Owning A Piece of Paradise
By Cherilyn Sajorda

As real estate prices continue to soar in Aspen and Vail, buyers are beginning to look at fractional-ownership developments. "The cliché in this town is, 'I came for the winter and stayed for the summer,'" says Scott Bandoni of Prudential Colorado Properties in the Beaver Creek office. Two seasons, in fact, is all it takes to keep the Rockies bustling with visitors and steadfastly booming in the luxury real estate world. The lure of unbeatable ski resorts in the winter and favorable weather in the summer combine with an unyielding flow of recreation and activity in community-driven village atmospheres, turning Colorado's most-renowned resort locales into much-desired, year-round destinations.

Resort areas have been void of any kind of market slowdown; in fact, soaring listing prices have kept areas such as Vail and Aspen ultra-exclusive to the über wealthy. Now, with the trend in fractional clubs catching on faster than ever before, skyrocketing prices are no longer keeping second- and third-home buyers at bay.

"The fractional product allows for a new market to come in," says Ruth Kruger of Aspen-based Worldwide Exclusive Properties. "Which, up until now, people have been frozen out of because prices have been so high."

In Aspen, the average house sale is $4 million, but listing prices have gone upwards of $40 million. In fact, Brian Hazen of Coates, Reid & Waldron in Aspen reports there have been numerous $20 million-plus sales in the past year alone. The fractional ownership trend, says Hazen, has been able to bring in even more people, many of whom are discovering Aspen for the first time. The buzz in Aspen is on the Residences at The Little Nell (RLN)-a new fractional club nestled at the base of Aspen Mountain by the world-famous Silver Queen gondola, consisting of 26 fully furnished, three- and four-bedroom residences with amenities matching those of a 5-star hotel sold in one-eighth shares for $1.625 million.

R.J. Gallagher, managing director of marketing and sales for RLN, points out these residences are the first new product to be built ski-in/ski-out in Aspen since the 1960s. Amenities matching that of a 5-star hotel, including concierge teams and a complete on-site health and fitness club, are also key components drawing buyers in. Now, with all four-bedroom residences sold out and only less than 25 percent of three-bedroom residences remaining at $1.625 million a share, it is likely RLN will be completely sold out well before its expected completion in the summer of 2008.

Strict growth control and zoning regulations within Aspen make fractional clubs such as RLN even more rare, and therefore desirable. "I'm not sure you will ever see a project like RLN approved in Aspen again," Gallagher says in reference to the difficulty of getting the development approved. "I think what you're going to see is what RLN offers can never be duplicated again in Aspen." True to its resort-town nature, Realtors agree Aspen's unwavering high-end market is largely due to its historic character and welcoming atmosphere, which get people hooked and yearning for more. "Aspen is a community with soul," says Kruger. "It's friendly, warm and welcoming, you may be a stranger but you're never alone."

The ever-popular destination of Vail has also had its share of booming activity with high-end resort properties and fractional ownerships. Current market prices for high-end listings in the Vail Valley begin at $2 million and go upwards of $21 million. Top-rated Vail and Beaver Creek resorts as well as a melting pot of culinary, music and family-friendly festivals are core factors keeping this resort locale in constant demand.

"The sales trend over the last 12 months has been remarkably consistent," Bandoni reports. "New real estate development always generates demand, and in the Vail market, 66 percent of it is new construction."

For vacationers and prospective property owners, the demand for a top-notch resort living experience is being met with an influx of marquee names such as the Ritz and Four Seasons streamlining their way into Vail. According to Bandoni, buyers seek "turnkey properties with low or no maintenance required. They want to come here, experience it, and own it."

The Chateaux Society, a fractional estate ownership club offering a selection of exclusive properties in various areas of the country, is also meeting the demand in the Vail Valley with Chateau de Facon, a grandiose estate being sold in one-tenth shares for $1.5 million. Located minutes away from the Cascade Ski Lift at the base of Vail Mountain, features of the 6-bedroom home include a Zen room, guesthouse, a private courtyard, and space on Gore Creek for a private beach area.

"One of the main benefits of projects such as ours is service, service, service," says David Disick, founder and CEO of the Chateaux Society. "Our marketing is sophisticated and targeted, unlike general real estate or time-sharing marketing. It's not solely a numbers game, but also building a profile which will appeal to the upper-end buyer."

Owner/members are also privileged with six Colorado Ski Country Gold Passes and various amenities within Vail, including the Cascade Resort and Aria Spa, the Red Sky Golf Country Club, and international gourmet society La Chaine des Rotisseurs. "All you have to do is get on a plane and everything is taken cared of for you," says Disick. "Your ski lifts are reserved, your dining reservations are made…and management [for the Chateaux Society-Vail] is dedicated to the quality [of your resort-living experience]."

AT A GLANCE:
  • Aspen's current highest-priced listing is Hala Ranch for $135 million, though the high-end market typically ranges from $2 million to $40 million.
  • At The Residences at the Little Nell, four-bedroom units have completely sold out, along with nearly 75 percent of three-bedroom units. Since sales began a little more than a year ago, RLN has gone through 14 price increases.
  • Current market prices for high-end listings throughout Vail and Beaver Creek begin at $2 million and go upwards of $21 million. Residences in this range vary from two-bedroom condos to five-bedroom enclave estates.
  • The Chateaux Society offers additional fractional-ownership homes outside of Vail as well, including Kauai, Tahoe, and St. Andrews.