Snowmass Mountain Village, Snowmass Village, CO
Argosy Real Estate invested in the acquisition, rezoning, and development of a residential site into 16 luxury lodging units.
Property: One Snowmass Place
Operating Partner: Chaffin/Light
Location: Snowmass Village, CO
Asset Class: Residential Land (Resort)
Initial Closing: December 2007
Realized Multiple: 1.3x
Realized IRR: 149.3%
Exit Date: June 2008
- Low Cost Basis – The operating partner initiated a purchase option contract on sites in 2003 and closed in 2007, thereby locking in 2003 pricing and minimizing carrying costs. Purchase option payments were applied to the acquisition price.
- Risk Mitigation – High-barrier-to-entry market and very well connected operating partner who had ongoing development experience in this market for several decades. Fund investment executed after acquisition in 2007 as participating debt.
- Value Creation – Joint venture was in final phase of assembling overall site. Also in final phase of entitlement process.
- Multiple Exit Strategies – While initially purchased to develop into a 16-unit residential whole ownership building, prior to closing on an additional small adjacent parcel, a bid for the assembled site was received from Related/Westpac, the master developer of Snowmass Mountain Village and Base Village. The assembled site was sold in June 2008.
