer and the operator,” explained Onken of Storied Places. “And we hire an Intrawest company, Playground, to sell and market our product. They are all Intrawest, but we are wearing different hats.”
Playground is expected to operate on the corner of Hyman Avenue and Galena Street in the old Aspen Drug space. The space will be used to first market the Snowmass Club project, which has been dubbed “The Sanctuary,” and then to market Base Village should it win approval.
Onken, who lived in Aspen in the late 1970s and early 1980s, was sympathetic to concerns that some merchants in downtown Aspen have about the changing retail mix and the growing number of ground-floor real estate sales offices.
“We hope to make it an attraction and to animate it,” Onken said of the Aspen Drug retail space.
[Brent Gardner-Smith’s e-mail address is firstname.lastname@example.org]